Question 1

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 2

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

Accepted Answer

A) True 
 B)False

Question 3

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 4

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

Accepted Answer

A)   precedent
B)   statutory
C)   common
D)   tortE) B) and C)
F) A) and D)

Question 5

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

Question 6

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 7

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.E) A) and D)
F) C) and D)

Question 8

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 creditE) A) and B)
F) A) and C)

Question 9

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)   privatizingE) All of the above
F) A) and C)

Question 10

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 11

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 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 warrantyE) None of the above
F) B) and C)

Question 13

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.E) C) and D)
F) A) and C)

Question 14

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 15

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 16

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 17

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

Accepted Answer

A) True 
 B)False

Question 18

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 19

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.E) A) and B)
F) B) and D)

Question 20

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) All of the above
F) A) and D) B

Exam 21: Working Within the Legal Environment

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedTrue

A warranty guarantees that

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedFalse

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.

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

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

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

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedB

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True

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False

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B