Question 1

The number of Americans filing for bankruptcy has decreased as a result of the Bankruptcy Reform Act.

Accepted Answer

A) True 
 B)False

Question 2

If Toni agrees to sing at Brad's wedding for free and then doesn't show up, Brad may sue Toni for breach of contract.

Accepted Answer

A) True 
 B)False

Question 3

The recent lawsuits against the tobacco industry are examples of tort law.

Accepted Answer

A) True 
 B)False

Question 4

One result of deregulation in the airline industry has been:

Accepted Answer

A)  less-intense competition. 
B)  increased aviation-related fatalities. 
C)  higher prices for consumers. 
D)  lower prices for consumers. 
A)  less-intense competition. 
B)  increased aviation-related fatalities. 
C)  higher prices for consumers. 
D)  lower prices for consumers.

Question 5

Identify and discuss 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 6

__________ 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 7

The intent of a patent is to:

Accepted Answer

A)  increase competition in the marketplace. 
B)  reward innovation and hard work of inventors. 
C)  slow the growth of monopolies. 
D)  encourage copycat inventions. 
A)  increase competition in the marketplace. 
B)  reward innovation and hard work of inventors. 
C)  slow the growth of monopolies. 
D)  encourage copycat inventions.

Question 8

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

Accepted Answer

A)  Emancipation 
B)  Financial release 
C)  Negligence 
D)  Bankruptcy 
A)  Emancipation 
B)  Financial release 
C)  Negligence 
D)  Bankruptcy

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Mini-Case
Brian and Sondra have just opened a new Cajun restaurant on the edge of town, Cajun Cookin' Inc. 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, Brian and Sondra's good fortune with the restaurant has caused their competitors to lose business. In fact, Cajun Cookin' has been so successful that two other nearby restaurants are in danger of going out of business. Brian and Sondra have:

Accepted Answer

A)  engaged in anti-competitive behavior. 
B)  violated the Sherman Antitrust Act. 
C)  engaged in price discrimination. 
D)  done nothing against the law. 
A)  engaged in anti-competitive behavior. 
B)  violated the Sherman Antitrust Act. 
C)  engaged in price discrimination. 
D)  done nothing against the law.

Question 11

The remedy for a tort is:

Accepted Answer

A)  imprisonment. 
B)  a breach of contract. 
C)  bankruptcy. 
D)  monetary compensation. 
A)  imprisonment. 
B)  a breach of contract. 
C)  bankruptcy. 
D)  monetary compensation.

Question 12

Recent legislation encourages the use of submarine patents.

Accepted Answer

A) True 
 B)False

Question 13

If a contract is to be legally binding, both parties must give consideration.

Accepted Answer

A) True 
 B)False

Question 14

The Federal Trade Commission Act prohibits unfair methods of competition.

Accepted Answer

A) True 
 B)False

Question 15

In order for a contract to be legal, mutual acceptance is achieved when one party is under duress.

Accepted Answer

A) True 
 B)False

Question 16

The Federal Trade Commission enforces laws and guidelines regarding unfair business practices.

Accepted Answer

A) True 
 B)False

Question 17

Laws regulating marriage and the payment for personal injuries are part of our body of civil law.

Accepted Answer

A) True 
 B)False

Question 18

Regulations covering sales, checks, bank deposits and bills of lading are contained in the Uniform Commercial Code.

Accepted Answer

A) True 
 B)False

Question 19

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 20

When the airline industry was deregulated in 1980 consumers benefited because airlines established new routes and charged lower fares.

Accepted Answer

A) True 
 B)False

Exam 22: Extension: Working Within the Legal Environment

The number of Americans filing for bankruptcy has decreased as a result of the Bankruptcy Reform Act.

If Toni agrees to sing at Brad's wedding for free and then doesn't show up, Brad may sue Toni for breach of contract.

The recent lawsuits against the tobacco industry are examples of tort law.

One result of deregulation in the airline industry has been:

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

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

The intent of a patent is to:

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

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

The remedy for a tort is:

Recent legislation encourages the use of submarine patents.

If a contract is to be legally binding, both parties must give consideration.

The Federal Trade Commission Act prohibits unfair methods of competition.

In order for a contract to be legal, mutual acceptance is achieved when one party is under duress.

The Federal Trade Commission enforces laws and guidelines regarding unfair business practices.

Laws regulating marriage and the payment for personal injuries are part of our body of civil law.

Regulations covering sales, checks, bank deposits and bills of lading are contained in the Uniform Commercial Code.

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.

When the airline industry was deregulated in 1980 consumers benefited because airlines established new routes and charged lower fares.

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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