Question 1

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

Question 2

Chapter 13 proceedings are more complicated than Chapter 7 bankruptcy proceedings.

Accepted Answer

A) True 
 B)False

Question 3

A patent protects an inventor's right to a product or process.

Accepted Answer

A) True 
 B)False

Question 4

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 made it easier for individuals to eliminate most debts in a bankruptcy.

Accepted Answer

A) True 
 B)False

Question 5

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 6

A software development firm based in California and conducting business in Wyoming is unsure about the differences in state laws regarding business transactions. What body of laws standardizes interstate business regulations?

Accepted Answer

A)   Uniform Commercial Code
B)   Universal Business Regulations
C)   National Commercial Rules
D)   Unified Commercial RegulationsE) None of the above
F) A) and D)

Question 7

Louis opened a new bakery. He had always admired the cute, friendly face of the Pillsbury Doughboy so as a tribute to Pillsbury, he decided to use it as his company's logo. Not long after Pillsbury sued him for

Accepted Answer

A)   corporate liability.
B)   trademark infringement.
C)   profit minimization.
D)   patent infringement.E) A) and B)
F) A) and D)

Question 8

Requiring a Tire Warehouse to carry AutoPRO Performance Tires in order to sell AutoPRO Performance Batteries is prohibited by the Robinson-Patman Act.

Accepted Answer

A) True 
 B)False

Question 9

One of the benefits that deregulation is supposed to provide to customers is

Accepted Answer

A)   fewer choices.
B)   reduced prices.
C)   less quality.
D)   improved government oversight.E) A) and B)
F) C) and D)

Question 10

A government policy aimed at reducing the purchase of a specific good through increased taxes has been most often applied to

Accepted Answer

A)   cigarettes and liquor.
B)   sports cars.
C)   white bread.
D)   diet soft drinks.E) B) and D)
F) None of the above

Question 11

Which of the following is a requirement for commercial paper to be considered a negotiable instrument?

Accepted Answer

A)   It must be signed in approval by a third party.
B)   It must contain a conditional promise to pay.
C)   It must be a promise to pay a specified amount of money.
D)   It must be an oral agreement between two or more parties.E) All of the above
F) A) and D)

Question 12

Copyrights can be passed on to the creator's heirs.

Accepted Answer

A) True 
 B)False

Question 13

The European Union currently levies certain Internet taxes.

Accepted Answer

A) True 
 B)False

Question 14

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 D)
F) B) and C)

Question 15

________ is the legal process by which a person, business, or government entity unable to meet financial obligations is relieved of those debts.

Accepted Answer

A)   Emancipation
B)   Financial release
C)   Negligence
D)   BankruptcyE) B) and D)
F) B) and C)

Question 16

Income taxes include taxes paid on real and personal property.

Accepted Answer

A) True 
 B)False

Question 17

The primary objective of a sin tax is to generate additional revenue for the government.

Accepted Answer

A) True 
 B)False

Question 18

The purpose of the Sherman Antitrust Act was to

Accepted Answer

A)   encourage competition by restraining the growth of monopolies.
B)   standardize the level of competition.
C)   encourage the growth of large-scale efficiency found in big businesses.
D)   minimize the inconsistency of multiple dealers of a single product.E) A) and B)
F) None of the above

Question 19

The Sarbanes-Oxley Act requires CEOs to verify the accuracy of their firms' financial statements to the SEC.

Accepted Answer

A) True 
 B)False

Question 20

Chapter 13 bankruptcy permits individuals and small-business owners to repay creditors over a period of three to five years.

Accepted Answer

A) True 
 B)False

Exam 21: Appendix: Working Within the Legal Environment

Income taxes include taxes paid on real and personal property.

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

The Sarbanes-Oxley Act requires CEOs to verify the accuracy of their firms' financial statements to the SEC.

Correct AnswerverifiedShow Answer

Requiring a Tire Warehouse to carry AutoPRO Performance Tires in order to sell AutoPRO Performance Batteries is prohibited by the Robinson-Patman Act.

Correct AnswerverifiedShow Answer

Chapter 13 proceedings are more complicated than Chapter 7 bankruptcy proceedings.

Correct AnswerverifiedShow Answer

A government policy aimed at reducing the purchase of a specific good through increased taxes has been most often applied to

Correct AnswerverifiedShow Answer

The European Union currently levies certain Internet taxes.

Correct AnswerverifiedShow Answer

A software development firm based in California and conducting business in Wyoming is unsure about the differences in state laws regarding business transactions. What body of laws standardizes interstate business regulations?

Correct AnswerverifiedShow Answer

One of the benefits that deregulation is supposed to provide to customers is

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

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 made it easier for individuals to eliminate most debts in a bankruptcy.

Correct AnswerverifiedShow Answer

The purpose of the Sherman Antitrust Act was to

Correct AnswerverifiedShow Answer

________ is the legal process by which a person, business, or government entity unable to meet financial obligations is relieved of those debts.

Correct AnswerverifiedShow Answer

Chapter 13 bankruptcy permits individuals and small-business owners to repay creditors over a period of three to five years.

Correct AnswerverifiedShow Answer

Louis opened a new bakery. He had always admired the cute, friendly face of the Pillsbury Doughboy so as a tribute to Pillsbury, he decided to use it as his company's logo. Not long after Pillsbury sued him for

Correct AnswerverifiedShow Answer

A patent protects an inventor's right to a product or process.

Correct AnswerverifiedShow Answer

Which of the following is a requirement for commercial paper to be considered a negotiable instrument?

Correct AnswerverifiedShow Answer

Copyrights can be passed on to the creator's heirs.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The primary objective of a sin tax is to generate additional revenue for the government.

Correct AnswerverifiedShow Answer

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