Essentials of Business Law 8th Edition by Anthony Liuzzo – Test Bank

 

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Sample Test

Chapter 03 

True / False Questions

1.   The law assures each person certain rights and assigns each person certain duties.
True    False

 

2.   A private wrong that causes injury to another person’s physical well-being, property, or reputation is called a tort.
True    False

 

3.   Violation of a specific statute is a crime.
True    False

 

4.   A certain action can either be a tort or a crime; it can never be both.
True    False

 

5.   Crimes are classified into three groups according to the seriousness of the offense.
True    False

 

6.   Treason is a major crime defined by the Constitution of the United States.
True    False

 

7.   A person who commits felony may be punished with a prison sentence for not more than nine months.
True    False

 

 

8.   A misdemeanor is a more serious offense than a felony.
True    False

 

9.   A misdemeanor is a serious crime punishable by a prison sentence of more than a year.
True    False

 

10.                A category of illegal activity that includes embezzlement, stock swindles, fraud against insurance companies, credit card fraud, computer fraud, and theft of computer programs is known as business-related crime.
True    False

 

11.                White-collar crime is the term used to describe various crimes that typically do not involve force or violence committed by and against businesses.
True    False

 

12.                The willful or malicious act of causing the burning of property belonging to another person is known as larceny.
True    False

 

13.                Arson is the willful or malicious burning of a house or building belonging to another person.
True    False

 

14.                Burglary is defined as the taking of property in the possession of another person against that person’s will.
True    False

 

 

15.                Arson includes the various forms of theft, robbery, hijacking, embezzlement, and shoplifting.
True    False

 

16.                Only the receiver of a bribe can be charged with the offense of bribery.
True    False

 

17.                The crime of forgery consists of wrongfully making or altering the writings of another with the intent to defraud.
True    False

 

 

Multiple Choice Questions

18.                The law enforcement authorities of federal, state, and ­local governments enforce specific laws called:
A. action procedure.
B. guidelines.
C. enforcements.
D. statutes.

 

19.                A private wrong that causes injury to physical well-being, property, or reputation of another person is called:
A. a tort.
B. a crime.
C. an execution.
D. a misunderstanding.

 

 

20.                What makes a particular act a crime is determined by the:
A. opinions of legal scholars.
B. statutory law.
C. public opinion.
D. professors in law schools.

 

21.                A violation of a statute is a(n):
A. enforceable act.
B. tort.
C. offense.
D. crime.

 

22.                Crimes are classified into three groups according to the seriousness of the offense. They are:
A. treason, felony and larceny.
B. treason, misdemeanor and larceny.
C. treason, felony and misdemeanor.
D. misdemeanor, felony and larceny.

 

23.                Misdemeanor is a less serious offense than a:
A. felony.
B. civil wrong.
C. tort.
D. white-collar crime.

 

24.                Treason against the United States shall consist in levying:
A. war against the U.S.
B. strict penalties to the U.S. offenders.
C. anti-terrorist provisions against the U.S. offenders.
D. penalties for offenders of war.

 

 

25.                A misdemeanor is usually punished by a fine and/or imprisonment for not more than:
A. three months.
B. six months.
C. eight months.
D. a year.

 

26.                White-collar crime is related only to nonviolent crimes against businesses, usually committed by the:
A. employees.
B. employers.
C. clients.
D. customers.

 

27.                White-collar crimes typically involve:
A. force or violence.
B. neither force nor violence.
C. executives.
D. clerical workers.

 

28.                Some states have broadened the definition of arson to include the burning of a house by its owner and the destruction of property by other means of:
A. explosion.
B. vandalism.
C. mutilation.
D. enhancement.

 

29.                The using of information not available to the general public for personal gain is called:
A. importer training.
B. exporter training.
C. insider trading.
D. outsider training.

 

 

30.                Larceny is often classified as petty or grand, depending upon the:
A. time when the crime was committed.
B. person from whom it was stolen.
C. value of the stolen property.
D. court in which it was referred.

