Question 1

In order to be legally binding, a contract must be a written agreement between two or more parties.

Accepted Answer

A) True 
 B)False

Question 2

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 3

In order for a contract to be legal, mutual acceptance is achieved when one party is under duress.

Accepted Answer

A) True 
 B)False

Question 4

Exclusive dealing means selling goods with the condition that the buyer will not buy goods from a competitor.

Accepted Answer

A) True 
 B)False

Question 5

Lower courts must abide by the precedents set by higher courts.

Accepted Answer

A) True 
 B)False

Question 6

If a contract is to be legally binding, both parties must give consideration.

Accepted Answer

A) True 
 B)False

Question 7

Statutory law refers to written legislation.

Accepted Answer

A) True 
 B)False

Question 8

Requiring that both parties are competent for a contract to be legal protects those who might be unable to protect themselves.

Accepted Answer

A) True 
 B)False

Question 9

Tort law involves criminal acts where victims can be awarded compensation.

Accepted Answer

A) True 
 B)False

Question 10

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.E) B) and D)
F) None of the above

Question 11

The Clayton Act prohibits interlocking directorates.

Accepted Answer

A) True 
 B)False

Question 12

Without the permission of the inventor, Five Star Automobile Manufacturing copied the engine design of an innovative competitor. What is Five Star guilty of?

Accepted Answer

A)   corporate liability
B)   trademark infringement
C)   profit minimization
D)   patent infringementE) B) and C)
F) All of the above

Question 13

Which of the following protects the original work of authors and artists (i.e., their books, photos, or cartoons) ?

Accepted Answer

A)   a trademark
B)   a copyright
C)   the Uniform Commercial Code
D)   a patentE) A) and B)
F) C) and D)

Question 14

Negligence, in tort law, deals with behavior that causes intentional harm or injury.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A)   Downsizing
B)   Restructuring
C)   Deregulation
D)   ReregulationE) B) and C)
F) C) and D)

Question 16

________ refers to rules, statutes, codes, and regulations established to provide a legal framework within which business may be conducted.

Accepted Answer

A)   Common law
B)   Statutory law
C)   Bankruptcy law
D)   Business lawE) All of the above
F) None of the above

Question 17

The FTC has jurisdiction over false or misleading advertising.

Accepted Answer

A) True 
 B)False

Question 18

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.E) A) and B)
F) All of the above

Question 19

The offer of a 3-year or 36,000-mile warranty by a car dealer on a new vehicle is an example of an implied warranty.

Accepted Answer

A) True 
 B)False

Question 20

The Sherman Antitrust Act forbids actual monopolies or attempts to monopolize any part of commerce.

Accepted Answer

A) True 
 B)False

Exam 21: Appendix: Working Within the Legal Environment

In order to be legally binding, a contract must be a written agreement between two or more parties.

Correct AnswerverifiedShow Answer

Requiring that both parties are competent for a contract to be legal protects those who might be unable to protect themselves.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

If a contract is to be legally binding, both parties must give consideration.

Correct AnswerverifiedShow Answer

In order for a contract to be legal, mutual acceptance is achieved when one party is under duress.

Correct AnswerverifiedShow Answer

Negligence, in tort law, deals with behavior that causes intentional harm or injury.

Correct AnswerverifiedShow Answer

Lower courts must abide by the precedents set by higher courts.

Correct AnswerverifiedShow Answer

Statutory law refers to written legislation.

Correct AnswerverifiedShow Answer

The Clayton Act prohibits interlocking directorates.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is true of a copyright?

Correct AnswerverifiedShow Answer

The Sherman Antitrust Act forbids actual monopolies or attempts to monopolize any part of commerce.

Correct AnswerverifiedShow Answer

Without the permission of the inventor, Five Star Automobile Manufacturing copied the engine design of an innovative competitor. What is Five Star guilty of?

Correct AnswerverifiedShow Answer

Tort law involves criminal acts where victims can be awarded compensation.

Correct AnswerverifiedShow Answer

Exclusive dealing means selling goods with the condition that the buyer will not buy goods from a competitor.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The FTC has jurisdiction over false or misleading advertising.

Correct AnswerverifiedShow Answer

________ refers to rules, statutes, codes, and regulations established to provide a legal framework within which business may be conducted.

Correct AnswerverifiedShow Answer

The offer of a 3-year or 36,000-mile warranty by a car dealer on a new vehicle is an example of an implied warranty.

Correct AnswerverifiedShow Answer

Which of the following protects the original work of authors and artists (i.e., their books, photos, or cartoons) ?

Correct AnswerverifiedShow Answer

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