Question 1

The Griggs v. Duke Power Company (1971) case established a precedent on the need to use job-related tests in employment practices. Similar court cases have been decided based on this decision. This is an example of

Accepted Answer

A)  common law. 
B)  statutory law. 
C)  administrative law. 
D)  criminal law.

Question 2

The rule of strict product liability holds a firm liable for a defective product only if the firm knowingly placed a hazardous product on the market.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is true of a copyright?

Accepted Answer

A)  It is a specific representation that buyers rely on regarding the goods they purchase. 
B)  It protects a creator's rights to materials such as books, paintings, and cartoons. 
C)  It is filed with the state legislature. 
D)  It is good for 20 years.

Question 4

A bankruptcy allows creditors to get at least part of their money when there are assets available to divide among the creditors.

Accepted Answer

A) True 
 B)False

Question 5

________ instruments are forms of commercial paper that are transferable among businesses and individuals that represent a promise to pay a specified amount.

Accepted Answer

A)  Uniform 
B)  Contract 
C)  Express 
D)  Negotiable

Question 6

The City of Lawtown filed suit against certain gun manufacturers for financial payments to cover the costs of police work and medical care as a result of gun violence. This suit was based on the legal principle of

Accepted Answer

A)  unintentional torts. 
B)  statutory consideration. 
C)  strict product liability. 
D)  common law.

Question 7

Which of the following would cause a contract to be void?

Accepted Answer

A)  consideration 
B)  mutual acceptance 
C)  competent parties 
D)  duress

Question 8

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.

Question 9

The Federal Trade Commission Act of 1914 prohibits minors from entering into contracts.

Accepted Answer

A) True 
 B)False

Question 10

Lawsuits against the tobacco industry are examples of tort law.

Accepted Answer

A) True 
 B)False

Question 11

Nolan and Sadie own a very successful Cajun restaurant. They recently built their own building and own all of the decorations in the restaurant, along with the equipment needed to run the business. They will pay real property taxes on the building and land and personal property taxes on the decorations and equipment.

Accepted Answer

A) True 
 B)False

Question 12

What type of law is tort law? Explain what a tort is as well as the meaning of negligence.

Accepted Answer

The answer of What type of law is tort law?...

Question 13

Some economists advocate a ________ on the consumption of such products as gasoline, liquor, cigarettes, and even soda, in the hope that consumers will think about how their purchases are having negative impacts on themselves and their environment.

Accepted Answer

A)  progressive tax 
B)  sin tax 
C)  flat tax 
D)  tax credit

Question 14

Paul is a renowned nature photographer. Each of his works is copyrighted. This means that anyone can use his photos so long as they give Paul notice.

Accepted Answer

A) True 
 B)False

Question 15

Common law is the body of law established through legislative action by Congress.

Accepted Answer

A) True 
 B)False

Question 16

Producers of government-approved drugs and chemicals cannot be sued by individuals who develop side effects years later.

Accepted Answer

A) True 
 B)False

Question 17

Companies that produced asbestos decades ago are still subject to the strict product liability provisions of federal tort law.

Accepted Answer

A) True 
 B)False

Question 18

Toyota and General Motors have both been involved in major product liability cases.

Accepted Answer

A) True 
 B)False

Question 19

Alvin advertises on Craig's List to sell his used lawnmower for $60. Roy tested the lawnmower and then offered Alvin $50 for it. In this case

Accepted Answer

A)  the two parties have created a legally enforceable contract. 
B)  Roy'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 20

Unlike a patent, trademarks are not protected from infringement.

Accepted Answer

A) True 
 B)False

Exam 21: Working Within the Legal Environment

The Griggs v. Duke Power Company (1971) case established a precedent on the need to use job-related tests in employment practices. Similar court cases have been decided based on this decision. This is an example of

The rule of strict product liability holds a firm liable for a defective product only if the firm knowingly placed a hazardous product on the market.

Which of the following is true of a copyright?

A bankruptcy allows creditors to get at least part of their money when there are assets available to divide among the creditors.

________ instruments are forms of commercial paper that are transferable among businesses and individuals that represent a promise to pay a specified amount.

The City of Lawtown filed suit against certain gun manufacturers for financial payments to cover the costs of police work and medical care as a result of gun violence. This suit was based on the legal principle of

Which of the following would cause a contract to be void?

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?

The Federal Trade Commission Act of 1914 prohibits minors from entering into contracts.

Lawsuits against the tobacco industry are examples of tort law.

What type of law is tort law? Explain what a tort is as well as the meaning of negligence.

Some economists advocate a ________ on the consumption of such products as gasoline, liquor, cigarettes, and even soda, in the hope that consumers will think about how their purchases are having negative impacts on themselves and their environment.

Paul is a renowned nature photographer. Each of his works is copyrighted. This means that anyone can use his photos so long as they give Paul notice.

Common law is the body of law established through legislative action by Congress.

Producers of government-approved drugs and chemicals cannot be sued by individuals who develop side effects years later.

Companies that produced asbestos decades ago are still subject to the strict product liability provisions of federal tort law.

Toyota and General Motors have both been involved in major product liability cases.

Alvin advertises on Craig's List to sell his used lawnmower for $60. Roy tested the lawnmower and then offered Alvin $50 for it. In this case

Unlike a patent, trademarks are not protected from infringement.