Exam 16: The Legal and Regulatory Environment of Business

In less than a year, McGovern's small business ownership had come to an end.

A contract to commit an unlawful act or to violate public policy is void.

If someone's carelessness provides cause for legal action it is called "cause in fact."

Let's say that you asked the manager at Ladders "N" Things whether the ladder you had in mind was fit for holding a scaffolding platform for painting a house and he said "yes". He would have made a(n) _____.

In law, a product is defective if, despite any warnings, the risk of harm outweighs its usefulness in doing what it's designed to do. This is called negligence per se.

The primary goal of tort law is to compensate victims so that they will be in a better position financially than they would have been in had their injuries never taken place.

Jonathan Swift likened _____ to "cobwebs" because they seem to stretch in every direction to catch innocent flies while failing utterly to stop wasps and other creatures responsible for much greater crimes against human comfort.

Assault and battery violates statutes established by two different types of law-criminal and civil.

Complaints of assault and battery fall under a specific type of civil law called _____.

Constitutional law prohibits and punishes wrongful conduct.

Implied warranties arise automatically when there is a transaction.

Law governing disputes between private parties is called _____.

Intentional torts against property include _____.

In order to be valid, express warranties must be made or expressed in writing.

Externalities are costs that don't show up as part of the market price for a product.

Defamation delivered orally is called libel.

Punitive damages are monetary awards intended to meet the primary goal of legal action in tort cases.

Laws and regulations influence almost all areas of business.

Courts typically award punitive damages for breach of contract.

In the United States, the legal system _____ to respond to changes in social norms and commercial activities.