Question 1

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 2

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

Accepted Answer

A) True 
 B)False

Question 3

Mini-Case
Brian and Sondra have just opened a new Cajun restaurant on the edge of town,Cajun Cookin' Inc.They own the land and building and have a brand-new kitchen as well as a lovely seating area,filled with mementos from the South.They have a liquor license and make wonderful Southern drinks.They are quite pleased that members of the community are helping their business grow by coming in for a meal or a drink after work.They are good businesspeople who pay their bills on time and as a result have great relationships with the vendors that supply them food.
-Sondra was expecting a shipment of food from one of her suppliers and it didn't come.When she called the supplier the phone was disconnected.Later Sondra read that the supplier had gone out of business because it couldn't pay its debts.The supplier likely declared Chapter __________ bankruptcy.

Accepted Answer

A) 7 
B) 11 
C) 13 
D) 17 
A) 7 
B) 11 
C) 13 
D) 17

Question 4

Under contract law,"consideration" means something of value.

Accepted Answer

A) True 
 B)False

Question 5

James advertises in the newspaper to sell his used car for $6,000.Eric test drove the car and then offered James $5,400 for the car.In this case:

Accepted Answer

A) the two parties have created a legally enforceable contract. 
B) Eric's offer represents an acceptance of the original terms. 
C) there is no agreement and no contract. 
D) there is no agreement,but there is a valid contract. 
A) the two parties have created a legally enforceable contract. 
B) Eric's offer represents an acceptance of the original terms. 
C) there is no agreement and no contract. 
D) there is no agreement,but there is a valid contract.

Question 6

Which of the following is an example of statutory law?

Accepted Answer

A) strict product liability 
B) Robinson-Patman Act 
C) consumerism 
D) negligence 
A) strict product liability 
B) Robinson-Patman Act 
C) consumerism 
D) negligence

Question 7

McDonald's was the subject of a product liability suit charging that its food caused obesity,diabetes,and other health problems in children.

Accepted Answer

A) True 
 B)False

Question 8

The primary objective of a sin tax is to generate additional revenue for the government.

Accepted Answer

A) True 
 B)False

Question 9

A(n)__________ patent refers to the situation when some inventors intentionally delay a patent application because they expect others to develop similar products or technology.

Accepted Answer

A) underground 
B) substandard 
C) submarine 
D) under-the-table 
A) underground 
B) substandard 
C) submarine 
D) under-the-table

Question 10

The intent of a patent is to:

Accepted Answer

A) increase competition in the marketplace. 
B) reward innovation and hard work of inventors. 
C) slow the growth of monopolies. 
D) encourage copycat inventions. 
A) increase competition in the marketplace. 
B) reward innovation and hard work of inventors. 
C) slow the growth of monopolies. 
D) encourage copycat inventions.

Question 11

If a contract is to be legally binding,both parties must give consideration.

Accepted Answer

A) True 
 B)False

Question 12

When Sam and Marie 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 13

Your 15-year-old brother comes home with the great news that he has decided to buy his first car and has just agreed to give $10,000 to a complete stranger.He signed the contract and just needs to pay the stranger and pick up the car.Your dad is upset and calls the stranger to tell him your brother will not be buying the car.The stranger can:

Accepted Answer

A) sue your brother for breach of contract. 
B) sue your dad for breach of contract. 
C) sue your brother for specific performance. 
D) do nothing. 
A) sue your brother for breach of contract. 
B) sue your dad for breach of contract. 
C) sue your brother for specific performance. 
D) do nothing.

Question 14

The U.S.court system is organized solely at the federal and state levels.

Accepted Answer

A) True 
 B)False

Question 15

Filing for bankruptcy under the Chapter 11 provisions allows a company to reorganize and continue operations while paying only a proportion of its debts.

Accepted Answer

A) True 
 B)False

Question 16

The branch of the government responsible for overseeing the legal system is the:

Accepted Answer

A) judiciary. 
B) executive. 
C) legislative. 
D) administrative. 
A) judiciary. 
B) executive. 
C) legislative. 
D) administrative.

Question 17

Once companies declare bankruptcy,they always go out of business.

Accepted Answer

A) True 
 B)False

Question 18

The Sarbanes-Oxley Act requires CEOs to verify the accuracy of their firms' financial statements to the SEC.

Accepted Answer

A) True 
 B)False

Question 19

Compare and contrast the protection offered by patents,copyrights,and trademarks.

Accepted Answer

Patents provide inventors exclusive righ

Question 20

Explain two of the major U.S.antitrust laws.

Accepted Answer

Students should choose two from among th

Exam 24: Appendix: Working Within the Legal Environment

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

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

Under contract law,"consideration" means something of value.

James advertises in the newspaper to sell his used car for $6,000.Eric test drove the car and then offered James $5,400 for the car.In this case:

Which of the following is an example of statutory law?

McDonald's was the subject of a product liability suit charging that its food caused obesity,diabetes,and other health problems in children.

The primary objective of a sin tax is to generate additional revenue for the government.

A(n)__________ patent refers to the situation when some inventors intentionally delay a patent application because they expect others to develop similar products or technology.

The intent of a patent is to:

If a contract is to be legally binding,both parties must give consideration.

The U.S.court system is organized solely at the federal and state levels.

Filing for bankruptcy under the Chapter 11 provisions allows a company to reorganize and continue operations while paying only a proportion of its debts.

The branch of the government responsible for overseeing the legal system is the:

Once companies declare bankruptcy,they always go out of business.

The Sarbanes-Oxley Act requires CEOs to verify the accuracy of their firms' financial statements to the SEC.

Compare and contrast the protection offered by patents,copyrights,and trademarks.

Explain two of the major U.S.antitrust laws.

Taking Risks and Making Profits Within the Dynamic Business Environment

Understanding How Economics 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

Adapting Organizations to Todays Markets

Production and Operations Management

Motivating Employees

Human Resource Management: Finding and Keeping the Best Employees

Dealing With Employee-Management Issues and Relationships

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

Bonus A: Using Technology to Manage Information

Bonus B: Managing Risk

Bonus C: Managing Your Personal Finances

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