Question 1

Describe bankruptcy and three sections of the Bankruptcy Code.

Accepted Answer

Bankruptcy refers to the legal process b

Question 2

Negotiable instruments are forms of commercial paper.

Accepted Answer

A) True 
 B)False

Question 3

Business law is enforceable by the courts.

Accepted Answer

A) True 
 B)False

Question 4

A warranty guarantees that

Accepted Answer

A)  the seller will replace or repair the product at no charge if the customer finds a cheaper substitute. 
B)  the buyer has read and understood the information provided in the owner's manual. 
C)  consumers will have access to a customer complaint resolution hot line. 
D)  the product sold will be acceptable for the purpose for which the buyer intends to use it. 
A)  the seller will replace or repair the product at no charge if the customer finds a cheaper substitute. 
B)  the buyer has read and understood the information provided in the owner's manual. 
C)  consumers will have access to a customer complaint resolution hot line. 
D)  the product sold will be acceptable for the purpose for which the buyer intends to use it.

Question 5

The Environmental Protection Agency is an example of a(n)

Accepted Answer

A)  common law agency. 
B)  statutory judicial agency. 
C)  private placement agency. 
D)  administrative agency. 
A)  common law agency. 
B)  statutory judicial agency. 
C)  private placement agency. 
D)  administrative agency.

Question 6

The Uniform Commercial Code establishes a standardized set of regulations for business transactions in all 50 states.

Accepted Answer

A) True 
 B)False

Question 7

When your younger brother signs the back of his paycheck and gives it to you in payment for money he owes you, he has endorsed the check, and you may deposit it in your checking account.

Accepted Answer

A) True 
 B)False

Question 8

Intentional and unintentional behavior that causes harm or injury is an example of a tort.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is considered as a cause for the significant increase in bankruptcies?

Accepted Answer

A)  a decrease in the understanding of bankruptcy law 
B)  a decrease in the price to complete the process by bankruptcy lawyers 
C)  an increase in the number of involuntary bankruptcy cases initiated by creditors 
D)  an increase in the ease with which some consumers can get credit 
A)  a decrease in the understanding of bankruptcy law 
B)  a decrease in the price to complete the process by bankruptcy lawyers 
C)  an increase in the number of involuntary bankruptcy cases initiated by creditors 
D)  an increase in the ease with which some consumers can get credit

Question 10

The rule of strict product liability holds a firm liable for a defective product only if the firm knowingly placed a hazardous product on the market.

Accepted Answer

A) True 
 B)False

Question 11

Public utility commissions are federal agencies.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following can review and, when necessary, overturn decisions made at the trial court level?

Accepted Answer

A)  administrative agencies 
B)  appellate courts 
C)  arbitration judges 
D)  statutory agencies 
A)  administrative agencies 
B)  appellate courts 
C)  arbitration judges 
D)  statutory agencies

Question 13

Willow is concerned that she is not getting full disclosure of information from a mortgage broker who is hoping to refinance the mortgage on her house. Having recently studied business law, you suggest to Willow that she contact the ________ that was formed after the Dodd-Frank Wall Street Reform and Consumer Protection Act became law.

Accepted Answer

A)  Federal Trade Commission (FT
C)  
B)  Consumer Financial Protection Bureau (CFP
B)  
C)  Due Diligence Agency (DD
A)  
D)  Financial Fairness Consortium (FF
C)  
A)  Federal Trade Commission (FT
C)  
B)  Consumer Financial Protection Bureau (CFP
B)  
C)  Due Diligence Agency (DD
A)  
D)  Financial Fairness Consortium (FF
C)

Question 14

The warranty you receive in the box with your new iPad is a(n)

Accepted Answer

A)  implied warranty. 
B)  express warranty. 
C)  uniform warranty. 
D)  commercial warranty. 
A)  implied warranty. 
B)  express warranty. 
C)  uniform warranty. 
D)  commercial warranty.

Question 15

Sales taxes are the largest source of tax income received by the federal government.

Accepted Answer

A) True 
 B)False

Question 16

A ________ is a legally enforceable agreement between two or more parties.

Accepted Answer

A)  warranty 
B)  negotiable instrument 
C)  contract 
D)  combination 
A)  warranty 
B)  negotiable instrument 
C)  contract 
D)  combination

Question 17

The purpose of governmental deregulation is to eliminate laws that seem to hinder competition.

Accepted Answer

A) True 
 B)False

Question 18

In 1978, a 13-year-old boy was severely burned in a rear-end collision involving a Ford Pinto. The case went to court and Ford was ordered to pay $125 million in punitive damages based on the legal principle of

Accepted Answer

A)  product discrimination. 
B)  product liability. 
C)  breach of contract. 
D)  exclusive dealing. 
A)  product discrimination. 
B)  product liability. 
C)  breach of contract. 
D)  exclusive dealing.

Question 19

Regulations covering sales, checks, bank deposits, and bills of lading are contained in the Uniform Commercial Code.

Accepted Answer

A) True 
 B)False

Question 20

The Federal Trade Commission (FTC) deals with issues such as preventing companies from making misleading "Made in the USA" claims.

Accepted Answer

A) True 
 B)False

Exam 21: Appendix: Working Within the Legal Environment

Describe bankruptcy and three sections of the Bankruptcy Code.

Negotiable instruments are forms of commercial paper.

Business law is enforceable by the courts.

A warranty guarantees that

The Environmental Protection Agency is an example of a(n)

The Uniform Commercial Code establishes a standardized set of regulations for business transactions in all 50 states.

When your younger brother signs the back of his paycheck and gives it to you in payment for money he owes you, he has endorsed the check, and you may deposit it in your checking account.

Intentional and unintentional behavior that causes harm or injury is an example of a tort.

Which of the following is considered as a cause for the significant increase in bankruptcies?

The rule of strict product liability holds a firm liable for a defective product only if the firm knowingly placed a hazardous product on the market.

Public utility commissions are federal agencies.

Which of the following can review and, when necessary, overturn decisions made at the trial court level?

The warranty you receive in the box with your new iPad is a(n)

Sales taxes are the largest source of tax income received by the federal government.

A ________ is a legally enforceable agreement between two or more parties.

The purpose of governmental deregulation is to eliminate laws that seem to hinder competition.

In 1978, a 13-year-old boy was severely burned in a rear-end collision involving a Ford Pinto. The case went to court and Ford was ordered to pay $125 million in punitive damages based on the legal principle of

Regulations covering sales, checks, bank deposits, and bills of lading are contained in the Uniform Commercial Code.

The Federal Trade Commission (FTC) deals with issues such as preventing companies from making misleading "Made in the USA" claims.

Taking Risks and Making Profits Within the Dynamic Business Environment

Understanding Economics and How It Affects Business

Doing Business in Global Markets

Demanding Ethical and Socially Responsible Behavior

How to Form a Business

Entrepreneurship and Starting a Small Business

Management and Leadership

Structuring Organizations for Todays Challenges

Production and Operations Management

Motivating Employees

Human Resource Management: Finding and Keeping the Best Employees

Dealing With Employeemanagement Issues

Marketing: Helping Buyers Buy

Developing and Pricing Goods and Services

Distributing Products

Using Effective Promotions

Understanding Accounting and Financial Information

Financial Management

Using Securities Markets for Financing and Investing Opportunities

Money, Financial Institutions, and the Federal Reserve

Appendix: Using Technology to Manage Information

Appendix: Managing Risk

Appendix: Managing Personal Finances

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