Deck 22: Extension: Working Within the Legal Environment

Question 1

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

Answer 1

True

Question 2

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

Answer 2

False

Question 3

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

Answer 3

True

Question 4

Business law is enforceable by the courts.

Question 5

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

Question 6

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

Question 7

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

Question 8

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

Question 9

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

Question 10

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

Question 11

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

Question 12

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

Question 13

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

Question 14

Trial courts hear cases involving criminal and civil law.

Question 15

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

Question 16

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

Question 17

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

Question 18

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

Question 19

Statutory law refers to written legislation.

Question 20

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

Question 21

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 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

Companies that produced lead-based paint 30 years ago are still subject to the strict product liability provisions of federal tort law.

Question 24

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

Question 25

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

Question 26

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

Question 27

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 28

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

Question 29

The recent lawsuits against the tobacco industry are examples of tort law.

Question 30

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

Question 31

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

Question 32

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

Question 33

Unintentional behavior that causes harm or injury is an example of a tort.

Question 34

Tort law includes product liability cases.

Question 35

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

Question 36

Public utility commissions are federal agencies.

Question 37

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 38

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

Question 39

Big Buxx National Bank has decided to change its advertising campaign. In the new campaign it will announce that the bank has the lowest bank fees in the country even though it has not done research to discover whether this is, in fact, true. Business law is the framework within which a competitor could take Big Buxx to court in the event its claims are not true.

Question 40

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

Question 41

John Fielder is a renowned photographer of the Colorado Rocky Mountain region. Each of his works is copyrighted. This means that anyone can use his photos so long as they give Mr. Fielder notice.

Question 42

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

Question 43

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

Question 44

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

Question 45

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

Question 46

The Nike Swoosh and the McDonald's Golden Arches are examples of corporate trademarks.

Question 47

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

Question 48

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

Question 49

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

Question 50

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

Question 51

Unlike a patent, trademarks are not protected from infringement.

Question 52

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

Question 53

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

Question 54

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

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

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

Question 57

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 58

Recent legislation encourages the use of submarine patents.

Question 59

With today's widespread use of water-based house paint, no paint manufacturer can be sued for damages today that are caused by lead-based paint that may still remain on the surface of some house and apartment walls.

Question 60

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

Question 61

The warranty you receive in the box with a Bluray player is an implied warranty.

Question 62

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

Question 63

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

Question 64

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

Question 65

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

Question 66

Negotiable instruments are forms of commercial paper.

Question 67

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

Question 68

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

Question 69

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

Question 70

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

Question 71

Generally a warranty is an important part of a product.

Question 72

Implied warranties are guarantees legally imposed on the seller.

Question 73

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

Question 74

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 75

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

Question 76

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 77

When Sears agrees to replace or repair your defective treadmill at no charge to you, Sears is fulfilling a full warranty on your treadmill.

Question 78

A check is an example of a negotiable instrument.

Question 79

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

Question 80

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