Question 1

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 2

Criminal law defines crimes, establishes punishments, and includes payment for personal injury.

Accepted Answer

A) True 
 B)False

Question 3

Under contract law, duress means the presence of coercion through force or threat of force.

Accepted Answer

A) True 
 B)False

Question 4

A warranty guarantees that:

Accepted Answer

A)  the seller will replace or repair the product at no charge if the customer finds a cheaper substitute. 
B)  the buyer has read and understood the information provided in the owner's manual. 
C)  consumers will have access to a customer complaint resolution hot line. 
D)  the product sold will be acceptable for the purpose for which the buyer intends to use it. 
A)  the seller will replace or repair the product at no charge if the customer finds a cheaper substitute. 
B)  the buyer has read and understood the information provided in the owner's manual. 
C)  consumers will have access to a customer complaint resolution hot line. 
D)  the product sold will be acceptable for the purpose for which the buyer intends to use it.

Question 5

The Justice Department's antitrust division serves as a watchdog for violations of the Uniform Commercial Code.

Accepted Answer

A) True 
 B)False

Question 6

The Uniform Commercial Code establishes a standardized set of regulations for business transactions in all 50 states.

Accepted Answer

A) True 
 B)False

Question 7

The Maricopa County Planning Commission is an example of a local administrative agency. It oversees land-use proposals and other long-range issues in Maricopa County, Arizona.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Companies that produced lead-based paint 30 years ago are still subject to the strict product liability provisions of federal tort law.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Without the permission of the inventor, Cheatum Automobile Manufacturing copied the engine design of an innovative competitor. Cheatum is guilty of:

Accepted Answer

A)  corporate liability. 
B)  trademark infringement. 
C)  profit minimization. 
D)  patent infringement. 
A)  corporate liability. 
B)  trademark infringement. 
C)  profit minimization. 
D)  patent infringement.

Question 12

The Robinson-Patman Act prohibits price discrimination in all transactions except business-to-business transactions.

Accepted Answer

A) True 
 B)False

Question 13

Negotiable instruments provide a conditional promise to pay a specified amount of money.

Accepted Answer

A) True 
 B)False

Question 14

You and your boss agree to terminate your employment contract because you want to devote more time to school. This breach of contract would likely be resolved by:

Accepted Answer

A)  a specific performance requirement. 
B)  the payment of damages. 
C)  a judge. 
D)  a discharge of obligation. 
A)  a specific performance requirement. 
B)  the payment of damages. 
C)  a judge. 
D)  a discharge of obligation.

Question 15

Appellate courts hear the appeals of decisions made at the trial court level brought by the losing party in the case.

Accepted Answer

A) True 
 B)False

Question 16

The Clayton Act of 1914 prohibits price discrimination.

Accepted Answer

A) True 
 B)False

Question 17

When a local restaurant offers a discount to senior citizens, they have violated the price discrimination provisions of the Robinson-Patman Act.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

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 20

Deregulation has always benefited consumers.

Accepted Answer

A) True 
 B)False

Exam 22: Extension: Working Within the Legal Environment

The purpose of the Sherman Antitrust Act was to:

Criminal law defines crimes, establishes punishments, and includes payment for personal injury.

Under contract law, duress means the presence of coercion through force or threat of force.

A warranty guarantees that:

The Justice Department's antitrust division serves as a watchdog for violations of the Uniform Commercial Code.

The Uniform Commercial Code establishes a standardized set of regulations for business transactions in all 50 states.

The Maricopa County Planning Commission is an example of a local administrative agency. It oversees land-use proposals and other long-range issues in Maricopa County, Arizona.

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

Companies that produced lead-based paint 30 years ago are still subject to the strict product liability provisions of federal tort law.

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

Without the permission of the inventor, Cheatum Automobile Manufacturing copied the engine design of an innovative competitor. Cheatum is guilty of:

The Robinson-Patman Act prohibits price discrimination in all transactions except business-to-business transactions.

Negotiable instruments provide a conditional promise to pay a specified amount of money.

You and your boss agree to terminate your employment contract because you want to devote more time to school. This breach of contract would likely be resolved by:

Appellate courts hear the appeals of decisions made at the trial court level brought by the losing party in the case.

The Clayton Act of 1914 prohibits price discrimination.

When a local restaurant offers a discount to senior citizens, they have violated the price discrimination provisions of the Robinson-Patman Act.

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

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

Deregulation has always benefited consumers.

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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