Question 1

An interlocking directorate occurs when a contract between a retailer and a wholesaler requires misleading advertising.

Accepted Answer

A) True 
 B)False

Question 2

Identify the six conditions that must be met for a contract to be legally binding.

Accepted Answer

1. An offer is made to do something or s

Question 3

The Sherman Antitrust Act was designed to prevent large businesses from stifling the competition of smaller or newer firms.

Accepted Answer

A) True 
 B)False

Question 4

The Nutrition Labeling and Education Act of 1990 requires truthful and uniform nutritional labeling on all food the FDA regulates.

Accepted Answer

A) True 
 B)False

Question 5

Another name for sin tax is excise tax.

Accepted Answer

A) True 
 B)False

Question 6

Trial courts hear cases involving criminal and civil law.

Accepted Answer

A) True 
 B)False

Question 7

If in the normal course of a job an employee creates a cartoon, the copyright belongs to the employer.

Accepted Answer

A) True 
 B)False

Question 8

Lawtown's mayor has just signed legislation requiring fire sprinklers in every public school. This is an example of

Accepted Answer

A)  common law. 
B)  statutory law. 
C)  administrative law. 
D)  unwritten law. 
A)  common law. 
B)  statutory law. 
C)  administrative law. 
D)  unwritten law.

Question 9

Under contract law, damages are the monetary settlements awarded to a person who is injured by a breach of contract.

Accepted Answer

A) True 
 B)False

Question 10

The Constitution gives the judiciary the power to establish bankruptcy laws.

Accepted Answer

A) True 
 B)False

Question 11

A company has to be insolvent before it can file for Chapter 11 bankruptcy.

Accepted Answer

A) True 
 B)False

Question 12

A patent gives inventors exclusive rights to their inventions for 20 years.

Accepted Answer

A) True 
 B)False

Question 13

Requiring a Tire Warehouse to carry AutoPRO Performance Tires in order to sell AutoPRO Performance Batteries is prohibited by the Robinson-Patman Act.

Accepted Answer

A) True 
 B)False

Question 14

The primary objective of a tax credit is to encourage businesses to behave in certain ways. One example is offering a tax credit to automobile manufacturers for the purchase of robotics used in the manufacture of automobiles.

Accepted Answer

A) True 
 B)False

Question 15

When McDonald's lost a lawsuit to a person severely burned by hot coffee, McDonald's was found to be guilty of

Accepted Answer

A)  negligence. 
B)  liable. 
C)  intentional tort violation. 
D)  packaging liability. 
A)  negligence. 
B)  liable. 
C)  intentional tort violation. 
D)  packaging liability.

Question 16

In 1978, a 13-year-old boy was severely burned in a rear-end collision involving a Ford Pinto. The case went to court and Ford was ordered to pay $125 million in punitive damages based on the legal principle of

Accepted Answer

A)  product discrimination. 
B)  product liability. 
C)  breach of contract. 
D)  exclusive dealing. 
A)  product discrimination. 
B)  product liability. 
C)  breach of contract. 
D)  exclusive dealing.

Question 17

Common law is based on the precedent of earlier court decisions.

Accepted Answer

A) True 
 B)False

Question 18

The Sherman Antitrust Act forbids actual monopolies or attempts to monopolize any part of commerce.

Accepted Answer

A) True 
 B)False

Question 19

Mateo had a very successful year. His small corporation earned over $5,000,000. His company will have to pay part of its income to the federal government for income taxes.

Accepted Answer

A) True 
 B)False

Question 20

The Nike swoosh and the McDonald's golden arches are examples of corporate trademarks.

Accepted Answer

A) True 
 B)False

Exam 21: Working Within the Legal Environment

An interlocking directorate occurs when a contract between a retailer and a wholesaler requires misleading advertising.

Identify the six conditions that must be met for a contract to be legally binding.

The Sherman Antitrust Act was designed to prevent large businesses from stifling the competition of smaller or newer firms.

The Nutrition Labeling and Education Act of 1990 requires truthful and uniform nutritional labeling on all food the FDA regulates.

Another name for sin tax is excise tax.

Trial courts hear cases involving criminal and civil law.

If in the normal course of a job an employee creates a cartoon, the copyright belongs to the employer.

Lawtown's mayor has just signed legislation requiring fire sprinklers in every public school. This is an example of

Under contract law, damages are the monetary settlements awarded to a person who is injured by a breach of contract.

The Constitution gives the judiciary the power to establish bankruptcy laws.

A company has to be insolvent before it can file for Chapter 11 bankruptcy.

A patent gives inventors exclusive rights to their inventions for 20 years.

Requiring a Tire Warehouse to carry AutoPRO Performance Tires in order to sell AutoPRO Performance Batteries is prohibited by the Robinson-Patman Act.

The primary objective of a tax credit is to encourage businesses to behave in certain ways. One example is offering a tax credit to automobile manufacturers for the purchase of robotics used in the manufacture of automobiles.

When McDonald's lost a lawsuit to a person severely burned by hot coffee, McDonald's was found to be guilty of

In 1978, a 13-year-old boy was severely burned in a rear-end collision involving a Ford Pinto. The case went to court and Ford was ordered to pay $125 million in punitive damages based on the legal principle of

Common law is based on the precedent of earlier court decisions.

The Sherman Antitrust Act forbids actual monopolies or attempts to monopolize any part of commerce.

Mateo had a very successful year. His small corporation earned over $5,000,000. His company will have to pay part of its income to the federal government for income taxes.

The Nike swoosh and the McDonald's golden arches are examples of corporate trademarks.

Taking Risks and Making Profits Within the Dynamic Business Environment

Understanding Economics and How It Affects Business

Doing Business in Global Markets

Demanding Ethical and Socially Responsible Behavior

How to Form a Business

Entrepreneurship and Starting a Small Business

Management and Leadership

Structuring Organizations for Todays Challenges

Production and Operations Management

Motivating Employees

Human Resource Management: Finding and Keeping the Best Employees

Dealing With Employeemanagement Issues

Marketing: Helping Buyers Buy

Developing and Pricing Goods and Services

Distributing Products

Using Effective Promotions

Understanding Accounting and Financial Information

Financial Management

Using Securities Markets for Financing and Investing Opportunities

Money, Financial Institutions, and the Federal Reserve

Using Technology to Manage Information

Managing Risk

Managing Personal Finances

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