Exam 21: Appendix: Working Within the Legal Environment

Which of the following holds a company liable for damages caused by a defective product even if the firm was unaware of the defect at the time of sale?

In voluntary bankruptcy cases the creditors voluntarily start legal action against the debtor.

Businesses today prefer to have the government set the standards for acceptable behavior.

Patent owners are prohibited from selling or licensing their patent rights to others.

The warranty you receive in the box with an iPad is an implied warranty.

You and your boss agree to terminate your employment contract because you want to devote more time to school. This breach of contract would likely be resolved by

The two main purposes of taxes are

One day as Nolan was speaking with one of his customers a shriek went up from the other side of the restaurant. When he rushed over, he found that one of his customers had spilled hot tea on her arm. If this customer was so inclined, she could ________ and the court would likely find in her favor.

Which of the following do school districts utilize to generate needed funding?

Tort law includes product liability cases.

Unlike a patent, trademarks are not protected from infringement.

The number of Americans filing for bankruptcy has increased tremendously since the late 1980s.

Cajun Kitchen sits on a large landscaped lot. Nolan and Sadie have a contract with Green Goddess Lawn Service to mow the lawn and take care of the landscape. They pay $200 per month for this service. After two weeks had gone by with no service, Nolan called the company only to find out that the owner and the crew had decided to take a vacation and would not be back to do the landscaping for another two weeks. Green Goddess

The Federal Trade Commission Act of 1914 prohibits unfair methods of competition.

Nolan and Sadie own a very successful Cajun restaurant. They recently built their own building and own all of the decorations in the restaurant, along with the equipment needed to run the business. They will pay real property taxes on the building and land and personal property taxes on the decorations and equipment.

An interlocking directorate occurs when a contract between a retailer and a wholesaler requires misleading advertising.

A check is an example of a negotiable instrument.

The executive branch of the government is responsible for overseeing the legal system.

Candace owns a rare painting and has agreed to a contract whereby she will sell it to the Washingtonian Museum for $7.8 million. At the last minute, she decides she cannot bear to part with her painting and will not sell it to the Washingtonian. The museum can sue Candace for specific performance.

Under contract law, duress means the presence of coercion through force or threat of force.