Question 1

Administrative agencies primarily set policy through the issuance of rules and regulations.

Accepted Answer

A) True 
 B)False  True

Question 2

The purpose of antitrust laws is to:

Accepted Answer

A)  promote competition among businesses. 
B)  promote a monopoly for flourishing businesses. 
C)  provide legal exceptions for businesses that are flourishing. 
D)  promote restraint of trade within the state. 
A)  promote competition among businesses. 
B)  promote a monopoly for flourishing businesses. 
C)  provide legal exceptions for businesses that are flourishing. 
D)  promote restraint of trade within the state. A

Question 3

Private citizens are entitled to sue on the basis of the Water Pollution and Control Act.

Accepted Answer

A) True 
 B)False  True

Question 4

Define regulatory and nonregulatory administrative agencies.

Accepted Answer

Regulatory agencies govern the economic

Question 5

Generally, it is the activity itself, not its effect, which is the most important element in deciding whether the Sherman Act has been violated.

Accepted Answer

A) True 
 B)False

Question 6

ANZ Inc., a cement manufacturer, releases hazardous chemicals into the atmosphere and also into nearby streams. The pollutants released into the atmosphere exceed acceptable levels and the company is facing a suit from the residents of nearby towns. Under which of the following acts can the company be sued?

Accepted Answer

A)  Sherman Act 
B)  Clayton Act 
C)  Resource Conservation and Recovery Act 
D)  Clean Air Act 
A)  Sherman Act 
B)  Clayton Act 
C)  Resource Conservation and Recovery Act 
D)  Clean Air Act

Question 7

Which of the following is true of administrative agencies?

Accepted Answer

A)  They can be run only by a single administrator. 
B)  They have the power to regulate but not implement laws. 
C)  They can become specialists in a particular area of regulation. 
D)  They are always administered by a committee. 
A)  They can be run only by a single administrator. 
B)  They have the power to regulate but not implement laws. 
C)  They can become specialists in a particular area of regulation. 
D)  They are always administered by a committee.

Question 8

Activities that are illegal regardless of their effect are known as _____.

Accepted Answer

A)  per se violations 
B)  multiple-party violations 
C)  compensatory violations 
D)  antitrust violations 
A)  per se violations 
B)  multiple-party violations 
C)  compensatory violations 
D)  antitrust violations

Question 9

Regulatory agencies can use the licensing power to:

Accepted Answer

A)  regulate prices that a business may charge. 
B)  determine whether the activity of the entity regulated is acceptable or not. 
C)  allow a business to enter the field being regulated. 
D)  enable a business to enlist in the stock exchange. 
A)  regulate prices that a business may charge. 
B)  determine whether the activity of the entity regulated is acceptable or not. 
C)  allow a business to enter the field being regulated. 
D)  enable a business to enlist in the stock exchange.

Question 10

Government regulates business by means of antitrust laws that seek to promote competition among businesses.

Accepted Answer

A) True 
 B)False

Question 11

The power of a regulatory agency to fix the prices that a business may charge is known as _____.

Accepted Answer

A)  rate-making power 
B)  licensing power 
C)  power over business practices 
D)  liability power 
A)  rate-making power 
B)  licensing power 
C)  power over business practices 
D)  liability power

Question 12

Which of the following is true of The Water Pollution and Control Act?

Accepted Answer

A)  It cannot block or overrule the issuance of permits under the law. 
B)  It sets limits on discharges, including pollutants into sewer systems. 
C)  It prevents citizens from filing criminal claims. 
D)  It regulates the generation, storage, and transportation of hazardous waste. 
A)  It cannot block or overrule the issuance of permits under the law. 
B)  It sets limits on discharges, including pollutants into sewer systems. 
C)  It prevents citizens from filing criminal claims. 
D)  It regulates the generation, storage, and transportation of hazardous waste.

Question 13

The Federal Trade Commission and the Environmental Protection Agency are examples of _____ agencies.

Accepted Answer

A)  nonregulatory 
B)  regulatory 
C)  nonadministrative 
D)  private 
A)  nonregulatory 
B)  regulatory 
C)  nonadministrative 
D)  private

Question 14

Price fixing, group boycotts, and horizontal territorial restraints are known as anti-trust violations.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is true of government regulation of business?

