Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Utilizing the bankruptcy laws, Yankee Distribution petitioned the court to reorganize and continue operations while paying only a limited proportion of its current debts. This represents an example of a Chapter ________ bankruptcy.

Accepted Answer

A)   7
B)   11
C)   13
D)   14E) A) and C)
F) C) and D)

Question 3

The intent of the Sherman Antitrust Act of 1890 was to encourage the growth of large business organizations in the U.S. in order to compete with more established firms in Europe.

Accepted Answer

A) True 
 B)False

Question 4

Business law creates the legal framework for the enforcement of criminal statutes.

Accepted Answer

A) True 
 B)False

Question 5

The changing nature of U.S. business from manufacturing to knowledge technology has led to the call for new levels of regulation from federal agencies.

Accepted Answer

A) True 
 B)False

Question 6

Explain two of the major U.S. antitrust laws.

Accepted Answer

Students should choose two from among th...

Question 7

Public utility commissions are federal agencies.

Accepted Answer

A) True 
 B)False

Question 8

Under contract law, "damages" are the monetary settlements awarded to a person who is injured by a breach of contract.

Accepted Answer

A) True 
 B)False

Question 9

The two main purposes of taxes are:

Accepted Answer

A)   to raise money for taxpayers and to encourage foreign governments to behave in certain ways.
B)   to raise money for government funding and to encourage or discourage certain taxpayer behaviors.
C)   to encourage businesses to make a profit and encourage foreign governments to invest in the U.S.
D)   to strengthen monetary and fiscal policies.E) B) and D)
F) A) and D)

Question 10

When McDonald's lost a lawsuit to a person severely burned by hot coffee McDonald's was found to be guilty of:

Accepted Answer

A)   negligence.
B)   liable.
C)   intentional tort violation.
D)   packaging liability.E) B) and D)
F) None of the above

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

The Clayton Act prohibits interlocking directorates.

Accepted Answer

A) True 
 B)False

Question 13

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 14

The purpose of governmental deregulation is to eliminate laws that seem to hinder competition.

Accepted Answer

A) True 
 B)False

Question 15

Submarine patents are primarily designed to generate large patent royalties for their owners.

Accepted Answer

A) True 
 B)False

Question 16

The FTC has jurisdiction over false or misleading advertising.

Accepted Answer

A) True 
 B)False

Question 17

If State 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.

Accepted Answer

A) True 
 B)False

Question 18

The Federal Trade Commission acts to stop false and deceptive advertising and labeling.

Accepted Answer

A) True 
 B)False

Question 19

Under the doctrine of strict product liability, a manufacturer can be held liable:

Accepted Answer

A)   even if when the product was introduced everyone agreed it was safe.
B)   only if the firm knowingly sold a hazardous product.
C)   only if the firm purposefully was negligent in the design or production of the product.
D)   only if the firm intentionally introduced a defective product.E) C) and D)
F) B) and C)

Question 20

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

Exam 22: Extension: Working Within the Legal Environment

The changing nature of U.S. business from manufacturing to knowledge technology has led to the call for new levels of regulation from federal agencies.

Correct AnswerverifiedShow Answer

Business law creates the legal framework for the enforcement of criminal statutes.

Correct AnswerverifiedShow Answer

The two main purposes of taxes are:

Correct AnswerverifiedShow Answer

The Federal Trade Commission acts to stop false and deceptive advertising and labeling.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

If State 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.

Correct AnswerverifiedShow Answer

The intent of the Sherman Antitrust Act of 1890 was to encourage the growth of large business organizations in the U.S. in order to compete with more established firms in Europe.

Correct AnswerverifiedShow Answer

The purpose of governmental deregulation is to eliminate laws that seem to hinder competition.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Utilizing the bankruptcy laws, Yankee Distribution petitioned the court to reorganize and continue operations while paying only a limited proportion of its current debts. This represents an example of a Chapter ________ bankruptcy.

Correct AnswerverifiedShow Answer

Under the doctrine of strict product liability, a manufacturer can be held liable:

Correct AnswerverifiedShow Answer

Under contract law, "damages" are the monetary settlements awarded to a person who is injured by a breach of contract.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Public utility commissions are federal agencies.

Correct AnswerverifiedShow Answer

The FTC has jurisdiction over false or misleading advertising.

Correct AnswerverifiedShow Answer

The Clayton Act prohibits interlocking directorates.

Correct AnswerverifiedShow Answer

Submarine patents are primarily designed to generate large patent royalties for their owners.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

When McDonald's lost a lawsuit to a person severely burned by hot coffee McDonald's was found to be guilty of:

Correct AnswerverifiedShow Answer

Explain two of the major U.S. antitrust laws.

Correct AnswerverifiedStudents should choose two from among th...View AnswerShow Answer

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Students should choose two from among th...
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