Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

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 3

Though high-profile business bankruptcies such as Sports Authority and Radio Shack dominate the news, over 90 percent of bankruptcy filings each year are by individuals.

Accepted Answer

A) True 
 B)False

Question 4

Decisions made by judges in previous cases are an important part of common law.

Accepted Answer

A) True 
 B)False

Question 5

A warranty guarantees that the product sold will be acceptable for the purpose for which the buyer intends to use it.

Accepted Answer

A) True 
 B)False

Question 6

One result of deregulation in the airline industry has been

Accepted Answer

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

Question 7

The Robinson-Patman Act prohibits price discrimination in all transactions except business-to-business transactions.

Accepted Answer

A) True 
 B)False

Question 8

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.

Question 9

One purpose of the Robinson-Patman Act is to outlaw price differences that substantially weaken competition.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

The FTC has jurisdiction over false or misleading advertising.

Accepted Answer

A) True 
 B)False

Question 13

Under contract law, an agreement for the sale of goods worth $50 or more must be in writing.

Accepted Answer

A) True 
 B)False

Question 14

Because it is no longer used in construction today, National Asbestos Manufacturing cannot be sued for damages today that are caused by asbestos that may still remain in some buildings.

Accepted Answer

A) True 
 B)False

Question 15

Willow is concerned that she is not getting full disclosure of information from a mortgage broker who is hoping to refinance the mortgage on her house. Having recently studied business law, you suggest to Willow that she contact the ________ that was formed after the Dodd-Frank Wall Street Reform and Consumer Protection Act became law.

Accepted Answer

A)  Federal Trade Commission (FT
C)  
B)  Consumer Financial Protection Bureau (CFP
B)  
C)  Due Diligence Agency (DD
A)  
D)  Financial Fairness Consortium (FF
C)

Question 16

Bankruptcy is the legal process by which a person, business, or government entity that is unable to meet financial obligations is relieved of those debts by a court.

Accepted Answer

A) True 
 B)False

Question 17

Administrative agencies actually have a greater impact on businesses than courts do.

Accepted Answer

A) True 
 B)False

Question 18

In voluntary bankruptcy cases the creditors voluntarily start legal action against the debtor.

Accepted Answer

A) True 
 B)False

Question 19

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

Question 20

Which of the following is a requirement for commercial paper to be considered a negotiable instrument?

Accepted Answer

A)  It must be signed in approval by a third party. 
B)  It must contain a conditional promise to pay. 
C)  It must be a promise to pay a specified amount of money. 
D)  It must be an oral agreement between two or more parties.

Exam 21: Working Within the Legal Environment

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

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 Sports Authority and Radio Shack dominate the news, over 90 percent of bankruptcy filings each year are by individuals.

Decisions made by judges in previous cases are an important part of common law.

A warranty guarantees that the product sold will be acceptable for the purpose for which the buyer intends to use it.

One result of deregulation in the airline industry has been

The Robinson-Patman Act prohibits price discrimination in all transactions except business-to-business transactions.

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

One purpose of the Robinson-Patman Act is to outlaw price differences that substantially weaken competition.

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

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

The FTC has jurisdiction over false or misleading advertising.

Under contract law, an agreement for the sale of goods worth $50 or more must be in writing.

Because it is no longer used in construction today, National Asbestos Manufacturing cannot be sued for damages today that are caused by asbestos that may still remain in some buildings.

Bankruptcy is the legal process by which a person, business, or government entity that is unable to meet financial obligations is relieved of those debts by a court.

Administrative agencies actually have a greater impact on businesses than courts do.

In voluntary bankruptcy cases the creditors voluntarily start legal action against the debtor.

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

Which of the following is a requirement for commercial paper to be considered a negotiable instrument?