Deck 21: Appendix: Working Within the Legal Environment

Question 1

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

Answer 1

True

Question 2

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

Answer 2

False

Question 3

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

Answer 3

False

Question 4

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

Question 5

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

Question 6

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

Question 7

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

Question 8

Statutory law refers to written legislation.

Question 9

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

Question 10

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

Question 11

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

Question 12

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

Question 13

Trial courts hear cases involving criminal and civil law.

Question 14

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

Question 15

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

Question 16

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

Question 17

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

Question 18

Business law is enforceable by the courts.

Question 19

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

Question 20

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

Question 21

Lawsuits against the tobacco industry are examples of tort law.

Question 22

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

Question 23

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

Question 24

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 25

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

Question 26

Tort law includes product liability cases.

Question 27

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

Question 28

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

Question 29

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 30

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

Question 31

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 32

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

Question 33

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

Question 34

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 35

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

Question 36

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

Question 37

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

Question 38

Public utility commissions are federal agencies.

Question 39

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

Question 40

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 41

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

Question 42

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

Question 43

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 44

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

Question 45

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

Question 46

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

Question 47

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

Question 48

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

Question 49

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

Question 50

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

Question 51

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

Question 52

Recent legislation encourages the use of submarine patents.

Question 53

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 54

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 55

Unlike a patent, trademarks are not protected from infringement.

Question 56

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

Question 57

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

Question 58

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

Question 59

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 60

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

Question 61

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

Question 62

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

Question 63

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

Question 64

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

Question 65

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

Question 66

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 67

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

Question 68

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 69

Implied warranties are guarantees legally imposed on the seller.

Question 70

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

Question 71

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

Question 72

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

Question 73

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

Question 74

Under contract law, consideration means something of value.

Question 75

Negotiable instruments are forms of commercial paper.

Question 76

A check is an example of a negotiable instrument.

Question 77

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

Question 78

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 79

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

Question 80

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