Question 1

When the dispute is put to a neutral third party who is not a judge it is called as

Accepted Answer

Mediation refers to the process of resolving a dispute through the assistance of a neutral third party, who helps the parties involved come to a mutually acceptable agreement. In contrast, arbitration involves the submission of the dispute to a third-party arbitrator who renders a binding decision. Litigation involves the parties presenting their case before a judge in a court of law. Piercing the veil refers to a legal doctrine that allows creditors or claimants to hold shareholders or owners of a company personally liable for the debts and obligations of the company, in certain circumstances.

Question 2

Which among the following dispute resolution methods is generally much faster to complete and the least expensive?

Accepted Answer

Mediation is generally faster and less expensive than litigation and arbitration, as it involves a neutral third party helping the disputing parties reach a voluntary agreement.

Question 3

In which of the following dispute resolution methods is the decision nonbinding on the parties involved?

Accepted Answer

Mediation is the dispute resolution method in which parties involved do not have to comply with the decision made. Unlike arbitration, which is binding, the mediator works with the parties involved to help them come up with a resolution that is agreeable to both parties, but neither party is required to follow the mediator’s recommendations.

Question 4

In business to business,contracts are often transactions involving _____ which link suppliers of raw materials and components with wholesalers and retailers,often using dedicated lines or satellites.

Accepted Answer

The best choice for the given question is electronic data interchange (EDI). EDI is commonly used in business-to-business transactions that link suppliers, wholesalers, and retailers. EDI is a computer-to-computer exchange of business documents using a standardized format, allowing trading partners to exchange documents electronically. It is more efficient, reliable, and cost-effective than traditional paper-based methods, making it a popular choice for B2B transactions.

Question 5

A(n)_____ is a contract by which a new party agrees to perform a duty that one of the original parties to a contract was already legally obligated to perform.

Accepted Answer

A subcontract is a contract by which a new party agrees to perform a duty that one of the original parties to a contract was already legally obligated to perform. The original party is still responsible for fulfilling the terms of the original contract, but they may delegate certain tasks to the subcontractor.

Question 6

Which of the following dispute resolution methods favors those with more money for legal help?

Accepted Answer

Litigation in regular courts generally favors those with more money for legal help, as they can hire high-priced lawyers and manage a longer legal battle with ease. This puts the other party at a disadvantage, who may not have sufficient financial resources to hire top lawyers and handle extended litigation. In such cases, the power dynamic is skewed towards the party with more money to hire legal help.

Question 7

Exclusive rights given to the creator of a literary or artistic work to make use of that work is called a

Accepted Answer

Copyright law grants the creator of an original artistic or literary work exclusive rights to reproduce, distribute, and display the work.

Question 8

Which of these refer to a part of a contract in which a party to the contract states that he or she will not be responsible for certain actions?

Accepted Answer

An exculpatory clause is a part of a contract in which a party states that they will not be held responsible for certain actions or circumstances. Noncompete clauses refer to restrictions on competition, hold harmless clauses typically state that one party will not hold the other party liable for damages, and a waiver is a voluntary relinquishment of a known right or privilege.

Question 9

Among which of the following dispute resolution methods do both parties represent themselves?

Accepted Answer

In small-claims court, both parties represent themselves.

Question 10

Identify this federal law that describes the steps publicly traded businesses must take to protect and provide their key financial information.

Accepted Answer

The Sarbanes-Oxley Act was passed in 2002 and is also known as the Public Company Accounting Reform and Investor Protection Act. It requires publicly traded companies to establish internal controls and procedures for financial reporting and disclosure, including protecting key financial information from hacking or other unauthorized access.

Question 11

Hold harmless agreements is otherwise known as

Accepted Answer

The answer of Hold harmless agreements is otherwise known as
...

Question 12

According to the IRS,to be an independent contractor

Accepted Answer

The answer of According to the IRS,to be an independent...

Question 13

Distinctive words,slogans,or images,that identify a product and its origin is called a

Accepted Answer

A distinctive sign, logo, name, or symbol that identifies a product and its origin is called a trademark. Trademarks distinguish the products or services of one business from those of another and help to build brand recognition and loyalty. Trade secrets are confidential information that provides a competitive advantage and is kept secret. Copyrights protect creative works such as books, music, films, and software. Patents protect inventions and give the inventor exclusive rights to make, use, and sell the invention for a period of time.

Question 14

A formal dispute resolution method that operates using the court system,typically with a lawyer representing each party is called which of these?

Accepted Answer

Litigation involves resolving disputes through the court system and typically involves lawyers representing each party. Arbitration and mediation may also have the involvement of neutral third parties, but they are not necessarily part of the court system. Piercing the veil is a legal concept related to corporate law and does not refer to a dispute resolution method.

Question 15

Which of these refers to a dispute resolution process held instead of court cases in which both sides present their case to a legal professional?

Accepted Answer

Arbitration is a dispute resolution process in which both sides present their case to a legal professional, who makes a final decision that is legally binding on both parties. Litigation refers to the process of taking a case through court, while mediation is a process in which a neutral third party helps the disputing parties come to a mutually acceptable solution. "Piercing the veil" refers to a legal concept in which the corporate veil of a company is lifted in order to hold individual shareholders or directors liable for the actions of the company.

Question 16

Differences among state laws necessitates the need for

Accepted Answer

Interstate contracts are necessary to address differences in state laws when conducting business across state lines. Specialty contracts may be used in certain industries, but they are not specifically related to addressing state law differences. Hold harmless agreements and field contracts do not directly address state law differences.

Question 17

Which of these refer to a part of a contract in which a person agrees not to open a certain type of business or seek employment doing certain things in a particular area for a period of time?

Accepted Answer

A noncompete clause is a contractual agreement in which an individual agrees not to compete with a company for a specified period of time and within a particular geographical area. It prevents the individual from opening a similar business or seeking employment with a competitor in the same industry or field.

Question 18

A grant by the U.S.government to an inventor for an idea that is new,useful,and nonobvious,giving the inventor the exclusive right to make,use,or sell his or her idea is called a

Accepted Answer

A patent is a grant by the U.S. government to an inventor for an idea that is new, useful, and nonobvious, giving the inventor the exclusive right to make, use, or sell his or her idea. A trade secret is confidential information that provides a competitive advantage and is kept secret. Copyright and trademark protection are different forms of intellectual property protection.

Question 19

Property coming from some sort of original thought such as trademarks and copyrights are called

Accepted Answer

Property coming from an original thought such as trademarks and copyrights fall under the category of intellectual property. Therefore, choice D is the correct answer. Options A, B, and C are not applicable in this context.

Question 20

Identify the patent that covers the look of a product and those parts that are essential or a part of the design.

Accepted Answer

Design patents cover the unique and ornamental appearance of a product or object, including its visual aesthetics and specific design elements. This includes both the overall look of the product as well as any individual parts that are essential or notable aspects of the design.

Quiz 18: Legal Issues: Recognizing Your Small Business Needs