Question 1

Traditionally, taxes have been used as a source of funding for government operations and programs.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

Which of the following describes the requirement that both parties in a legally binding contract must give something of value?

Accepted Answer

A)  competent parties 
B)  mutual acceptance 
C)  consideration 
D)  legal purpose 
A)  competent parties 
B)  mutual acceptance 
C)  consideration 
D)  legal purpose

Question 4

Administrative agencies actually have a greater impact on businesses than courts do.

Accepted Answer

A) True 
 B)False

Question 5

Contract law is a set of laws that covers sales laws and other commercial laws.

Accepted Answer

A) True 
 B)False

Question 6

The most popular form of bankruptcy among individuals is Chapter 11.

Accepted Answer

A) True 
 B)False

Question 7

A patent gives inventors exclusive rights to their inventions for:

Accepted Answer

A)  20 months. 
B)  17 years. 
C)  20 years. 
D)  the lifetime of the inventor plus 50 years. 
A)  20 months. 
B)  17 years. 
C)  20 years. 
D)  the lifetime of the inventor plus 50 years.

Question 8

The U.S. court system is organized solely at the federal and state levels.

Accepted Answer

A) True 
 B)False

Question 9

Business law is enforceable by the courts.

Accepted Answer

A) True 
 B)False

Question 10

About __________ percent of patent applications are approved.

Accepted Answer

A)  30 
B)  40 
C)  50 
D)  60 
A)  30 
B)  40 
C)  50 
D)  60

Question 11

The Sarbanes-Oxley Act requires CEOs to verify the accuracy of their firms' financial statements to the SEC.

Accepted Answer

A) True 
 B)False

Question 12

The Nike Swoosh and the McDonald's Golden Arches are examples of corporate trademarks.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A)  Clayton Act 
B)  Sherman Act 
C)  Robinson-Patman Act 
D)  Wheeler-Lea Amendment 
A)  Clayton Act 
B)  Sherman Act 
C)  Robinson-Patman Act 
D)  Wheeler-Lea Amendment

Question 14

Patent owners are prohibited from selling or licensing their patent rights to others.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

Which of the following holds a company liable for damages caused by a defective product even if the firm was unaware of the defect at the time of sale?

Accepted Answer

A)  network responsibility 
B)  managerial liability 
C)  patent infringement 
D)  strict product liability 
A)  network responsibility 
B)  managerial liability 
C)  patent infringement 
D)  strict product liability

Question 17

When a person's or company's behavior causes unintentional harm or injury to others they are said to be __________ in tort law.

Accepted Answer

A)  out-of-control 
B)  liable 
C)  negligent 
D)  purposeful 
A)  out-of-control 
B)  liable 
C)  negligent 
D)  purposeful

Question 18

It appears that some regulation of business is necessary to ensure fair and honest dealings with the public.

Accepted Answer

A) True 
 B)False

Question 19

When Sam and Marie 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.

Accepted Answer

A) True 
 B)False

Question 20

You agree to sell your car to your neighbor for $5,000. You and your neighbor have provided each other:

Accepted Answer

A)  duress. 
B)  consideration. 
C)  an endorsement. 
D)  an expressed warranty. 
A)  duress. 
B)  consideration. 
C)  an endorsement. 
D)  an expressed warranty.

Exam 22: Extension: Working Within the Legal Environment

Traditionally, taxes have been used as a source of funding for government operations and programs.

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

Which of the following describes the requirement that both parties in a legally binding contract must give something of value?

Administrative agencies actually have a greater impact on businesses than courts do.

Contract law is a set of laws that covers sales laws and other commercial laws.

The most popular form of bankruptcy among individuals is Chapter 11.

A patent gives inventors exclusive rights to their inventions for:

The U.S. court system is organized solely at the federal and state levels.

Business law is enforceable by the courts.

About __________ percent of patent applications are approved.

The Sarbanes-Oxley Act requires CEOs to verify the accuracy of their firms' financial statements to the SEC.

The Nike Swoosh and the McDonald's Golden Arches are examples of corporate trademarks.

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

Patent owners are prohibited from selling or licensing their patent rights to others.

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

Which of the following holds a company liable for damages caused by a defective product even if the firm was unaware of the defect at the time of sale?

When a person's or company's behavior causes unintentional harm or injury to others they are said to be __________ in tort law.

It appears that some regulation of business is necessary to ensure fair and honest dealings with the public.

You agree to sell your car to your neighbor for $5,000. You and your neighbor have provided each other:

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 Union and 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

Managing the Marketing Mix: Product, Price, Place and Promotion

Extension: Using Technology to Manage Information

Extension: Managing Risk

Extension: Managing Personal Finances

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