Deck 17: Business Law

Question 1

________ form the basis for much personal and business interaction,including when a company hires another company or individual to do work for them or when property is bought and sold.

A) Contracts
B) Precedents
C) Principles
D) Codes
E) Courts

Answer 1

A

Question 2

Statutory law is ________.

A) the written text of the U.S. Constitution
B) written law determined by the legislative branch of the government
C) the written text of the Bill of Rights
D) unwritten but applied law
E) written by judges who try important cases

Answer 2

B

Question 3

A regulation passed by the Food and Drug Administration strengthening the rules for drug safety and requiring manufacturers to prove their drugs' effectiveness is an example of ________ law.

A) constitutional
B) statutory
C) administrative
D) case
E) common

Answer 3

C

Question 4

________ is most often associated with manufacturing defects,design or marketing defects,and a failure to warn.

A) Intentional tort
B) Negligence
C) Product liability
D) Uniform commercial code
E) Patents

Question 5

Which of the following is an example of the acceptance of an offer?

A) a handshake
B) a price
C) an advertisement
D) a trade
E) capacity

Question 6

All of the following are true of constitutional law EXCEPT

A) it is the written text of the U.S. Constitution
B) it is the foundation of U.S. law
C) it is the written text of the Bill of Rights
D) it is written law determined by the legislative branch of the government
E) all other laws fall subordinate to it

Question 7

Which of the following is NOT one of the elements of a contract that must be in place for it to be valid?

A) an offer must be made
B) the parties must understand and agree on the terms
C) the terms must be formally drafted
D) consideration must be given
E) the offer must be accepted

Question 8

Which of the following is NOT a type of tort?

A) intentional tort
B) negligence
C) strict liability
D) absolute liability
E) tort reform

Question 9

Regulatory bodies like the SEC and the FTC have the power to pass ________ law.

A) constitutional
B) statutory
C) administrative
D) common
E) case

Question 10

In terms of contract law,consideration means ________.

A) mental capacity
B) something of real value
C) minor status
D) duress
E) acceptance

Question 11

Unlike trademarks and patents,trade secrets ________.

A) are not protected under federal statutes
B) are not protected under state laws
C) are protected only when the secret is disclosed
D) cannot be processes
E) must be physical devices

Question 12

The United States is a federalist system,meaning ________.

A) the national government has complete authority
B) the fifty states have no autonomy
C) only the U.S. government is divided into executive, legislative, and judicial branches
D) states don't have written constitutions
E) there is government authority at both the national and state levels

Question 13

The Nike swoosh,McDonald's golden arches,and Apple's apple are all examples of ________.

A) patents
B) trademarks
C) copyrights
D) trade secrets
E) digital rights

Question 14

Which of the following does NOT apply to intellectual property law?

A) patents
B) trademarks
C) copyrights
D) trade secrets
E) negotiable instruments

Question 15

A customer was dissatisfied after an experience at a hair salon.She posted extensively about her dissatisfaction on the Internet,making derogatory remarks about the stylist's abilities and the hygiene at the salon.If the hair stylist wanted to sue the customer,under which law could the stylist proceed?

A) undue influence
B) breach of contract
C) product liability
D) negligence
E) intentional tort

Question 16

In instances when a contract is not fulfilled,________ of contract is said to occur.

A) fraud
B) duress
C) undue influence
D) breach
E) incapacity

Question 17

Which of the following is NOT one of the sources of law?

A) executive
B) constitutional
C) statutory
D) administrative
E) case

Question 18

Which of the following people would most likely be in favor of tort reform?

A) a parent whose child has elevated lead levels due from a toy made in China
B) a lawyer who just won a multimillion-dollar case on behalf of customers injured by defective curling irons
C) an advocate who is concerned about the ability of injured parties to be fairly compensated for their damages
D) an analyst who feels that the cost of litigation is driving up the cost of insurance
E) a consumer who wants to have easy access to file a lawsuit should he be injured by a faulty product

Question 19

Which of the following is NOT covered under copyright law?

A) a song
B) a poem
C) a painting
D) a logo
E) a play

Question 20

Common law ________.

A) is the highest law in the land
B) is the written text of the Bill of Rights
C) falls under the jurisdiction of the President
D) is created by the judicial branch
E) is also known as statutory law

Question 21

Traditional copyright law effectively protects books,music,film,art in the digital age.

