Question 1

Money collected from excise taxes goes toward a specific purpose.

Accepted Answer

A) True 
 B)False

Question 2

We count on companies to provide us with safe products, and to provide us with full disclosure if they are using potentially harmful chemicals in the production and distribution of their products. Under ________, if in a court of law it is proven that a well-known fast food chain is using a potentially harmful chemical in the preparation of their fries, the company is likely to be required to disclose information on this process to its customers.

Accepted Answer

A)  strict product liability 
B)  patent infringement 
C)  statutory law 
D)  trademark law 
A)  strict product liability 
B)  patent infringement 
C)  statutory law 
D)  trademark law

Question 3

Specific performance means that a person who violates a contract is required to live up to the agreement even if money damages are adequate.

Accepted Answer

A) True 
 B)False

Question 4

A patent protects an inventor's right to a product or process.

Accepted Answer

A) True 
 B)False

Question 5

Administrative agencies are given the power by Congress to pass rules and regulations within a specific area of authority.

Accepted Answer

A) True 
 B)False

Question 6

The branch of the government responsible for overseeing the legal system is the

Accepted Answer

A)  judiciary. 
B)  executive. 
C)  legislative. 
D)  administrative. 
A)  judiciary. 
B)  executive. 
C)  legislative. 
D)  administrative.

Question 7

The regulation of marriages and payments for personal injuries is covered by

Accepted Answer

A)  civil law. 
B)  criminal law. 
C)  appellate law. 
D)  legislative law. 
A)  civil law. 
B)  criminal law. 
C)  appellate law. 
D)  legislative law.

Question 8

Tort law includes product liability cases.

Accepted Answer

A) True 
 B)False

Question 9

Congress prohibited discrimination against people with physical disabilities when they enacted the Americans with Disabilities Act. This is an example of common law.

Accepted Answer

A) True 
 B)False

Question 10

Lower courts must abide by the precedents set by higher courts.

Accepted Answer

A) True 
 B)False

Question 11

The use of tying contracts was prohibited by the Clayton Act of 1914 because these contracts

Accepted Answer

A)  required retailers to use false and misleading advertising. 
B)  required retailers to purchase unwanted items in order to purchase desired items. 
C)  forced households to buy wanted products in order to buy a desired product. 
D)  forced competitors into price discrimination agreements. 
A)  required retailers to use false and misleading advertising. 
B)  required retailers to purchase unwanted items in order to purchase desired items. 
C)  forced households to buy wanted products in order to buy a desired product. 
D)  forced competitors into price discrimination agreements.

Question 12

The warranty you receive in the box with a toaster is an express warranty.

Accepted Answer

A) True 
 B)False

Question 13

Implied warranties are guarantees legally imposed on the seller.

Accepted Answer

A) True 
 B)False

Question 14

The offer of a 3-year or 36,000-mile warranty by a car dealer on a new vehicle is an example of an implied warranty.

Accepted Answer

A) True 
 B)False

Question 15

________ are the largest source of tax income received by the federal government.

Accepted Answer

A)  Income taxes 
B)  Property taxes 
C)  Sales taxes 
D)  Excise taxes 
A)  Income taxes 
B)  Property taxes 
C)  Sales taxes 
D)  Excise taxes

Question 16

The purpose of governmental deregulation is to eliminate laws that seem to hinder competition.

Accepted Answer

A) True 
 B)False

Question 17

What is the Uniform Commercial Code and why is it important?

Accepted Answer

The Uniform Commercial Code (UCC) is a c

Question 18

The purpose of the Sherman Antitrust Act was to

Accepted Answer

A)  encourage competition by restraining the growth of monopolies. 
B)  standardize the level of competition. 
C)  encourage the growth of large-scale efficiency found in big businesses. 
D)  minimize the inconsistency of multiple dealers of a single product. 
A)  encourage competition by restraining the growth of monopolies. 
B)  standardize the level of competition. 
C)  encourage the growth of large-scale efficiency found in big businesses. 
D)  minimize the inconsistency of multiple dealers of a single product.

Question 19

The Robinson-Patman Act applies only to business-to-business transactions.

Accepted Answer

A) True 
 B)False

Question 20

________ is the process of eliminating laws and regulations that hinder competition.

Accepted Answer

A)  Downsizing 
B)  Restructuring 
C)  Deregulation 
D)  Reregulation 
A)  Downsizing 
B)  Restructuring 
C)  Deregulation 
D)  Reregulation

Exam 21: Working Within the Legal Environment

Money collected from excise taxes goes toward a specific purpose.

Specific performance means that a person who violates a contract is required to live up to the agreement even if money damages are adequate.

A patent protects an inventor's right to a product or process.

Administrative agencies are given the power by Congress to pass rules and regulations within a specific area of authority.

The branch of the government responsible for overseeing the legal system is the

The regulation of marriages and payments for personal injuries is covered by

Tort law includes product liability cases.

Congress prohibited discrimination against people with physical disabilities when they enacted the Americans with Disabilities Act. This is an example of common law.

Lower courts must abide by the precedents set by higher courts.

The use of tying contracts was prohibited by the Clayton Act of 1914 because these contracts

The warranty you receive in the box with a toaster is an express warranty.

Implied warranties are guarantees legally imposed on the seller.

The offer of a 3-year or 36,000-mile warranty by a car dealer on a new vehicle is an example of an implied warranty.

________ are the largest source of tax income received by the federal government.

The purpose of governmental deregulation is to eliminate laws that seem to hinder competition.

What is the Uniform Commercial Code and why is it important?

The purpose of the Sherman Antitrust Act was to

The Robinson-Patman Act applies only to business-to-business transactions.

________ is the process of eliminating laws and regulations that hinder competition.

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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