 

31.                The various forms of theft, robbery, hijacking, embezzlement, and shoplifting are known as:
A. larceny.
B. burglary.
C. plundering.
D. plotting.

 

32.                The taking of property in the possession of another person against that person’s will is known as:
A. arson
B. robbery.
C. plundering.
D. plotting.

 

33.                Robbery, burglary, shoplifting and hijacking are the various types of:
A. arson.
B. larceny.
C. felony.
D. perjury.

 

34.                Stealing merchandise from a retail store is called:
A. robbery.
B. hijacking.
C. shoplifting.
D. burglary.

 

 

35.                The crime of bribery consists of giving or taking money or property of value with the intent of:
A. recruiting someone.
B. reappraising someone.
C. appraising someone.
D. influencing someone.

 

36.                The crimes that involve activities intended to obtain goods or to deceive others by making false claims is known as false pretenses and are governed by:
A. state laws and federal laws.
B. executive orders.
C. contract laws.
D. ordinances.

 

37.                A person who makes false statements to a bank for the purpose of obtaining a loan could be prosecuted for the offense of:
A. forgery.
B. embezzlement.
C. perjury.
D. false pretense.

 

38.                The act of signing another person’s name to a credit card charge slip without his permission is considered as:
A. perjury.
B. forgery.
C. false pretense.
D. felony.

 

39.                The act of giving false information on a government form is considered as:
A. forgery.
B. felony.
C. false pretense.
D. perjury.

 

 

40.                The act of wrongfully making or altering the writings of another with the intent to defraud is known in law as:
A. fraud.
B. forgery.
C. unlawful writing.
D. cheating.

 

41.                The act of wrongfully taking money or other property that has been entrusted to a person as a part of his or her employment is known as:
A. fraud.
B. bribery.
C. forgery.
D. embezzlement.

 

42.                Frequently, persons with knowledge of computers access the credit card numbers of consumers who have made purchases on the Internet and use these credit card numbers without authorization. This act constitutes the crime of:
A. identity theft.
B. credit card fraud.
C. false pretense
D. credit card perjury.

 

43.                When an unscrupulous individual steals the name and personal information of someone else by stealing private mail, then it amounts to:
A. false pretense.
B. forgery.
C. identity theft.
D. white-collar crime.

 

 

 

Short Answer Questions

44.                Define the term “crime,” and identify and explain the three classifications of crime.

 

 

 

 

45.                Describe “white-collar crime.”

 

 

 

 

46.                White-collar crimes are often committed against businesses, but are sometimes committed by firms. Give an example of the latter.

 

 

 

 

47.                Define “insider trading.”

 

 

 

 

 

48.                Explain larceny.

 

 

 

 

 

 

 

 

 

 

True / False Questions

1.   (p. 38)The law assures each person certain rights and assigns each person certain duties.
TRUE

 

Bloom’s: Knowledge
Learning Outcomes: 3.1 Def ne crime and distinguish between crimes and torts.

2.   (p. 38)A private wrong that causes injury to another person’s physical well-being, property, or reputation is called a tort.
TRUE

 

Bloom’s: Knowledge
Learning Outcomes: 3.1 Def ne crime and distinguish between crimes and torts.

3.   (p. 38)Violation of a specific statute is a crime.
TRUE

 

Bloom’s: Knowledge
Learning Outcomes: 3.1 Def ne crime and distinguish between crimes and torts.

4.   (p. 38)A certain action can either be a tort or a crime; it can never be both.
FALSE

 

Bloom’s: Knowledge
Learning Outcomes: 3.1 Def ne crime and distinguish between crimes and torts.

 

5.   (p. 38)Crimes are classified into three groups according to the seriousness of the offense.
TRUE

 

Bloom’s: Knowledge
Learning Outcomes: 3.2 Identify the three major classifications of crimes.

