Question 1

The Office of Foreign Assets Control (OFAC)is responsible for:

Accepted Answer

A) enforcing economic sanctions against individuals and entities deemed a threat to national security. 
B) regulating public utility companies. 
C) setting licensing requirements for professionals in the financial sector. 
D) dispensing benefits for social and economic welfare. 
A) enforcing economic sanctions against individuals and entities deemed a threat to national security. 
B) regulating public utility companies. 
C) setting licensing requirements for professionals in the financial sector. 
D) dispensing benefits for social and economic welfare. A

Question 2

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 D

Question 3

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. B

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

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 6

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 7

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

Accepted Answer

A) Government regulations only affect the operation of a small number of 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 a small number of 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 8

Describe the rule making process followed by federal administrative agencies. ​

Accepted Answer

After investigating a problem, an agency

Question 9

Regulatory agencies are also called social regulatory agencies.

Accepted Answer

A) True 
 B)False

Question 10

An antitrust violation occurs when a business firm seeks to have cooperation within its firm to diminish competition.

Accepted Answer

A) True 
 B)False

Question 11

An agency's power to determine whether the activity of a regulated entity is acceptable or not is an example of:

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

Regulatory agencies can use their 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 13

The Water Pollution and Control Act is responsible for preventing the illegal discharge of pollutants into interstate and navigable waters.

Accepted Answer

A) True 
 B)False

Question 14

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.

Question 15

A state administrative agency affects businesses throughout the country. ​

Accepted Answer

A) True 
 B)False

Question 16

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 17

The Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA)seeks to:

Accepted Answer

A) ensure the cleanup of waste from previous business activities. 
B) set minimum standards for air quality. 
C) limit discharges, including pollutants, into sewer systems. 
D) regulate the generation, storage, transportation, treatment, and disposal of hazardous waste. 
A) ensure the cleanup of waste from previous business activities. 
B) set minimum standards for air quality. 
C) limit discharges, including pollutants, into sewer systems. 
D) regulate the generation, storage, transportation, treatment, and disposal of hazardous waste.

Question 18

The Robinson-Patman Act prohibits sales at unreasonably low prices in order to eliminate competition.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 4: Government Regulation of Business

The Office of Foreign Assets Control (OFAC)is responsible for:

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

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

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

Describe the rule making process followed by federal administrative agencies. ​

Regulatory agencies are also called social regulatory agencies.

An antitrust violation occurs when a business firm seeks to have cooperation within its firm to diminish competition.

An agency's power to determine whether the activity of a regulated entity is acceptable or not is an example of:

Regulatory agencies can use their licensing power to:

The Water Pollution and Control Act is responsible for preventing the illegal discharge of pollutants into interstate and navigable waters.

The purpose of antitrust laws is to:

A state administrative agency affects businesses throughout the country. ​

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

The Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA)seeks to:

The Robinson-Patman Act prohibits sales at unreasonably low prices in order to eliminate competition.

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

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

Introduction to Law

Courts and Court Procedures

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 Contracts

Warranties Product Liability and Consumer Protection

Nature of Negotiable Instruments

Essentials of Negotiability

Promissory Notes and Drafts

Negotiation and Discharge

Liabilities of Parties, Holders in Due Course and Defenses

Nature and Creation of an Agency

Operation and Termination of an Agency

Employer and Employee Relations

Employees Rights

Introduction to Business Organizations

Creation and Operation of a Partnership

Dissolution of a Partnership

Nature of a Corporation

Ownership of a Corporation

Management and Dissolution of a Corporation

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 Trust

Filters

Describe the rule making process followed by federal administrative agencies.

A state administrative agency affects businesses throughout the country.