BUSINESS LAW Practice Test

The constitution prohibits state governments from denying any person the equal protection of the law.
TRUE or FALSE?

True

For an act to be considered a crime, it is necessary that some person be harmed.
TRUE or FALSE?

False

Careless actions that result in injuries to others usually are not deemed to be torts.
TRUE or FALSE?

False

If a principal is a minor and the agent is an adult, the agent can only create a voidable contract on behalf of the principal.
TRUE or FALSE?

True

In the partially disclosed principal situation, the agent is considered a party to the contract.
TRUE or FALSE?

True

A system in which a central government is given power to administer to national concerns and individual states administer local concerns called:
a. bicameral.
b. constitutional.
c. federal.
d. tripartite

c federal

Conspiracy means _______ committing a criminal act.
a. thinking about
b. an agreement aimed at
c. thinking with others about
d. all of the above

B an agreement aimed at

Torts are classified as:
a. intentional only.
b. negligence only.
c. strict liability only.
d. intentional, negligence, and strict liability.

uD. intentional, negligence, and strict liability.

A party working for and under the control of another and authorized to enter into contracts for that other person or entity is called an:
a. employee.
b. agent.
c. independent contractor.
d. attorney.

B agent

When a business owner uses an independent contractor to perform nonhazardous work, the owner ordinarily is:
a. not liable for harm to third persons or their property.
b. not bound to contracts made by the independent contractor.
c. not liable for the negligence of employees of the independent contractor.
d. all of the above

All of the above