Question 1

1. What is the purpose of informal agency actions? A. To provide an informal means to resolve a dispute B. To provide advance notice that formal rulemaking may be forthcoming C. To rectify a dispute to the agency's satisfaction D. To allow an agency to take an administrative act against an individual or organization

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Question 2

2. Which action has the government implemented in order to minimize health care costs? A. Insurance companies are required to participate in the National Health Exchange B. Insurance companies must spend at least 80% of individual premiums on benefits or pay a rebate to the insured C. Insurance companies must spend at least 80% of individual premiums on benefits or are required to decrease rates D. Insurance companies cannot increase rates for two years and must apply for an increase after two years

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Question 3

``` 3. Which act did Congress pass in 2011 to give the Food and Drug Administration (FDA) greater authority to recall any food products suspected to be tainted? A. Consumer Food Safety Act B. Federal Food, Drug, and Cosmetic Act C. Federal Drug Administration Act D. Food Safety Modernization Act ```

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Question 4

4. A specialized debt-collection agency contacted a consumer at his home at four o'clock in the morning to collect a past due medical bill owed by the consumer's mother. During the call, the collection agency harassed and threatened the consumer if payment of the debt was not forthcoming. Which federal statute prohibits this type of collection tactic? A. The Fair Credit Reporting Act B. The Truth-in-Lending Act C. The Equal Credit Opportunity Act D. The Fair Debt Collection Practices Act

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Question 5

5. What is the purpose of the Comprehensive Environmental Response, Compensation, and Liability Act? A. To determine which forms of solid waste are considered hazardous B. To regulate the cleanup of hazardous waste disposal sites C. To prohibit the dumping and disposal of hazardous waste D. To compensate individuals impacted by leaking hazardous waste

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Question 6

6. Which act regulates the cleanup of hazardous waste disposal sites? A. Federal Insecticide, Fungicide, and Rodenticide Act B. Comprehensive Environmental Response, Compensation, and Liability Act C. Toxic Substances Control Act D. Resource Conservation and Recovery Act

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Question 7

7. What is the purpose of Section 2 of the Clayton Act? A. To prohibit exclusive dealing contracts B. To prohibit tying arrangements C. To prohibit price fixing contracts D. To prohibit price discrimination agreements

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Question 8

``` 8. A certified public accountant (CPA) is engaged to perform an audit for a company. During the course of the audit, the CPA accepts explanations from management of financial data irregularities that seem to indicate fraud. The CPA issues a clean opinion on the company's financial statements. Investors extend additional funding to the company based on the financial statements issued by the CPA. A short time later, the company declares bankruptcy and closes. The investors suffer losses and file a motion to sue the CPA for gross negligence due to fraud. Which type of fraud did this CPA engage in? A. Constructive fraud B. Professional fraud C. Material fraud D. Actual fraud ```

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Question 9

9. How does the Private Securities Litigation Reform Act of 1995 impact the liability of accountants? A. By limiting an accountant's liability to a proportionate share of the damage resulting from a wrongful act B. By ruling that an accountant is not liable for errors and omissions if the accountant acted in good faith. C. By increasing an accountant's potential liability by making the release of false and misleading reports a felony offense D. By increasing the penalty for an accountant who is found guilty of violating security laws

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Question 10

10. Which worker is eligible for unemployment compensation under the Federal Unemployment Tax Act? A. A manager who resigns from a company because a change in company vision B. A staff member who is involuntary terminated and actively seeking employment C. An independent contractor who is terminated from a long term project by a company D. An executive who us fired for workplace misconduct

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Question 11

11. Which employer requirement is included in the Davis-Bacon Act? A. Posting notices in the workplace that address the death or three or more employees from work related injury B. Paying prevailing rates to all employees paid with federal funds C. Ceasing to mandate federal contractor employees to waive their right to join a union D. Posting criteria for lost wages due to absences from work

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Question 12

12. Which act ensures employees have the right to a duly designated representative who bargains collectively on their behalf? A. Norris-LaGuardia Act B. Labor-Management Reporting and Disclosure Act C. Labor-Management Relations Act D. National Labor Relations Act

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Question 13

13. Which remedy is available to an employee who is discriminated against because of a disability, according to the Americans with Disabilities Act? A. A state employee may sue the state employer in federal court instead of a state court B. Congressional abrogation through legislation may allow a private suit in state court C. Corrective action such as mediation can reverse the act of discrimination D. The Equal Employment Opportunity Commission (EEOC) can sue on behalf of the employee

