Question: Good Samaritan statutes impose liability upon people for refusing to stop at accident scenes.

Answer Choices: A. True
B. False

Answer: B. False

 

Question: Which of the following establishes how a franchise agreement will be terminated?

Answer Choices: A. The franchise agreement
B. The Franchise Termination Act
C. The Franchisor-Franchisee Protection Act
D. The Franchisee Protection Act
E. The Franchise Wrap-Up Act

Answer: A. The franchise agreement

 

Question: If ease of formation is the priority, which organizational format should PJ choose?

Answer Choices: A. Sole proprietorship
B. Limited partnership
C. Limited liability partnership
D. Corporation
E. Limited liability company

Answer: A. Sole proprietorship

 

Question: Which of the following is not a type of partnership?

Answer Choices: A. Limited partnerships
B. General partnerships
C. Limited liability partnerships
D. Limited liability company
E. Cooperative

Answer: D. Limited liability company

 

Question: Punitive damages are most likely to be awarded against Naomie if:

Answer Choices: A. The court finds Naomie committed gross negligence
B. The court believes punitive damages are compensatory
C. The judge disagrees with Naomie’s behavior
D. The plaintiff asks for punitive damages
E. Naomie committed simple negligence

Answer: A. The court finds Naomie committed gross negligence

 

Question: In some situations, the law specifies the duty of care one individual owes to another.

Answer Choices: A. True
B. False

Answer: A. True

 

Question: Which of the following is not true in regards to strict liability?

Answer Choices: A. It is liability without fault
B. It involves a risk of serious harm
C. It cannot be safely undertaken
D. Plaintiffs always receive punitive damages
E. It is not usually performed in the immediate community

Answer: D. Plaintiffs always receive punitive damages

 

Question: Which of the following statements is false regarding a general partnership?

Answer Choices: A. It is easy to create
B. Income is personal income
C. Losses can be deducted
D. Partners are considered agents
E. Partners do not have personal liability

Answer: E. Partners do not have personal liability

 

Question: When ___ applies, the plaintiff is not required to show that a reasonable person would exercise a heightened duty of care.

Answer Choices: A. Strict liability
B. Negligence per se
C. Res ipsa loquitur
D. Modified negligence
E. Actual harm doctrine

Answer: C. Res ipsa loquitur

 

Question: The ___ are responsible for managing the business of a corporation.

Answer Choices: A. Investors
B. Shareholders
C. Officers
D. Administrators
E. Members of the board of directors

Answer: E. Members of the board of directors

 

Question: The severity of potential harm is a factor in determining whether a reasonable person would have owed a duty to others.

Answer Choices: A. True
B. False

Answer: A. True

 

Question: In a ___, general partners assume unlimited liability, and limited partners assume liability up to their investment.

Answer Choices: A. Limited partnership
B. Limited corporation
C. Sole proprietor
D. Limited liability company
E. Corporation

Answer: A. Limited partnership

 

Question: What is the correct term for the investor-owners of a corporation?

Answer Choices: A. Profit owners
B. Profit and loss owners
C. Approved investors
D. Limited partners
E. Shareholders

Answer: E. Shareholders

 

Question: Implied assumption of the risk occurs when the plaintiff expressly agrees, usually in a written contract, to assume the risk posed by the defendant’s behavior.

Answer Choices: A. True
B. False

Answer: B. False

 

Question: Shareholders hire the officers of a corporation.

Answer Choices: A. True
B. False

Answer: B. False

 

Question: Negligent torts involve failure to exercise ___ care to protect another’s person or property.

Answer Choices: A. Thoughtful
B. Superior
C. Reasonable
D. Limited
E. Substantial

Answer: C. Reasonable

 

Question: “Negligence per se” means:

Answer Choices: A. Professional negligence
B. Selective negligence
C. Negligence determined
D. Negligence in or of itself
E. Actionable negligence

Answer: D. Negligence in or of itself