Deck 21: Working Within the Legal Environment

Question 1

Laws regulating marriage and personal injury liability are part of our body of criminal law.

Answer 1

False

Question 2

Statutory law refers to written legislation.

Answer 2

True

Question 3

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

Answer 3

True

Question 4

The U.S. court system is organized solely at the federal and state levels.

Question 5

Trial courts hear cases involving criminal and civil law.

Question 6

Administrative agencies actually have a greater impact on businesses than courts do.

Question 7

Common law is the body of law established through legislative action by Congress.

Question 8

The Federal Trade Commission enforces laws and guidelines regarding unfair business practices.

Question 9

The executive branch of the government is responsible for overseeing the legal system.

Question 10

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

Question 11

Businesses today prefer to have the government set the standards for acceptable behavior.

Question 12

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

Question 13

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

Question 14

Common law is based on the precedent of earlier court decisions.

Question 15

Lower courts must abide by the precedents set by higher courts.

Question 16

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

Question 17

Business law is enforceable by the courts.

Question 18

The government's involvement in governing the behavior of business people seems to be increasing.

Question 19

Criminal law defines crimes, establishes punishments, and includes payment for personal injury.

Question 20

Laws regulating marriage and the payment for personal injuries are part of our body of civil law.

Question 21

Intentional and unintentional behavior that causes harm or injury is an example of a tort.

Question 22

The Federal Trade Commission issues and interprets rules and regulations regarding business activities. The Federal Trade Commission is a governmental administrative agency.

Question 23

The rule of strict product liability holds a firm liable for a defective product only if the firm knowingly placed a hazardous product on the market.

Question 24

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

Question 25

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

Question 26

Bigbux Bank recently changed its advertising campaign. It now announces the bank has the lowest bank fees in the country even though it has not done research to discover whether this is true. Business law is the framework within which a competitor could take Bigbux to court in the event its claims are not true.

Question 27

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

Question 28

A public utility commission sets rates that can be charged by various public utilities to prevent unfair pricing by regulated monopolies. These public utility commissions are examples of state administrative agencies.

Question 29

An intentional tort is a willful act that results in injury.

Question 30

Tort law includes product liability cases.

Question 31

Public utility commissions are federal agencies.

Question 32

Lawsuits against the tobacco industry are examples of tort law.

Question 33

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

Question 34

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

Question 35

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

Question 36

Companies that produced asbestos decades ago are still subject to the strict product liability provisions of federal tort law.

Question 37

The St. Louis County Planning Commission is an example of a local administrative agency. It oversees land-use proposals and other long-range issues in St. Louis County, Missouri.

Question 38

Producers of government-approved drugs and chemicals cannot be sued by individuals who develop side effects years later.

Question 39

Negligence, in tort law, deals with behavior that causes intentional harm or injury.

Question 40

The Class Action Fairness Act is a first step toward setting limits on the amount of damages for which companies are liable should their products harm consumers.

Question 41

Trademarks generally belong to the owner forever, as long as they are properly registered and renewed every 10 years.

Question 42

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

Question 43

The holder of an exclusive copyright may charge a fee to anyone who wishes to use the copyrighted material.

Question 44

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

Question 45

If in the normal course of a job an employee creates a cartoon, the copyright belongs to the employer.

Question 46

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

Question 47

The Nike swoosh and the McDonald's golden arches are examples of corporate trademarks.

Question 48

A patent gives inventors exclusive rights to their inventions for 20 years.

Question 49

Unlike a patent, trademarks are not protected from infringement.

Question 50

Because it is no longer used in construction today, National Asbestos Manufacturing cannot be sued for damages today that are caused by asbestos that may still remain in some buildings.

Question 51

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

Question 52

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

Question 53

A copyright protects an individual's ownership rights to materials such as books, articles, photos, and cartoons, which they created.

Question 54

Recent legislation encourages the use of submarine patents.

Question 55

Congratulations! You've just finished composing a song that will be the next big hit. Your next step is to apply for a patent through the U.S. Patent & Trademark Office.

Question 56

Patent owners are prohibited from selling or licensing their patent rights to others.

Question 57

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

Question 58

A trademark gives exclusive legal protection to a name, symbol, or design that distinguishes the goods or services of one seller from those of competitors.

Question 59

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.

Question 60

Copyrights are filed with the Library of Congress and involve large amounts of paperwork.

Question 61

The Uniform Commercial Code establishes a standardized set of regulations for business transactions in all 50 states.

Question 62

Contract law is a set of laws that covers sales laws and other commercial laws.

Question 63

When a payee signs the back of a check the payee's signature is referred to as an endorsement.

Question 64

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

Question 65

Under contract law, duress means the presence of coercion through force or threat of force.

Question 66

A check is an example of a negotiable instrument.

Question 67

Batteries and tires sold with an express warranty provide the buyer with a guarantee regarding the life of the product.

Question 68

The warranty you receive in the box with a toaster is an express warranty.

Question 69

The warranty you receive in the box with an iPad is an implied warranty.

Question 70

When your younger brother signs the back of his paycheck and gives it to you in payment for money he owes you, he has endorsed the check, and you may deposit it in your checking account.

Question 71

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.

Question 72

Implied warranties are guarantees legally imposed on the seller.

Question 73

The offer of a 3-year or 36,000-mile warranty by a car dealer on a new vehicle is an example of an implied warranty.

Question 74

Negotiable instruments are forms of commercial paper.

Question 75

A contract is a legally enforceable agreement between two or more parties.

Question 76

Under contract law, consideration means something of value.

Question 77

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

Question 78

Regulations covering sales, checks, bank deposits, and bills of lading are contained in the Uniform Commercial Code.

Question 79

A full warranty limits the defects or mechanical problems that are covered in a product.

Question 80

A warranty guarantees that the product sold will be acceptable for the purpose for which the buyer intends to use it.