What is the primary purpose of contract law in business?
a. To regulate competition
b. To protect intellectual property
c. To enforce agreements between parties
d. To govern employment relationships
Answer: c
Which type of business structure provides limited liability to its owners and is a separate legal entity?
a. Sole proprietorship
b. Partnership
c. Corporation
d. Limited Liability Company (LLC)
Answer: c
What is the legal term for a false spoken statement that harms the reputation of another person or business?
a. Slander
b. Libel
c. Defamation
d. Invasion of privacy
Answer: a
In business law, what does the term “Tort” refer to?
a. A breach of contract
b. Criminal wrongdoing
c. Civil wrongdoing that causes harm
d. Intellectual property infringement
Answer: c
What is the purpose of the Uniform Commercial Code (UCC) in business law?
a. To regulate labor relations
b. To govern sales and commercial transactions
c. To protect consumers from fraud
d. To enforce antitrust laws
Answer: b
Which intellectual property right protects inventions and discoveries?
a. Trademark
b. Copyright
c. Patent
d. Trade secret
Answer: c
What is the legal term for an agreement in which one party gives something of value in exchange for the promise of the other party?
a. Contract
b. Tort
c. Bailment
d. Warranty
Answer: a
In business law, what does the term “Lien” refer to?
a. A document transferring ownership of real estate
b. A legal claim on property as security for a debt
c. Unfair competition practices
d. Discrimination in the workplace
Answer: b
Which business law concept holds individuals and organizations responsible for the damage they cause to others, intentionally or unintentionally?
a. Strict liability
b. Contributory negligence
c. Assumption of risk
d. Vicarious liability
Answer: a
What is the legal term for the unauthorized use or imitation of someone else’s trademark?
a. Copyright infringement
b. Patent infringement
c. Trademark infringement
d. Trade secret violation
Answer: c
Which legal doctrine allows parties to be released from their contractual obligations due to unforeseen circumstances that make performance impractical or unfair?
a. Force majeure
b. Duress
c. Mistake
d. Accord and satisfaction
Answer: a
What is the primary purpose of antitrust laws in business?
a. To regulate workplace safety
b. To prevent unfair competition and monopolies
c. To enforce contracts
d. To protect intellectual property
Answer: b
In business law, what does the term “Consideration” mean in the context of a contract?
a. A legal document
b. An exchange of promises
c. A formal meeting of parties
d. A monetary payment
Answer: b
What is the legal term for the intentional misrepresentation of facts with the intent to deceive another party?
a. Fraud
b. Negligence
c. Duress
d. Undue influence
Answer: a
Which type of contract is created by the actions and conduct of the parties, rather than by explicit written or spoken words?
a. Express contract
b. Implied contract
c. Executed contract
d. Void contract
Answer: b
What is the legal term for the unauthorized disclosure of confidential information?
a. Libel
b. Slander
c. Invasion of privacy
d. Breach of confidentiality
Answer: d
Which legal principle holds that a contract is not valid if one party was forced or threatened into entering it?
a. Mistake
b. Duress
c. Fraud
d. Unconscionability
Answer: b
In business law, what is the term for the transfer of one party’s rights under a contract to another party?
a. Assignment
b. Delegation
c. Novation
d. Accord
Answer: a
What is the purpose of the Equal Employment Opportunity Commission (EEOC) in business law?
a. To regulate workplace safety
b. To enforce antitrust laws
c. To prevent discrimination in employment
d. To oversee bankruptcy proceedings
Answer: c
Which legal principle allows parties to be released from a contract if both parties agree to a different agreement?
a. Accord and satisfaction
b. Novation
c. Rescission
d. Executed contract
Answer: a
In business law, what does the term “Liquidated Damages” refer to?
a. Damages established in advance and specified in a contract
b. Damages resulting from negligence
c. Punitive damages
d. Emotional distress damages
Answer: a
What is the legal term for a contract in which one party gives up the right to sue the other party for specified past actions?
a. Release
b. Waiver
c. Accord and satisfaction
d. Novation
Answer: a
Which legal doctrine holds employers liable for the wrongful actions of their employees while acting within the scope of their employment?
a. Strict liability
b. Contributory negligence
c. Respondeat superior
d. Assumption of risk
Answer: c
In business law, what does the term “Force Majeure” refer to in a contract?
a. A mistake in the contract
b. Unforeseen circumstances that make performance impractical or unfair
c. A breach of confidentiality
d. A type of contract remedy
Answer: b
What is the legal term for a contract in which one party gives up the right to pursue a legal claim against the other party?
a. Accord and satisfaction
b. Novation
c. Release
d. Waiver
Answer: c
In business law, what does the term “Breach of Contract” mean?
a. A criminal act
b. Violation of a contract’s terms without legal justification
c. A form of discrimination
d. Invasion of privacy
Answer: b
Which legal doctrine allows parties to be released from a contract if one party was under significant mental distress or pressure during its formation?
a. Mistake
b. Duress
c. Fraud
d. Unconscionability
Answer: b
What is the purpose of the Occupational Safety and Health Administration (OSHA) in business law?
a. To enforce antitrust laws
b. To regulate workplace safety
c. To prevent discrimination in employment
d. To oversee bankruptcy proceedings
Answer: b
In business law, what is the term for a court order requiring a party to do or refrain from doing a specific action?
a. Injunction
b. Subpoena
c. Writ of habeas corpus
d. Summons
Answer: a
What is the legal term for the termination of a contract by mutual agreement of the parties involved?
a. Rescission
b. Termination for convenience
c. Novation
d. Accord and satisfaction
Answer: a