Exam 22: The Legal Environment: Business Law and Government Regulation

George Washington signed the first patent law in 1790.

John offers to buy steel from Tom in Cleveland for a specific price.Tom therefore plans to ship to John and does not sell the steel to another buyer.Before shipping,Tom gets a phone call from John canceling the deal.Is John still bound by his contract with Tom?

To be enforceable,a contract must be written.

Liquidation bankruptcies are handled under Chapter 7 of the Bankruptcy Reform Act of 1978.

Product liability is built on the principle that a person who introduces a product into the stream of commerce owes a duty of care,not only to the person who first purchases the product,but also to anyone else who might foreseeably come into contact with it.

Bankruptcy proceedings can be filed by the owner or his/her creditors.

Employees cannot bind a company to an agreement unless the owner intended for them to do so.

A valid contract has three elements.

With only two exceptions,an offer can be revoked at any time prior to acceptance.The two exceptions are an option contract which has a stated time for which the offer is made,and an offer made by a merchant of goods who has stated the length of time the offer is open, (i.e. ,on sale at this price through the end of this month).

A ________ is any distinctive work,symbol,name,logo,etc. ,that a company uses to identify the origin of a product or to distinguish it from other products.

Sam's Appliance Shop turns a past due account over to Jake's Collection Agency.Jake calls the customer at 4 a.m.every day and threatens him.This is illegal behavior on the part of Jake.

In a Chapter 7 bankruptcy:

In 1938,Congress passed the ________ creating an agency responsible for establishing standards for drugs,inspecting food and drug manufacturers,performing food-and drug-related research,etc.

The owner of a stolen credit card is liable for all charges on the card even if he/she notifies the credit card company of the theft before any unauthorized use of the card is made.

Generally,the Code assigns the obligations of "good faith" (defined as "honesty in fact in the conduct or transaction concerned")and "commercial reasonableness" (commercial standards of fair dealing)to seller only.

The Code does not cover contracts for the sale of services.

If a contract for the sale of goods omits the place for delivery,the Code states that delivery will take place at:

Passed in 1976 to deal with the disposal of solid waste,the ________ specifies how landfills should be managed and hazardous waste disposed of.

Jack started his business in year 2000.Due to lack of planning and bad cash flow,Jack files for bankruptcy and the business ceases to exist.This is a form of:

The Clean Water Act,passed in 1972,has achieved its 1983 and 1985 goals for clean water,even though it was five years late in reaching them.