Exam 21: Appendix: Working Within the Legal Environment

Which of the following holds a company liable for negligence in the production, design, sale, or use of products the firm markets?

Negotiable instruments provide a conditional promise to pay a specified amount of money.

Congress prohibited discrimination against people with physical disabilities when they enacted the Americans with Disabilities Act. This is an example of common law.

Which of the following was designed to simplify and standardize the laws affecting businesses involved in interstate trade?

A company has to be insolvent before it can file for Chapter 11 bankruptcy.

The Dodd-Frank Wall Street Reform and Consumer Protection Act evolved from the mortgage industry meltdown. The agency that was created to provide consumers with accurate information so they can make informed decisions about loans and other financial instruments is known as the

In which of the following does the creditor start legal procedures?

If an automobile manufacturer unknowingly sells a defective product that causes an injury, the manufacturer is protected from product liability lawsuits.

A patient injured through the negligence of a health care provider can be awarded compensation through the tort law system.

Chapter 11 bankruptcy is a way for sick companies to recover and is designed to help both debtors and creditors find the best solution.

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

The language used in statutory law often requires interpretation by the courts.

The remedy for a tort is

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

Recent legislation encourages the use of submarine patents.

Administrative agencies are given the power by Congress to pass rules and regulations within a specific area of authority.

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.

If Fairfield University violates its housing contract with a student, the student is prohibited from suing the university for damages because the contract was for the delivery of services rather than the delivery of goods.

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

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