6.   (p. 39)Treason is a major crime defined by the Constitution of the United States.
TRUE

 

Bloom’s: Knowledge
Learning Outcomes: 3.2 Identify the three major classifications of crimes.

7.   (p. 39)A person who commits felony may be punished with a prison sentence for not more than nine months.
FALSE

 

Bloom’s: Knowledge
Learning Outcomes: 3.2 Identify the three major classifications of crimes.

8.   (p. 39)A misdemeanor is a more serious offense than a felony.
FALSE

 

Bloom’s: Evaluation
Learning Outcomes: 3.2 Identify the three major classifications of crimes.

9.   (p. 39)A misdemeanor is a serious crime punishable by a prison sentence of more than a year.
FALSE

 

Bloom’s: Knowledge
Learning Outcomes: 3.2 Identify the three major classifications of crimes.

 

10.                (p. 40)A category of illegal activity that includes embezzlement, stock swindles, fraud against insurance companies, credit card fraud, computer fraud, and theft of computer programs is known as business-related crime.
FALSE

 

Bloom’s: Knowledge
Learning Outcomes: 3.3 Discuss several common crimes of particular concern to business and employees.

11.                (p. 40)White-collar crime is the term used to describe various crimes that typically do not involve force or violence committed by and against businesses.
TRUE

 

Bloom’s: Knowledge
Learning Outcomes: 3.3 Discuss several common crimes of particular concern to business and employees.

12.                (p. 42)The willful or malicious act of causing the burning of property belonging to another person is known as larceny.
FALSE

 

Bloom’s: Knowledge
Learning Outcomes: 3.3 Discuss several common crimes of particular concern to business and employees.

13.                (p. 41)Arson is the willful or malicious burning of a house or building belonging to another person.
TRUE

 

Bloom’s: Knowledge
Learning Outcomes: 3.3 Discuss several common crimes of particular concern to business and employees.

14.                (p. 42)Burglary is defined as the taking of property in the possession of another person against that person’s will.
FALSE

 

Bloom’s: Knowledge
Learning Outcomes: 3.3 Discuss several common crimes of particular concern to business and employees.

 

15.                (p. 41)Arson includes the various forms of theft, robbery, hijacking, embezzlement, and shoplifting.
FALSE

 

Bloom’s: Knowledge
Learning Outcomes: 3.3 Discuss several common crimes of particular concern to business and employees.

16.                (p. 42)Only the receiver of a bribe can be charged with the offense of bribery.
FALSE

 

Bloom’s: Knowledge
Learning Outcomes: 3.3 Discuss several common crimes of particular concern to business and employees.

17.                (p. 43)The crime of forgery consists of wrongfully making or altering the writings of another with the intent to defraud.
TRUE

 

Bloom’s: Knowledge
Learning Outcomes: 3.3 Discuss several common crimes of particular concern to business and employees.

 

Multiple Choice Questions

18.                (p. 38)The law enforcement authorities of federal, state, and ­local governments enforce specific laws called:
A. action procedure.
B. guidelines.
C. enforcements.
D. statutes.

 

Bloom’s: Knowledge
Learning Outcomes: 3.1 Def ne crime and distinguish between crimes and torts.

 

19.                (p. 38)A private wrong that causes injury to physical well-being, property, or reputation of another person is called:
A. a tort.
B. a crime.
C. an execution.
D. a misunderstanding.

 

Bloom’s: Knowledge
Learning Outcomes: 3.1 Def ne crime and distinguish between crimes and torts.

20.                (p. 38)What makes a particular act a crime is determined by the:
A. opinions of legal scholars.
B. statutory law.
C. public opinion.
D. professors in law schools.

 

Bloom’s: Knowledge
Learning Outcomes: 3.1 Def ne crime and distinguish between crimes and torts.

21.                (p. 38)A violation of a statute is a(n):
A. enforceable act.
B. tort.
C. offense.
D. crime.

 

Bloom’s: Knowledge
Learning Outcomes: 3.1 Def ne crime and distinguish between crimes and torts.

