Exam 21: Appendix: Working Within the Legal Environment

Though high-profile business bankruptcies such as Sports Authority and Radio Shack dominate the news, over 90 percent of bankruptcy filings each year are by individuals.

Your 15-year-old brother comes home with the great news that he has decided to buy his first car and has just agreed to give $10,000 to someone on Craig's List. He signed the contract and just needs to pay the seller and pick up the car. Your dad is upset and calls the seller to tell him your brother will not be buying the car. What can the seller do?

A breach of contract occurs when one party fails to follow the terms of the contract.

The intent of a patent is to

The warranty you receive in the box with a toaster is an express warranty.

The Justice Department's lawsuit against Microsoft is an example of an antitrust case.

Under contract law, a 15-year-old may be a party to a contract.

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

The body of law created by court decisions rendered by judges is called ________ law.

The Sherman Antitrust Act was designed to prevent large businesses from stifling the competition of smaller or newer firms.

Most bankruptcies today are involuntary because creditors want to retrieve as much of their money as possible.

Taxes have been used as a method of encouraging or discouraging taxpayers from doing something.

When one party fails to follow the terms of a contract, the party has committed a(n)

Money collected from excise taxes goes toward a specific purpose.

While the government regulates business activities, businesses would prefer to set their own standards of behavior. Which of the following is the most likely reason the government has intervened?

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

Deregulation has always benefited consumers.

Explain the difference between statutory law, common law, and business law.

One result of deregulation in the airline industry has been

Big Johnson Products charges Moe's Meats a lower price for goods because Moe and Johnson play golf together regularly. Big Johnson charges other firms similar to Moe's Meats more for the same products and this is beginning to hurt the business of the other firms. In fact, Moe's Meats is taking so much business away from the others due to its lower prices that the other firms are in danger of going out of business. This is an example of