Question 1

Another name for sin tax is excise tax.

Accepted Answer

A) True 
 B)False

Question 2

Business law creates the legal framework for the enforcement of criminal statutes.

Accepted Answer

A) True 
 B)False

Question 3

Under the doctrine of strict product liability, a manufacturer can be held liable

Accepted Answer

A)  even if when the product was introduced everyone agreed it was safe. 
B)  only if the firm knowingly sold a hazardous product. 
C)  only if the firm purposefully was negligent in the design or production of the product. 
D)  only if the firm intentionally introduced a defective product. 
A)  even if when the product was introduced everyone agreed it was safe. 
B)  only if the firm knowingly sold a hazardous product. 
C)  only if the firm purposefully was negligent in the design or production of the product. 
D)  only if the firm intentionally introduced a defective product.

Question 4

Congratulations! You've just finished composing a song that will be the next big hit. Your next step is to apply for a patent through the U.S. Patent & Trademark Office.

Accepted Answer

A) True 
 B)False

Question 5

The Federal Trade Commission acts to stop false and deceptive advertising and labeling.

Accepted Answer

A) True 
 B)False

Question 6

Lawtown's mayor has just signed legislation requiring fire sprinklers in every public school. This is an example of

Accepted Answer

A)  common law. 
B)  statutory law. 
C)  administrative law. 
D)  unwritten law. 
A)  common law. 
B)  statutory law. 
C)  administrative law. 
D)  unwritten law.

Question 7

A public utility commission sets rates that can be charged by various public utilities to prevent unfair pricing by regulated monopolies. These public utility commissions are examples of state administrative agencies.

Accepted Answer

A) True 
 B)False

Question 8

A(n) ________ tort is a willful act that results in injury.

Accepted Answer

A)  negligent 
B)  intentional 
C)  common 
D)  statutory 
A)  negligent 
B)  intentional 
C)  common 
D)  statutory

Question 9

________ often help to pay for highway construction or improvements.

Accepted Answer

A)  Sin taxes 
B)  Property taxes 
C)  Income taxes 
D)  Facility taxes 
A)  Sin taxes 
B)  Property taxes 
C)  Income taxes 
D)  Facility taxes

Question 10

When a payee signs the back of a check the payee's signature is referred to as an endorsement.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following refers to a tax designed to reduce the consumption of a specific good?

Accepted Answer

A)  control tax 
B)  sin tax 
C)  flat tax 
D)  tax credit 
A)  control tax 
B)  sin tax 
C)  flat tax 
D)  tax credit

Question 12

Because it is no longer used in construction today, National Asbestos Manufacturing cannot be sued for damages today that are caused by asbestos that may still remain in some buildings.

Accepted Answer

A) True 
 B)False

Question 13

An interlocking directorate occurs when a board of directors includes members of the board of competing corporations.

Accepted Answer

A) True 
 B)False

Question 14

Batteries and tires sold with an express warranty provide the buyer with a guarantee regarding the life of the product.

Accepted Answer

A) True 
 B)False

Question 15

When Bryan and Lizzie got married they wanted to travel, buy nice houses and cars, and enjoy the good life. They used credit cards to finance their lifestyle, believing they would be fine as long as they could make the minimum payments. One day they discovered that because of rising interest rates, even the minimum payments were out of reach. They decided to declare Chapter 13 bankruptcy. Under this plan, they will have to pay their creditors back over 3 to 5 years.

Accepted Answer

A) True 
 B)False

Question 16

Copyrights are filed with the Library of Congress and involve large amounts of paperwork.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following prohibits monopolies, attempts to monopolize, and any restraint of trade?

Accepted Answer

A)  Clayton Act 
B)  Sherman Act 
C)  Robinson-Patman Act 
D)  Wheeler-Lea Amendment 
A)  Clayton Act 
B)  Sherman Act 
C)  Robinson-Patman Act 
D)  Wheeler-Lea Amendment

Question 18

The Federal Trade Commission Act of 1914 prohibits minors from entering into contracts.

Accepted Answer

A) True 
 B)False

Question 19

Under contract law, an agreement for the sale of goods worth $50 or more must be in writing.

Accepted Answer

A) True 
 B)False

Question 20

The Robinson-Patman Act applies only to sellers who knowingly induce an unlawful discrimination in price.

Accepted Answer

A) True 
 B)False

Exam 21: Appendix: Working Within the Legal Environment

Another name for sin tax is excise tax.

Business law creates the legal framework for the enforcement of criminal statutes.

Under the doctrine of strict product liability, a manufacturer can be held liable

Congratulations! You've just finished composing a song that will be the next big hit. Your next step is to apply for a patent through the U.S. Patent & Trademark Office.

The Federal Trade Commission acts to stop false and deceptive advertising and labeling.

Lawtown's mayor has just signed legislation requiring fire sprinklers in every public school. This is an example of

A public utility commission sets rates that can be charged by various public utilities to prevent unfair pricing by regulated monopolies. These public utility commissions are examples of state administrative agencies.

A(n) ________ tort is a willful act that results in injury.

________ often help to pay for highway construction or improvements.

When a payee signs the back of a check the payee's signature is referred to as an endorsement.

Which of the following refers to a tax designed to reduce the consumption of a specific good?

Because it is no longer used in construction today, National Asbestos Manufacturing cannot be sued for damages today that are caused by asbestos that may still remain in some buildings.

An interlocking directorate occurs when a board of directors includes members of the board of competing corporations.

Batteries and tires sold with an express warranty provide the buyer with a guarantee regarding the life of the product.

Copyrights are filed with the Library of Congress and involve large amounts of paperwork.

Which of the following prohibits monopolies, attempts to monopolize, and any restraint of trade?

The Federal Trade Commission Act of 1914 prohibits minors from entering into contracts.

Under contract law, an agreement for the sale of goods worth $50 or more must be in writing.

The Robinson-Patman Act applies only to sellers who knowingly induce an unlawful discrimination in price.

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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