Exam 21: Working Within the Legal Environment

When Bryan and Lizzie got married they wanted to travel, buy nice houses and cars, and enjoy the good life. They used credit cards to finance their lifestyle, believing they would be fine as long as they could make the minimum payments. One day they discovered that because of rising interest rates, even the minimum payments were out of reach. They decided to declare Chapter 13 bankruptcy. Under this plan, they will have to pay their creditors back over 3 to 5 years.

Negligence, in tort law, deals with behavior that causes intentional harm or injury.

Statutory law refers to written legislation.

In which of the following does the creditor start legal procedures?

Explain two of the major U.S. antitrust laws.

Big Johnson Products charges Moe's Meats a lower price for goods because Moe and Johnson play golf together regularly. Big Johnson charges other firms similar to Moe's Meats more for the same products and this is beginning to hurt the business of the other firms. In fact, Moe's Meats is taking so much business away from the others due to its lower prices that the other firms are in danger of going out of business. This is an example of

In order to be legally binding, a contract must be a written agreement between two or more parties.

The primary objective of a sin tax is to generate additional revenue for the government.

The Class Action Fairness Act is a first step toward setting limits on the amount of damages for which companies are liable should their products harm consumers.

Deregulation has always benefited consumers.

A patient injured through the negligence of a health care provider can be awarded compensation through the tort law system.

Intentional and unintentional behavior that causes harm or injury is an example of a tort.

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

Mini-Case Nolan and Sadie have just opened a new restaurant on the edge of town, Cajun Kitchen. They own the land and building and have a brand-new kitchen as well as a lovely seating area, filled with mementos from the South. They have a liquor license and make wonderful Southern drinks. They are quite pleased that members of the community are helping their business grow by coming in for a meal or a drink after work. They are good businesspeople who pay their bills on time and as a result have great relationships with the vendors that supply them food. -As it turns out, Nolan and Sadie's good fortune with the restaurant has caused their competitors to lose business. In fact, Cajun Kitchen has been so successful that two other nearby restaurants are in danger of going out of business. Nolan and Sadie have

Business and government do not need to work together to create a competitive environment that is fair and open since global competition is increasing.

Your 15-year-old brother comes home with the great news that he has decided to buy his first car and has just agreed to give $10,000 to someone on Craig's List. He signed the contract and just needs to pay the seller and pick up the car. Your dad is upset and calls the seller to tell him your brother will not be buying the car. What can the seller do?

An intentional tort is a willful act that results in injury.

When your younger brother signs the back of his paycheck and gives it to you in payment for money he owes you, he has endorsed the check, and you may deposit it in your checking account.

________ is the legal process by which a person, business, or government entity unable to meet financial obligations is relieved of those debts.

Which of the following prohibits monopolies, attempts to monopolize, and any restraint of trade?