Question 1

One purpose of the Robinson-Patman Act is to outlaw price differences that substantially weaken competition.

Accepted Answer

A) True 
 B)False

Question 2

Submarine patents are primarily designed to generate large patent royalties for their owners.

Accepted Answer

A) True 
 B)False

Question 3

The use of tying contracts was prohibited by the Clayton Act of 1914 because these contracts

Accepted Answer

A)  required retailers to use false and misleading advertising. 
B)  required retailers to purchase unwanted items in order to purchase desired items. 
C)  forced households to buy wanted products in order to buy a desired product. 
D)  forced competitors into price discrimination agreements. 
A)  required retailers to use false and misleading advertising. 
B)  required retailers to purchase unwanted items in order to purchase desired items. 
C)  forced households to buy wanted products in order to buy a desired product. 
D)  forced competitors into price discrimination agreements.

Question 4

Administrative agencies actually have a greater impact on businesses than courts do.

Accepted Answer

A) True 
 B)False

Question 5

What is the Uniform Commercial Code and why is it important?

Accepted Answer

The Uniform Commercial Code (UCC) is a c

Question 6

Paul and Chris own Lucky's Liquor Store. They are careful to pay all of their taxes in full and on time. Recently, the local government has decided to raise the taxes imposed on the sale of cigarettes and liquor. Paul and Chris are upset about this because

Accepted Answer

A)  they will certainly have to pay more taxes. 
B)  people will likely buy less cigarettes and liquor from them. 
C)  the government has increased the sales tax. 
D)  their personal property tax will now increase. 
A)  they will certainly have to pay more taxes. 
B)  people will likely buy less cigarettes and liquor from them. 
C)  the government has increased the sales tax. 
D)  their personal property tax will now increase.

Question 7

The federal government can levy a sin tax in an effort to encourage businesses to hire new employees.

Accepted Answer

A) True 
 B)False

Question 8

The government's involvement in governing the behavior of business people seems to be increasing.

Accepted Answer

A) True 
 B)False

Question 9

It appears that some regulation of business is necessary to ensure fair and honest dealings with the public.

Accepted Answer

A) True 
 B)False

Question 10

A patent gives inventors exclusive rights to their inventions for 20 years.

Accepted Answer

A) True 
 B)False

Question 11

Companies that produced asbestos decades ago are still subject to the strict product liability provisions of federal tort law.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following would cause a contract to be void?

Accepted Answer

A)  consideration 
B)  mutual acceptance 
C)  competent parties 
D)  duress 
A)  consideration 
B)  mutual acceptance 
C)  competent parties 
D)  duress

Question 13

When Fitness Fanatics, Inc. agrees to replace or repair your defective stationary bike at no charge to you, Fitness Fanatics is fulfilling a full warranty on your bike.

Accepted Answer

A) True 
 B)False

Question 14

Identify the six conditions that must be met for a contract to be legally binding.

Accepted Answer

1. An offer is made to do something or s

Question 15

The Robinson-Patman Act applies only to business-to-business transactions.

Accepted Answer

A) True 
 B)False

Question 16

Trial courts hear cases involving criminal and civil law.

Accepted Answer

A) True 
 B)False

Question 17

Both the airline and telecommunications industries have been deregulated.

Accepted Answer

A) True 
 B)False

Question 18

A patent gives inventors exclusive rights to their inventions for

Accepted Answer

A)  20 months. 
B)  17 years. 
C)  20 years. 
D)  the lifetime of the inventor plus 50 years. 
A)  20 months. 
B)  17 years. 
C)  20 years. 
D)  the lifetime of the inventor plus 50 years.

Question 19

The intent of the Sherman Antitrust Act of 1890 was to encourage the growth of large business organizations in the U.S. in order to compete with more established firms in Europe.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is a condition required for a legally binding contract?

Accepted Answer

A)  discharge of obligation 
B)  warranty 
C)  mutual acceptance 
D)  duress 
A)  discharge of obligation 
B)  warranty 
C)  mutual acceptance 
D)  duress

Exam 21: Appendix: Working Within the Legal Environment

One purpose of the Robinson-Patman Act is to outlaw price differences that substantially weaken competition.

Submarine patents are primarily designed to generate large patent royalties for their owners.

The use of tying contracts was prohibited by the Clayton Act of 1914 because these contracts

Administrative agencies actually have a greater impact on businesses than courts do.

What is the Uniform Commercial Code and why is it important?

Paul and Chris own Lucky's Liquor Store. They are careful to pay all of their taxes in full and on time. Recently, the local government has decided to raise the taxes imposed on the sale of cigarettes and liquor. Paul and Chris are upset about this because

The federal government can levy a sin tax in an effort to encourage businesses to hire new employees.

The government's involvement in governing the behavior of business people seems to be increasing.

It appears that some regulation of business is necessary to ensure fair and honest dealings with the public.

A patent gives inventors exclusive rights to their inventions for 20 years.

Companies that produced asbestos decades ago are still subject to the strict product liability provisions of federal tort law.

Which of the following would cause a contract to be void?

When Fitness Fanatics, Inc. agrees to replace or repair your defective stationary bike at no charge to you, Fitness Fanatics is fulfilling a full warranty on your bike.

Identify the six conditions that must be met for a contract to be legally binding.

The Robinson-Patman Act applies only to business-to-business transactions.

Trial courts hear cases involving criminal and civil law.

Both the airline and telecommunications industries have been deregulated.

A patent gives inventors exclusive rights to their inventions for

The intent of the Sherman Antitrust Act of 1890 was to encourage the growth of large business organizations in the U.S. in order to compete with more established firms in Europe.

Which of the following is a condition required for a legally binding contract?

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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