22.                (p. 38)Crimes are classified into three groups according to the seriousness of the offense. They are:
A. treason, felony and larceny.
B. treason, misdemeanor and larceny.
C. treason, felony and misdemeanor.
D. misdemeanor, felony and larceny.

 

Bloom’s: Knowledge
Learning Outcomes: 3.2 Identify the three major classifications of crimes.

 

23.                (p. 39)Misdemeanor is a less serious offense than a:
A. felony.
B. civil wrong.
C. tort.
D. white-collar crime.

 

Bloom’s: Knowledge
Learning Outcomes: 3.2 Identify the three major classifications of crimes.

24.                (p. 39)Treason against the United States shall consist in levying:
A. war against the U.S.
B. strict penalties to the U.S. offenders.
C. anti-terrorist provisions against the U.S. offenders.
D. penalties for offenders of war.

 

Bloom’s: Knowledge
Learning Outcomes: 3.2 Identify the three major classifications of crimes.

25.                (p. 39)A misdemeanor is usually punished by a fine and/or imprisonment for not more than:
A. three months.
B. six months.
C. eight months.
D. a year.

 

Bloom’s: Knowledge
Learning Outcomes: 3.2 Identify the three major classifications of crimes.

26.                (p. 40)White-collar crime is related only to nonviolent crimes against businesses, usually committed by the:
A. employees.
B. employers.
C. clients.
D. customers.

 

Bloom’s: Knowledge
Learning Outcomes: 3.3 Discuss several common crimes of particular concern to business and employees.

 

27.                (p. 40)White-collar crimes typically involve:
A. force or violence.
B. neither force nor violence.
C. executives.
D. clerical workers.

 

Bloom’s: Knowledge
Learning Outcomes: 3.3 Discuss several common crimes of particular concern to business and employees.

28.                (p. 41)Some states have broadened the definition of arson to include the burning of a house by its owner and the destruction of property by other means of:
A. explosion.
B. vandalism.
C. mutilation.
D. enhancement.

 

Bloom’s: Knowledge
Learning Outcomes: 3.3 Discuss several common crimes of particular concern to business and employees.

29.                (p. 40)The using of information not available to the general public for personal gain is called:
A. importer training.
B. exporter training.
C. insider trading.
D. outsider training.

 

Bloom’s: Knowledge
Learning Outcomes: 3.3 Discuss several common crimes of particular concern to business and employees.

30.                (p. 42)Larceny is often classified as petty or grand, depending upon the:
A. time when the crime was committed.
B. person from whom it was stolen.
C. value of the stolen property.
D. court in which it was referred.

 

Bloom’s: Knowledge
Learning Outcomes: 3.3 Discuss several common crimes of particular concern to business and employees.

 

31.                (p. 42)The various forms of theft, robbery, hijacking, embezzlement, and shoplifting are known as:
A. larceny.
B. burglary.
C. plundering.
D. plotting.

 

Bloom’s: Knowledge
Learning Outcomes: 3.3 Discuss several common crimes of particular concern to business and employees.

32.                (p. 42)The taking of property in the possession of another person against that person’s will is known as:
A. arson
B. robbery.
C. plundering.
D. plotting.

 

Bloom’s: Knowledge
Learning Outcomes: 3.3 Discuss several common crimes of particular concern to business and employees.

33.                (p. 42)Robbery, burglary, shoplifting and hijacking are the various types of:
A. arson.
B. larceny.
C. felony.
D. perjury.

 

Bloom’s: Knowledge
Learning Outcomes: 3.3 Discuss several common crimes of particular concern to business and employees.

34.                (p. 42)Stealing merchandise from a retail store is called:
A. robbery.
B. hijacking.
C. shoplifting.
D. burglary.

 

Bloom’s: Knowledge
Learning Outcomes: 3.3 Discuss several common crimes of particular concern to business and employees.

 

35.                (p. 42)The crime of bribery consists of giving or taking money or property of value with the intent of:
A. recruiting someone.
B. reappraising someone.
C. appraising someone.
D. influencing someone.

