Exam 21: Appendix: Working Within the Legal Environment

Statutory law refers to written legislation.

Producers of government-approved drugs and chemicals cannot be sued by individuals who develop side effects years later.

Exclusive dealing means selling goods with the condition that the buyer will not buy goods from a competitor.

Without the permission of the inventor, Five Star Automobile Manufacturing copied the engine design of an innovative competitor. What is Five Star guilty of?

The Sherman Antitrust Act forbids actual monopolies or attempts to monopolize any part of commerce.

Which of the following protects the original work of authors and artists (i.e., their books, photos, or cartoons)?

________ is the process of eliminating laws and regulations that hinder competition.

The FTC has jurisdiction over false or misleading advertising.

Concerns over the increase in the number of business laws and regulations that were costing the public money led to

________ refers to rules, statutes, codes, and regulations established to provide a legal framework within which business may be conducted.

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

Tort law involves criminal acts where victims can be awarded compensation.

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

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

The Clayton Act prohibits interlocking directorates.

Requiring that both parties are competent for a contract to be legal protects those who might be unable to protect themselves.

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.

Which of the following is true of a copyright?

Negligence, in tort law, deals with behavior that causes intentional harm or injury.

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