Question 1

Implied warranties are guarantees legally imposed on the seller.

Accepted Answer

A) True 
 B)False

Question 2

Mary Ann owns a rare Monet painting and she has agreed to a contract whereby she will sell it to the Museum of Art for $5.3 million.At the last minute she decides she cannot bear to part with her painting and will not sell it to the Museum.The Museum can sue Mary Ann for specific performance.

Accepted Answer

A) True 
 B)False

Question 3

Copyrights can be passed on to the creator's heirs.

Accepted Answer

A) True 
 B)False

Question 4

Warren Tee was injured using a hair dryer manufactured by the Whoopee Electrical Products Company.Warren has contacted a lawyer because he feels that Whoopee is responsible for his injury based on the legal principle of:

Accepted Answer

A) restricted endorsement. 
B) fault free obligations. 
C) patent infringement. 
D) strict product liability. 
A) restricted endorsement. 
B) fault free obligations. 
C) patent infringement. 
D) strict product liability.

Question 5

Administrative agencies are given the power by Congress to pass rules and regulations within a specific area of authority.

Accepted Answer

A) True 
 B)False

Question 6

The body of law created by court decisions rendered by judges is called __________ law.

Accepted Answer

A) precedent 
B) statutory 
C) common 
D) tort 
A) precedent 
B) statutory 
C) common 
D) tort

Question 7

________ is the process of eliminating laws and regulations that hinder competition.

Accepted Answer

A) Downsizing 
B) Restructuring 
C) Deregulation 
D) Reregulation 
A) Downsizing 
B) Restructuring 
C) Deregulation 
D) Reregulation

Question 8

When a local restaurant offers a discount to senior citizens,they have violated the price discrimination provisions of the Robinson-Patman Act.

Accepted Answer

A) True 
 B)False

Question 9

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 10

Though high-profile business bankruptcies such as Kmart and United Airlines dominate the news,over 90 percent of bankruptcy filings each year are by individuals.

Accepted Answer

A) True 
 B)False

Question 11

Business law is enforceable by the courts.

Accepted Answer

A) True 
 B)False

Question 12

Trademarks generally belong to the owner forever,as long as they are properly registered and renewed every 10 years.

Accepted Answer

A) True 
 B)False

Question 13

Money collected from excise taxes goes toward a specific purpose.

Accepted Answer

A) True 
 B)False

Question 14

Big Johnson Products charges Moe's Meats a lower price for goods because Moe and Johnson play golf together regularly.Big Johnson charges other firms similar to Moe's Meats more for the same products and this is beginning to hurt the business of the other firms.In fact,Moe's Meats is taking so much business away from the others due to its lower prices that the other firms are in danger of going out of business.This is an example of:

Accepted Answer

A) price discrimination. 
B) price reversal. 
C) price-cutting. 
D) price maintenance. 
A) price discrimination. 
B) price reversal. 
C) price-cutting. 
D) price maintenance.

Question 15

The Nutrition Labeling and Education Act of 1990 requires truthful and uniform nutritional labeling on all food the FDA regulates.

Accepted Answer

A) True 
 B)False

Question 16

Recent legislation encourages the use of submarine patents.

Accepted Answer

A) True 
 B)False

Question 17

The Nike Swoosh and the Golden Arches of McDonald's are examples of a:

Accepted Answer

A) trademark. 
B) submarine patent. 
C) copyright. 
D) commercially protected symbol. 
A) trademark. 
B) submarine patent. 
C) copyright. 
D) commercially protected symbol.

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

One result of deregulation in the airline industry has been:

Accepted Answer

A) less intense competition. 
B) increase aviation related fatalities. 
C) higher prices for consumers. 
D) lower prices for consumers. 
A) less intense competition. 
B) increase aviation related fatalities. 
C) higher prices for consumers. 
D) lower prices for consumers.

Question 20

Happy Pat's Pizza Parlor is concerned about a vendor's demand that he purchase unwanted supplies in order to buy the supplies he does want.This practice is known as:

Accepted Answer

A) a binding contract. 
B) a tying contract. 
C) price discrimination. 
D) interlocking directorates. 
A) a binding contract. 
B) a tying contract. 
C) price discrimination. 
D) interlocking directorates.

Exam 24: Appendix: Working Within the Legal Environment

Implied warranties are guarantees legally imposed on the seller.

Mary Ann owns a rare Monet painting and she has agreed to a contract whereby she will sell it to the Museum of Art for $5.3 million.At the last minute she decides she cannot bear to part with her painting and will not sell it to the Museum.The Museum can sue Mary Ann for specific performance.

Copyrights can be passed on to the creator's heirs.

Warren Tee was injured using a hair dryer manufactured by the Whoopee Electrical Products Company.Warren has contacted a lawyer because he feels that Whoopee is responsible for his injury based on the legal principle of:

Administrative agencies are given the power by Congress to pass rules and regulations within a specific area of authority.

The body of law created by court decisions rendered by judges is called __________ law.

________ is the process of eliminating laws and regulations that hinder competition.

When a local restaurant offers a discount to senior citizens,they have violated the price discrimination provisions of the Robinson-Patman Act.

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.

Though high-profile business bankruptcies such as Kmart and United Airlines dominate the news,over 90 percent of bankruptcy filings each year are by individuals.

Business law is enforceable by the courts.

Trademarks generally belong to the owner forever,as long as they are properly registered and renewed every 10 years.

Money collected from excise taxes goes toward a specific purpose.

The Nutrition Labeling and Education Act of 1990 requires truthful and uniform nutritional labeling on all food the FDA regulates.

Recent legislation encourages the use of submarine patents.

The Nike Swoosh and the Golden Arches of McDonald's are examples of a:

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

One result of deregulation in the airline industry has been:

Happy Pat's Pizza Parlor is concerned about a vendor's demand that he purchase unwanted supplies in order to buy the supplies he does want.This practice is known as:

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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