 

Bloom’s: Knowledge
Learning Outcomes: 3.3 Discuss several common crimes of particular concern to business and employees.

36.                (p. 43)The crimes that involve activities intended to obtain goods or to deceive others by making false claims is known as false pretenses and are governed by:
A. state laws and federal laws.
B. executive orders.
C. contract laws.
D. ordinances.

 

Bloom’s: Knowledge
Learning Outcomes: 3.3 Discuss several common crimes of particular concern to business and employees.

37.                (p. 43)A person who makes false statements to a bank for the purpose of obtaining a loan could be prosecuted for the offense of:
A. forgery.
B. embezzlement.
C. perjury.
D. false pretense.

 

Bloom’s: Knowledge
Learning Outcomes: 3.3 Discuss several common crimes of particular concern to business and employees.

 

38.                (p. 43)The act of signing another person’s name to a credit card charge slip without his permission is considered as:
A. perjury.
B. forgery.
C. false pretense.
D. felony.

 

Bloom’s: Knowledge
Learning Outcomes: 3.3 Discuss several common crimes of particular concern to business and employees.

39.                (p. 43)The act of giving false information on a government form is considered as:
A. forgery.
B. felony.
C. false pretense.
D. perjury.

 

Bloom’s: Knowledge
Learning Outcomes: 3.3 Discuss several common crimes of particular concern to business and employees.

40.                (p. 43)The act of wrongfully making or altering the writings of another with the intent to defraud is known in law as:
A. fraud.
B. forgery.
C. unlawful writing.
D. cheating.

 

Bloom’s: Knowledge
Learning Outcomes: 3.3 Discuss several common crimes of particular concern to business and employees.

 

41.                (p. 44)The act of wrongfully taking money or other property that has been entrusted to a person as a part of his or her employment is known as:
A. fraud.
B. bribery.
C. forgery.
D. embezzlement.

 

Bloom’s: Knowledge
Learning Outcomes: 3.3 Discuss several common crimes of particular concern to business and employees.

42.                (p. 44)Frequently, persons with knowledge of computers access the credit card numbers of consumers who have made purchases on the Internet and use these credit card numbers without authorization. This act constitutes the crime of:
A. identity theft.
B. credit card fraud.
C. false pretense
D. credit card perjury.

 

Bloom’s: Knowledge
Learning Outcomes: 3.3 Discuss several common crimes of particular concern to business and employees.

43.                (p. 45)When an unscrupulous individual steals the name and personal information of someone else by stealing private mail, then it amounts to:
A. false pretense.
B. forgery.
C. identity theft.
D. white-collar crime.

 

Bloom’s: Knowledge
Learning Outcomes: 3.3 Discuss several common crimes of particular concern to business and employees.

 

 

Short Answer Questions

44.                (p. 38)Define the term “crime,” and identify and explain the three classifications of crime.

A violation of a statute is a crime. Crimes may be broadly classified into treason, felony, and misdemeanor. Federal law and the laws of the states determine and specify the punishment. Treason is a major crime defined by the Constitution of the United States. A felony is a serious crime against society with a prison sentence of more than a year, or a fine. Misdemeanor is a less serious offense than a felony, punishable with fine and/or imprisonment for no more than one year.

 

Bloom’s: Knowledge
Learning Outcomes: 3.1 Def ne crime and distinguish between crimes and torts.

45.                (p. 40)Describe “white-collar crime.”

White-collar crime is the term used to describe various crimes that typically do not involve force or violence, and are committed by and against businesses. Originally, white-collar crime related only to nonviolent crimes against businesses, usually committed by their own employees. Depending on its seriousness, a white-collar crime can be either a felony or a misdemeanor and can violate federal or state law.

 

Bloom’s: Knowledge
Learning Outcomes: 3.3 Discuss several common crimes of particular concern to business and employees.

