Question 1

The number of Americans filing for bankruptcy has decreased as a result of the Bankruptcy Reform Act.

Accepted Answer

A) True 
 B)False  False

Question 2

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 patent 
A)  a trademark 
B)  a copyright 
C)  the Uniform Commercial Code 
D)  a patent B

Question 3

Consumerism is a social movement that seeks to increase and to strengthen the rights and powers of buyers in relation to sellers.

Accepted Answer

A) True 
 B)False  True

Question 4

Common law relies on decisions made by judges in previous cases. These earlier decisions are called

Accepted Answer

A)  administrative guidelines. 
B)  precedents. 
C)  arbitration rules. 
D)  statutory models. 
A)  administrative guidelines. 
B)  precedents. 
C)  arbitration rules. 
D)  statutory models.

Question 5

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 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

When Fitness Fanatics, Inc. agrees to replace or repair your defective stationary bike at no charge to you, Fitness Fanatics is fulfilling a full warranty on your bike.

Accepted Answer

A) True 
 B)False

Question 8

Filing for bankruptcy under the Chapter 11 provisions allows a company to reorganize and continue operations while paying only a proportion of its debts.

Accepted Answer

A) True 
 B)False

Question 9

Congress is responsible for passing legislation that is enforced by the judiciary.

Accepted Answer

A) True 
 B)False

Question 10

Several states now allow for competition in the electric power industry. Business customers, for example, can purchase their electric service from several different utility companies. This activity reflects a movement toward ________ in the utility industry.

Accepted Answer

A)  re-regulation 
B)  monopoly pricing 
C)  deregulation 
D)  privatizing 
A)  re-regulation 
B)  monopoly pricing 
C)  deregulation 
D)  privatizing

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

A(n) ________ guarantees that the product you buy will conform to the customary standards of the trade/industry.

Accepted Answer

A)  implied warranty 
B)  express warranty 
C)  uniform warranty 
D)  commercial warranty 
A)  implied warranty 
B)  express warranty 
C)  uniform warranty 
D)  commercial warranty

Question 13

Business law refers to a body of regulations that, when enforced, provides a framework within which business may be conducted.

Accepted Answer

A) True 
 B)False

Question 14

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 15

McDonald's was the subject of a product liability suit charging that its food caused obesity, diabetes, and other health problems in children.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following refers to a tax designed to reduce the consumption of a specific good?

Accepted Answer

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

Question 17

A warranty guarantees that

Accepted Answer

A)  the seller will replace or repair the product at no charge if the customer finds a cheaper substitute. 
B)  the buyer has read and understood the information provided in the owner's manual. 
C)  consumers will have access to a customer complaint resolution hot line. 
D)  the product sold will be acceptable for the purpose for which the buyer intends to use it. 
A)  the seller will replace or repair the product at no charge if the customer finds a cheaper substitute. 
B)  the buyer has read and understood the information provided in the owner's manual. 
C)  consumers will have access to a customer complaint resolution hot line. 
D)  the product sold will be acceptable for the purpose for which the buyer intends to use it.

Question 18

Appellate courts hear the appeals of decisions made at the trial court level brought by the losing party in the case.

Accepted Answer

A) True 
 B)False

Question 19

The social movement designed to increase and strengthen the rights and powers of buyers in business transactions is called

Accepted Answer

A)  environmentalism. 
B)  capitalism. 
C)  socialism. 
D)  consumerism. 
A)  environmentalism. 
B)  capitalism. 
C)  socialism. 
D)  consumerism.

Question 20

Julian was injured using a hair dryer manufactured by Epic Electronics. Julian has contacted a lawyer because he feels that Epic 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.

Exam 21: Working Within the Legal Environment

The number of Americans filing for bankruptcy has decreased as a result of the Bankruptcy Reform Act.

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

Consumerism is a social movement that seeks to increase and to strengthen the rights and powers of buyers in relation to sellers.

Common law relies on decisions made by judges in previous cases. These earlier decisions are called

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

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

When Fitness Fanatics, Inc. agrees to replace or repair your defective stationary bike at no charge to you, Fitness Fanatics is fulfilling a full warranty on your bike.

Filing for bankruptcy under the Chapter 11 provisions allows a company to reorganize and continue operations while paying only a proportion of its debts.

Congress is responsible for passing legislation that is enforced by the judiciary.

Several states now allow for competition in the electric power industry. Business customers, for example, can purchase their electric service from several different utility companies. This activity reflects a movement toward ________ in the utility industry.

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

A(n) ________ guarantees that the product you buy will conform to the customary standards of the trade/industry.

Business law refers to a body of regulations that, when enforced, provides a framework within which business may be conducted.

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

McDonald's was the subject of a product liability suit charging that its food caused obesity, diabetes, and other health problems in children.

Which of the following refers to a tax designed to reduce the consumption of a specific good?

A warranty guarantees that

Appellate courts hear the appeals of decisions made at the trial court level brought by the losing party in the case.

The social movement designed to increase and strengthen the rights and powers of buyers in business transactions is called

Julian was injured using a hair dryer manufactured by Epic Electronics. Julian has contacted a lawyer because he feels that Epic is responsible for his injury based on the legal principle of

Taking Risks and Making Profits Within the Dynamic Business Environment

Understanding Economics and How It 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

Structuring Organizations for Todays Challenges

Production and Operations Management

Motivating Employees

Human Resource Management: Finding and Keeping the Best Employees

Dealing With Employeemanagement Issues

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

Using Technology to Manage Information

Managing Risk

Managing Personal Finances

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