Question 1

Who owns the copyright of a cartoon character created by an employee of a firm as part of their normal job responsibilities?

Accepted Answer

A) The employee who created the cartoon character. 
B) The employer of the cartoon character's creator. 
C) Cartoon characters are not covered by copyright protection. 
D) The union that represents the employee. 
A) The employee who created the cartoon character. 
B) The employer of the cartoon character's creator. 
C) Cartoon characters are not covered by copyright protection. 
D) The union that represents the employee.

Question 2

Concerns over the increase in the number of business laws and regulations that were costing the public money led to:

Accepted Answer

A) downsizing. 
B) restructuring. 
C) deregulation. 
D) reregulation. 
A) downsizing. 
B) restructuring. 
C) deregulation. 
D) reregulation.

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) Income taxes 
B) Property taxes 
C) Sales taxes 
D) Excise taxes 
A) Income taxes 
B) Property taxes 
C) Sales taxes 
D) Excise taxes

Question 5

The financial claims of ________ are given priority when assets are distributed among creditors in a bankruptcy case.

Accepted Answer

A) employees 
B) customers 
C) bankruptcy lawyers 
D) stockholders 
A) employees 
B) customers 
C) bankruptcy lawyers 
D) stockholders

Question 6

Taxes have been used as a method of encouraging or discouraging taxpayers from doing something.

Accepted Answer

A) True 
 B)False

Question 7

The executive branch of the government is responsible for overseeing the legal system.

Accepted Answer

A) True 
 B)False

Question 8

Contract law is a set of laws that covers sales laws and other commercial laws.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

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 11

The FTC has jurisdiction over false or misleading advertising.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following was designed to simplify and standardize the laws affecting businesses involved in interstate trade?

Accepted Answer

A) common law 
B) statutory law 
C) the standardized commerce rules 
D) the Uniform Commercial Code 
A) common law 
B) statutory law 
C) the standardized commerce rules 
D) the Uniform Commercial Code

Question 13

While the government regulates business activities,businesses would prefer to set their own standards of behavior.Which of the following is the most likely reason the government has intervened?

Accepted Answer

A) The relationships between businesses and other parties are more complex than ever. 
B) The public perceives U.S.businesses as moving too slowly in implementing acceptable standards of behavior. 
C) The judiciary branch of the government is more aware of the needs and desires of society. 
D) There has been an increase in the number of lawyers. 
A) The relationships between businesses and other parties are more complex than ever. 
B) The public perceives U.S.businesses as moving too slowly in implementing acceptable standards of behavior. 
C) The judiciary branch of the government is more aware of the needs and desires of society. 
D) There has been an increase in the number of lawyers.

Question 14

A trademark gives exclusive legal protection to a name,symbol,or design that distinguishes the goods or services of one seller from those of competitors.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

The Federal Trade Commission Act prohibits unfair methods of competition.

Accepted Answer

A) True 
 B)False

Question 17

A company has to be insolvent before it can file for Chapter 11 bankruptcy.

Accepted Answer

A) True 
 B)False

Question 18

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.
-One day as Brian was speaking with one of his customers a shriek went up from the other side of the restaurant.When he rushed over,he found that one of his customers had spilled hot tea on her arm.If this customer was so inclined,she could __________ and the court would likely find in her favor.

Accepted Answer

A) sue Brian for breach of contract 
B) sue the restaurant for negligence 
C) sue the restaurant under statutory law 
D) She can do nothing about this except not go to the restaurant ever again. 
A) sue Brian for breach of contract 
B) sue the restaurant for negligence 
C) sue the restaurant under statutory law 
D) She can do nothing about this except not go to the restaurant ever again.

Question 19

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 20

When Sears agrees to replace or repair your defective treadmill at no charge to you,Sears is fulfilling a full warranty on your treadmill.

Accepted Answer

A) True 
 B)False

Exam 24: Appendix: Working Within the Legal Environment

Who owns the copyright of a cartoon character created by an employee of a firm as part of their normal job responsibilities?

Concerns over the increase in the number of business laws and regulations that were costing the public money led to:

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

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

The financial claims of ________ are given priority when assets are distributed among creditors in a bankruptcy case.

Taxes have been used as a method of encouraging or discouraging taxpayers from doing something.

The executive branch of the government is responsible for overseeing the legal system.

Contract law is a set of laws that covers sales laws and other commercial laws.

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

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 FTC has jurisdiction over false or misleading advertising.

Which of the following was designed to simplify and standardize the laws affecting businesses involved in interstate trade?

While the government regulates business activities,businesses would prefer to set their own standards of behavior.Which of the following is the most likely reason the government has intervened?

A trademark gives exclusive legal protection to a name,symbol,or design that distinguishes the goods or services of one seller from those of competitors.

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

The Federal Trade Commission Act prohibits unfair methods of competition.

A company has to be insolvent before it can file for Chapter 11 bankruptcy.

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:

When Sears agrees to replace or repair your defective treadmill at no charge to you,Sears is fulfilling a full warranty on your treadmill.

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

Filters