46.                (p. 40)White-collar crimes are often committed against businesses, but are sometimes committed by firms. Give an example of the latter.

Crimes committed by business firms typically include insider trading, price fixing, conspiracy in restraint of trade, and monopoly.

 

Bloom’s: Knowledge
Learning Outcomes: 3.3 Discuss several common crimes of particular concern to business and employees.

 

47.                (p. 40)Define “insider trading.”

Insider trading is the using of information not available to the general public for personal gain.

 

Bloom’s: Knowledge
Learning Outcomes: 3.3 Discuss several common crimes of particular concern to business and employees.

48.                (p. 42)Explain larceny.

Larceny is a broad term that includes most forms of theft such as, robbery, hijacking, embezzlement, and shoplifting. Larceny is often classified as petty or grand, depending upon the value of the stolen property.

 

Bloom’s: Knowledge
Learning Outcomes: 3.3 Discuss several common crimes of particular concern to business and employees.

 

Chapter 05 

True / False Questions

1.   The United States Constitution forms the basis for all American Law.
True    False

 

2.   There are three types of constitutional powers.
True    False

 

3.   Express powers are those that are specifically stated in a statute.
True    False

 

4.   The process of a court deciding whether a law is contrary to the constitution is known as judicial review.
True    False

 

5.   Each amendment of the federal constitution needs to be ratified by the legislatures of half of the 50 states.
True    False

 

6.   Since its inception, the federal Constitution of the United States has never been amended nor changed.
True    False

 

7.   The Commerce Clause creates one of the most fundamental powers of the Constitution.
True    False

 

 

8.   It is constitutionally acceptable for a municipality to pass a law limiting what a journalist could write or say about a political candidate or issue.
True    False

 

9.   The right to bear arms is unlimited.
True    False

 

10.                Under the Fourth Amendment police officers and other government officials (but not private citizens) must have probable cause to be able to conduct a personal or property search.
True    False

 

11.                If Owen refused to testify on the premise that the information he would divulge would self-incriminate him, he can legally do so under the Fifth Amendment protection.
True    False

 

12.                The Eight Amendment mandates that people accused or convicted of crimes are subject to excessive bail.
True    False

 

13.                The Eight Amendment prevents the Government from imposing an unjustly harsh fine on a person convicted of a crime.
True    False

 

14.                The Fourteenth Amendment applies to actions of the federal government.
True    False

 

 

15.                The Fourteenth Amendment provides that when states pass laws they must treat all individuals equally.
True    False

 

16.                The strict scrutiny test is a standard that measures whether the legislature had a compelling interest for enacting a particular statute
True    False

 

17.                The Sixteenth Amendment granted the federal government the power to impose and collect a tax on individuals’ incomes.
True    False

 

18.                The Sixteenth Amendment granted the federal government the power to impose and collect a tax on individuals’ incomes.
True    False

 

19.                The IRS does not improve taxpayers’ understanding of tax laws.
True    False

 

 

Multiple Choice Questions

20.                In the United States, how many types of powers do the federal Constitution and state constitutions confer on the government?
A. Eight
B. Six
C. Four
D. Two

 

 

21.                Each constitutional amendment must be proposed by a:
A. one-third vote of Congress.
B. one-fourth vote of Congress.
C. two-thirds vote of Congress.
D. three-fourths vote of Congress.

 

22.                The Constitution is divided and subdivided in all of the following EXCEPT:
A. articles.
B. sections.
C. clauses.
D. papers.

 

23.                The following are clauses of the Constitution who have a specific impact on businesses EXCEPT:
A. Commerce Clause.
B. Full Faith and Credit Clause.
C. Supremacy Clause
D. Competitive Clause

 

24.                “According to the supremacy clause, a Supreme Court ruling that involves a constitutional issue is binding on state courts.” This statement is part of which Clause or Article:
A. Article 1, Section 8, Clause 3.
B. Article IV, Section 1.
C. Article IV, Section 2.
D. Article V, Section 1.