Accepted Answer

A)  Government regulations only affect the operation of certain businesses. 
B)  Government regulations do not affect product prices. 
C)  Government regulations are used to eliminate abuse in business. 
D)  Government regulations are used to improve quality of life for only certain sections of society. 
A)  Government regulations only affect the operation of certain businesses. 
B)  Government regulations do not affect product prices. 
C)  Government regulations are used to eliminate abuse in business. 
D)  Government regulations are used to improve quality of life for only certain sections of society.

Question 16

Regulatory agencies are also called social regulatory agencies.

Accepted Answer

A) True 
 B)False

Question 17

The Robinson-Patman Act prohibits sales at unreasonably low prices.

Accepted Answer

A) True 
 B)False

Question 18

The Resource Conservation and Recovery Act was enacted for:

Accepted Answer

A)  restoring and maintaining the proper chemistry of U.S. waters, including adjacent wetlands. 
B)  setting minimum national standards for air quality and regulates hazardous air pollutants. 
C)  setting limits on discharges, including pollutants into sewer systems. 
D)  regulating the generation, storage, transportation, treatment, and disposal of hazardous waste. 
A)  restoring and maintaining the proper chemistry of U.S. waters, including adjacent wetlands. 
B)  setting minimum national standards for air quality and regulates hazardous air pollutants. 
C)  setting limits on discharges, including pollutants into sewer systems. 
D)  regulating the generation, storage, transportation, treatment, and disposal of hazardous waste.

Question 19

The Resource Conservation and Recovery Act is responsible for preventing the illegal discharge of pollutants into interstate and navigable waters.

Accepted Answer

A) True 
 B)False

Question 20

Administrative agencies cannot hire scientists and researchers to study industries on their own accord.

Accepted Answer

A) True 
 B)False

Exam 4: Government Regulation of Business

Administrative agencies primarily set policy through the issuance of rules and regulations.

The purpose of antitrust laws is to:

Private citizens are entitled to sue on the basis of the Water Pollution and Control Act.

Define regulatory and nonregulatory administrative agencies.

Generally, it is the activity itself, not its effect, which is the most important element in deciding whether the Sherman Act has been violated.

Which of the following is true of administrative agencies?

Activities that are illegal regardless of their effect are known as _____.

Regulatory agencies can use the licensing power to:

Government regulates business by means of antitrust laws that seek to promote competition among businesses.

The power of a regulatory agency to fix the prices that a business may charge is known as _____.

Which of the following is true of The Water Pollution and Control Act?

The Federal Trade Commission and the Environmental Protection Agency are examples of _____ agencies.

Price fixing, group boycotts, and horizontal territorial restraints are known as anti-trust violations.

Which of the following is true of government regulation of business?

Regulatory agencies are also called social regulatory agencies.

The Robinson-Patman Act prohibits sales at unreasonably low prices.

The Resource Conservation and Recovery Act was enacted for:

The Resource Conservation and Recovery Act is responsible for preventing the illegal discharge of pollutants into interstate and navigable waters.

Administrative agencies cannot hire scientists and researchers to study industries on their own accord.

Introduction to Law

Courts and Court Procedure

Business Torts and Crimes

Nature and Classes of Contracts

Offer and Acceptance

Capacity to Contract

Consideration

Defective Agreements

Illegal Agreements

Written Contracts

Third Parties and Contracts

Termination of Contracts

Nature of Personal Property

Special Bailments

Sales of Personal Property

Formalities of a Sale

Transfer of Title and Risk in Sales Con

Warranties, Product Liability, and Cons

Nature of Negotiable Instruments

Essentials of Negotiability

Promissory Notes and Drafts

Negotiation and Discharge

Liabilities of Parties and Holders in Due Course

Defenses

Nature and Creation of an Agency

Operation and Termination of an Agency

Employer and Employee Relations

Employees Rights

Labor Legislation

Introduction to Business Organization

Creation and Operation of a Partnership

Dissolution of a Partnership

Nature of a Corporation

Ownership of a Corporation

Management and Dissolution of a Corpora

Principles of Insurance

Types of Insurance

Security Devices

Bankruptcy

Nature of Real Property

Transfer of Real Property

Real Estate Mortgages

Landlord and Tenant

Wills, Inheritances, and Trusts

Filters