PRDV205 Final Exam - Business Law and Legal Procedures | Practice Test / Quiz / MCQs

1. A rule of law system is a system:

under which the government and people are bound by laws.allows predictability and the restraint of government action.Answers A and C are both correct.that originated in the United States.

2. The Supreme Court of the United States has held that in the American federal system:

the authority of the states and of the federal government is equal.the federal government has supremacy over the states.the states have no authority except what is granted by Congress.the states have supremacy over the federal government.

3. According to the National Labor Relations Act, workers participating in interstate commerce:

can be fired for attempting to form a union.have the right to bargain collectively.cannot engage in concerted activities in violation of antitrust laws.are at-will employees.

4. Article 9 of the Uniform Commercial Code (UCC) governs security interests in all of the following categories EXCEPT:

LandGoodsIndispensable paperIntangible property

5. Why must a secured party perfect the security interest?

To ensure that there is an authenticating recordTo allow the creditor to repossess the collateralTo prevent others from learning about the security interestTo prevent subordination to the rights of later lien-holders

6. Which of the following is one of the six unfair labor practices of unions prohibited by the Taft-Hartley Act?

Secondary boycottsUnion organizingStrikesCollective bargaining

7. Under the UCC, an instrument will not be negotiable if:

it refers to another writing.payment is limited to being from a specific source or fund.it states an express condition.All of these answers are correct.

8. At the trial stage of a legal case, which of the following can occur?

The case can be dismissed based on the statute of limitations.The case can be dismissed for failure to state a cause of action.The judge can issue a judgment notwithstanding the verdict.Interrogatories may be submitted.

9. In addition to land, what can real property include?

Plants and trees severed from the landCertain things attached to landSubsurface rightsCertain things attached to land / Subsurface rights

10. With regard to the powers of the president, the US Constitution:

requires the president to consult with Congress before making major foreign policy decisions.has provided clear and unambiguous limits.does not allow the president to use military force without congressional authorization.is considered deliberately ambiguous.

11. Fill in the blank to complete the statement below.
The _______________________ governs private industry and imposes stringent standards on the discharge of pollutants into waterways and publicly owned sewage systems.

The Resource Conservation and Recovery ActThe Clean Water ActThe Marine Protection, Research, and Sanctuaries ActThe Environmental Protection Act

12. Consider the following scenario and choose the correct answer from the options below.
You accept an employment contract for a term of one year with XYZ Corp. to design widgets, with a compensation of $75,000 for the year. Three weeks following your acceptance, your project supervisor presents you with a new contract that includes the requirement that you make coffee every morning.
If you sign the new contract, what will be the likely result?

You will not be bound to the new contract because no additional consideration has been provided.You will be bound to the new contract because the subject matter of the contract is legal.You will be bound to the new contract because you accepted the initial offer.You will not be bound to the new contract because your acceptance of the initial contract does not mirror the current offer.

14. In filing articles of incorporation with a state's corporations division, which of the following MUST the filer do?

List an agent for service of processState the price at which shares of stock will be offeredExplain in exact detail the purpose of the corporationList the name of all executive officers

15. If someone offers to sell you an iPad for $250 and you make a counter-offer of $150:

your counter-offer binds the offeror.you can still bind the offeror by later accepting the original offer of $250.your counter-offer serves as a rejection of the seller's offer.your counter-offer will be considered an acceptance.

16. The doctrine of separation of powers basically requires that:

the authority of the president (the executive branch) is distinct from and superior to the other branches.the authority of state governments is superior to that of the federal government.each house of the US Congress has its own legislative authority.each branch of the government plays its own role in governing.

17. Consider the following scenario and choose the correct answer from the options below.
An executive of ABC Corporation, a publicly traded corporation, is presented with the company's financial statements for certification. She notices that some of the debts of the company have been assigned to shell companies in an attempt to hide the company's debt and create the appearance that the company has a higher income than it actually does.
If the executive certifies the financial statements, she may face a maximum of:

15 years in prison25 years in prison10 years in prison20 years in prison

18. An important goal of a regulatory compliance program is to:

ensure that the goals of the board and the audit committee are the same.promote board action when red flags arise.reduce the need for a corporation's board to take action.protect corporate officers from liability.

19. A sole proprietorship is a form of business in which:

owners are not liable for the debts of the business.the business offers shares of stock to owners.the owner and the business are legally identical.the owner and the business are taxed separately.

20. Under a federal system of government:

power is held by independent states.power is divided between a central government and local governments.power is centralized within the national government.the central government is a creation of regional governments.

21. If a tortfeasor knows with substantial certainty that certain consequences will result from his or her act, the tort he or she is liable for is:

An intentional tortNegligenceStrict liabilityA breach of contract

22. In order to comply with the Securities Act of 1933, a company issuing securities to the public must generally register the securities with the Securities and Exchange Commission, as well as:

disclose material information about the offering.demonstrate that the offering is fair and just and will provide a fair return.demonstrate that there is an expectation of profit.undergo a merit review.

23. Which of the following might raise an ethical red flag for a corporation's board?

The creation of a 'culture of fear' that penalizes internal debateA thorough review of a potential issue, followed by the decision that there is no problemThe audit committee exercising direct responsibility for the appointment of independent auditorsLow levels of litigation against the corporation

24. One common defense to a claim of patent infringement argues that:

the patent is for a living thing and therefore is invalid.the patent is only a business method patent.Answers A and C are both correct.the patent is not valid.

25. In light of the Sarbanes-Oxley Act, _______________________ is/are required to take a more active role in corporate governance within companies.

shareholderssenior finance executivesthe audit committeeAnswers A and C are both correct.

25 Questions

❤ If you liked Fatskills, consider supporting us by checking out The Life Manuals You Never Got.

About | Explore | User Guide | Topics | Subjects | Doubt Solver | Career Aptitude Test | Answers | Free Tools | OSHA Basics Quiz | What Should We Know?
Privacy | Terms |

Without work one finishes nothing. - Ralph Waldo Emerson
© 2026 Fatskills.com

All trademarks, logos and brand names are the property of their respective owners. All company, product and service names used in this website are for identification purposes only. Use of these names, trademarks and brands does not imply endorsement.

25 Questions

❤ If you liked Fatskills, consider supporting us by checking out The Life Manuals You Never Got.

About | Explore | User Guide | Topics | Subjects | Doubt Solver | Career Aptitude Test | Answers | Free Tools | OSHA Basics Quiz | What Should We Know? Privacy | Terms |

Without work one finishes nothing. - Ralph Waldo Emerson© 2026 Fatskills.com

All trademarks, logos and brand names are the property of their respective owners. All company, product and service names used in this website are for identification purposes only. Use of these names, trademarks and brands does not imply endorsement.

About | Explore | User Guide | Topics | Subjects | Doubt Solver | Career Aptitude Test | Answers | Free Tools | OSHA Basics Quiz | What Should We Know?
Privacy | Terms |

Without work one finishes nothing. - Ralph Waldo Emerson
© 2026 Fatskills.com