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Question 14

14. Which federal provision requires the plaintiff to show that unlawful bias is the primary reason for an adverse employment action? A. Title VII of the Civil Rights Act of 1964 B. The Equal Pay Act of 1963 C. The Civil Rights Act of 1866 D. The Age Discrimination Employment Act

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Question 15

``` 15. Candidate A is a 35 year old man with 10 years of work experience. Candidate B is a 50 year old woman with 25 years of work experience. Both candidates interview for a job at the county prison working with male prisoners. Candidate A is hired over Candidate B. Candidate B sues for discrimination. The courts finds for the prison, and the case is dismissed. Which type of discrimination defense did the prison successfully employ? A. Business necessity B. Bona fide occupational qualification C. Seniority system D. After acquired evidence of seniority E. Justifiable selection ```

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Question 16

16. Who owns the copyright for work that is completed for an employer? A. The employee and employer share ownership rights B. The employer owns the copyright for work that independent contractors complete for the employer C. Employees own the copyright for work that they complete for their employer D. Independent contractors own the copyright for work that they complete for an employer unless otherwise stated in a work for hire agreement

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Question 17

``` 17. Which act by a party terminates an agency relationship? A. Bankruptcy B. Lapse of time C. Changed circumstances D. Death or insanity ```

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Question 18

``` 18. Which type of agency relationship is formed by express consent or implied by conduct? A. Agency by operation of law B. Agency by ratification C. Agency by agreement D. Agency by estoppel ```

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Question 19

19. What is one duty of an agent to the principal in an agency relationship? A. The agent must notify the principal of information it deems important to the subject matter of the agency B. The agent must provide information obtained during the agency relationship to a third party C. The agent must employ usual and customary efforts and skill in completing the agreed upon assignment D. The agency must not represent another party in addition to the initial principal

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Question 20

20. What is one remedy for a principal against an agent who has breached fiduciary duties? A. Choosing to pursue either a contract remedy or a tort remedy, but not both B. Recovering damages from the agent for negligent conduct, if a third party wins a suit against the agent C. Recovering any benefits or profits that were obtained by virtue of the agency relationship D. Choosing the right of avoidance, thereby requiring the agent to fulfill all contracts

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Question 21

21. How does an agent exercise implied authority? A. By acting when the principal causes a third party to believe that the agent has the authority to act B. By acting in a manner indirectly understood by custom or inferred from the position the agent occupies C. By acting under the framework of clear, direct, and definite terms agreed upon by the principal D. By acting when an unforeseen emergency demands action to protect the property and the rights of the principal, and the agent is unable to communicate with the principal

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Question 22

22. How does an agent exercise apparent authority? A. By acting in a manner indirectly understood by custom or inferred from the position the agent occupies B. By acting when an unforeseen emergency demands action to protect the property and rights of the principal, and the agent is unable to communicate with the principal C. By acting when the principal causes a third party to believe that the agent has the authority to act D. By acting under the framework of clear, direct, and definite terms agreed upon by the principal

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Question 23

23. A cable repairman, who is employed by a cable company, travels to various service locations as part of his job. One afternoon, while driving to a service call, he negligently runs a stop sign and causes an accident. A woman is injured in the car accident. Who is liable to the woman for her injuries? A. The repairman and the cable commonly are liable to the woman because the repairman caused the accident B. The repairman's manager is liable to the woman because the manager is responsible for the acts of the employees C. The cable company is liable because the repairman was acting within the scope of his duties D. The repairman is liable because he caused the accident due to his negligence

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Question 24

24. Mr. A and Mr. B are partners in a COA firm. Both partners manage client bank accounts. Mr. A embezzled from a client account. Can Mr. B's personal assets be attached to pay off any financial liabilities resulting from the embezzlement? A. No. Mr. A is the principal and is wholly responsible for the financial liabilities as the principal B. No. Mr. A is an owner of the company, and there is no principal and agent relationship C. Yes. Mr. A is acting as an agent of the company; as partners, Mr. A and Mr. B share financial liabilities D. Yes. Mr. A is an agent for Mr. B; the principal will share responsibility for the financial liabilities

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