Question 22

Domenica had a tree on her property that blocked Mark's view of the lake across the street from his house.Mark got more and more annoyed by the tree's presence until the day he cut down the tree when Domenica was at work.Domenica is able to sue Mark for intentional tort.

Question 23

Christian is filing for Chapter 13 bankruptcy,so he must sell his home and car and use the proceeds from this to pay off his debts on a 3-5 year repayment plan.

Question 24

Which of the following companies was prevented by the FTC from pushing an unwanted associated product onto a dealer?

A) Sears Roebuck Co.
B) Office Depot
C) Tower Records
D) Microsoft
E) Nike

Question 25

Truth-in-advertising rules include laws that mandate that food products have specific nutritional and product information.

Question 26

In 2010,U.S.businesses spent ________ on advertising.

A) $279 million
B) $27.9 billion
C) $279 billion
D) $2.79 trillion
E) $27.9 trillion

Question 27

SnowDonuts,a maker of snow tubes,owes many thousands of dollars to suppliers of the plastic from which the tubes are made.The suppliers have asked the courts to force SnowDonuts to repay.But SnowDonuts just got its three biggest orders ever.What would the courts likely do?

A) have SnowDonuts file voluntary Chapter 7 bankruptcy: liquidation
B) have SnowDonuts file involuntary Chapter 7 bankruptcy: liquidation
C) have SnowDonuts file voluntary Chapter 11 bankruptcy: business reorganization
D) have SnowDonuts file involuntary Chapter 11 bankruptcy: business reorganization
E) have SnowDonuts file involuntary Chapter 13 bankruptcy: wage earner's reorganization

Question 28

Chapter 11 bankruptcy ________.

A) requires that the business ceases operation
B) allows a business to pay its creditors over time
C) is the most common form of bankrupty for individuals
D) demands that creditors be paid within 3-5 years
E) can only be filed voluntarily

Question 29

Only a firm's administrative personnel are subject to administrative law.

Question 30

If McDonald's and Burger King were planning a merger,the Federal Trade Commission (FTC)would monitor this activity.

Question 31

What does "UCC " stand for?

A) Uniform Commercial Code
B) Unintentional Commerce Claim
C) Unfair Contract Consideration
D) Undue Copyright Challenge
E) Union Corporation Credit

Question 32

The legal framework in which business is conducted is called business law.

Question 33

Truth-in-advertising rules do all of the following EXCEPT

A) ensure that advertisements are nondeceptive
B) ensure that the advertisements are not unfair
C) ensure that there is sufficient evidence to support claims made in advertisements
D) ensure that cigarette packages contain warning labels
E) ensure that advertisements do not cause unavoidable consumer injury that is not outweighed by the benefit

Question 34

A copyright is any word,name,symbol,or device (or any combination of these)that is used to identify and distinguish a good.

Question 35

Recently the Environmental Protection Agency has been focusing its attention on modifying the United States energy policy in response to global warming concerns.

Question 36

Why did the FTC block the merger of Staples and Office Depot?

A) The merger would have resulted in new efficiencies by combining operations.
B) The merger would have increased the number of competing stores in some parts of the country.
C) The merger would have allowed for higher pricing, costing consumers millions of dollars.
D) The merger would have resulted in a decrease in the variety and quality of products offered to consumers.
E) The merger would have made it easier for other competitors to enter the market.

Question 37

What government body was established in 1970 to "protect human health and the environment?"

A) FTC
B) EPA
C) UCC
D) DMCA
E) OSHA

Question 38

The Fair Labor Standards Act regulates standards for wages and overtime pay.

Question 39

Which of the following regulates the fiduciary responsibilities of unions to its members?

A) Fair Labor Standards Act
B) Labor-Management Reporting and Disclosure Act
C) Workers Compensation
D) Employee Retirement Income Security Act
E) Occupational Safety and Health Act

Question 40

What was the first American antitrust law?

A) the UCC
B) the Federal Trade Commission Act
C) the Clayton Antitrust Act
D) the Sherman Act
E) the Bureau of Competition Act

Question 41

Can anyone enter into a business contract?

Question 42

How are trademarks protected?

Question 43

What is the FTC's interest in mergers?

Question 44

Are a tort and a breach of contract the same thing? Explain.

Question 45

Why should bankruptcy only be used as a last resort?