National University

Legal Environment of Business

SAMPLE QUIZ #01

True/ False

Statement 1: The U.S. Constitution guarantees individuals the right to a fair trial.
Answer: True

Statement 2: A contract is valid only if it is in writing; oral contracts are not

legally binding.
Answer: False

Statement 3: Copyright protects the expression of ideas, not the ideas

themselves.
Answer: True

Statement 4: The Equal Pay Act requires employers to pay male and female
employees the same wage for the same work.
Answer: True

Statement 5: The doctrine of stare decisis means that courts are bound by their
own prior decisions and decisions of higher courts.
Answer: True

Statement 6: A tort is a wrongful act that causes harm to another person or their
property and for which the law provides a remedy.
Answer: True
Statement 7: The Miranda rights require law enforcement to inform individuals of
their right to remain silent and have an attorney present during interrogation.
Answer: True

Statement 8: Insider trading occurs when individuals buy or sell securities based
on material, nonpublic information.
Answer: True

Statement 9: A patent gives the inventor the exclusive right to make, use, and
sell an invention for a limited period.
Answer: True

Statement 10: The Fifth Amendment to the U.S. Constitution protects individuals
against self-incrimination.
Answer: True

Statement 11: The Family and Medical Leave Act (FMLA) requires employers to
provide eligible employees with unpaid leave for qualified medical and family
reasons.
Answer: True

Statement 12: Antitrust laws are designed to promote fair competition and
prevent monopolies.
Answer: True

Statement 13: A general partnership provides limited liability protection to its

partners.
Answer: False

Statement 14: A contract is voidable if one party was under duress at the time of
entering into the contract.
Answer: True

Statement 15: The Commerce Clause of the U.S. Constitution gives Congress
the power to regulate interstate commerce.
Answer: True

Statement 16: Res ipsa loquitur is a legal doctrine that presumes negligence
when an accident occurs and the defendant had exclusive control over the
situation.
Answer: True

Statement 17: A trademark protects the design and functionality of a product.

Answer: False

Statement 18: The burden of proof in a criminal trial is "beyond a reasonable

doubt."
Answer: True

Statement 19: The Foreign Corrupt Practices Act (FCPA) prohibits bribery of
foreign officials by individuals and companies.
Answer: True

Statement 20: Libel involves written or printed defamatory statements, while

slander involves spoken defamatory statements.
Answer: True