Question 1

Both the airline and telecommunications industries have been deregulated.

Accepted Answer

Both the airline and telecommunications industries have been deregulated.

Question 2

Deregulation has always benefited consumers.

Accepted Answer

Deregulation can have both positive and negative effects on consumers. While it can lead to increased competition, lower prices, and improved efficiency, it can also lead to reduced consumer protections and safety standards, as well as concentration of market power in the hands of a few dominant companies.

Question 3

The purpose of governmental deregulation is to eliminate laws that seem to hinder competition.

Accepted Answer

Governmental deregulation is the removal or reduction of government regulations, rules and laws in order to stimulate economic growth by removing obstacles to businesses and competition. This is often done in order to increase competition and make markets more efficient. Eliminating laws that hinder competition is a key goal of governmental deregulation.

Question 4

The number of Americans filing for bankruptcy has decreased as a result of the Bankruptcy Reform Act.

Accepted Answer

There has been a significant increase in the number of Americans filling for bankruptcy. Bankruptcy attorneys say the increase in filings is due to a lessening of the stigma of bankruptcy, the changing economy, and an increase in the understanding of bankruptcy.

Question 5

The regulation of marriages and payments for personal injuries is covered by
A) civil law.
B) criminal law.
C) appellate law.
D) legislative law.

Accepted Answer

Civil law covers disputes between individuals or organizations, including regulations for marriages and personal injury compensation. Criminal law, on the other hand, deals with crimes and their punishments, while appellate law involves appeals of lower court decisions. Legislative law refers to the creation of laws by legislatures.

Question 6

Chapter 13 bankruptcy permits individuals and small-business owners to repay creditors over a period of three to five years.

Accepted Answer

Chapter 13 bankruptcy does indeed allow individuals and small-business owners to create a repayment plan over a period of three to five years. This allows them to repay their debts while retaining their assets, unlike in Chapter 7 bankruptcy where assets may be sold to pay off creditors.

Question 7

________ law establishes punishments, and regulates the investigation of people accused of committing crimes.
A) Civil law
B) Criminal law
C) Appellate law
D) Business law

Accepted Answer

Criminal law is the branch of law that deals with crimes, their investigation, prosecution, and punishment. It establishes punishments for crimes such as theft, murder, robbery, and assault. Under criminal law, the state investigates and prosecutes individuals for committing criminal conduct.

Question 8

A company has to be insolvent before it can file for Chapter 11 bankruptcy.

Accepted Answer

A company does not have to be insolvent before it can file for Chapter 11 bankruptcy. However, Chapter 11 is typically used by companies that are struggling financially and need to reorganize their debts in order to continue operations.

Question 9

The body of law created by court decisions rendered by judges is called ________ law.
A) precedent
B) statutory
C) common
D) tort

Accepted Answer

Common law is the body of law created by prior court decisions, also known as case law or judge-made law. Precedent refers to previous court decisions that serve as a guide for future cases, but it is a component of common law rather than the entirety of it. Statutory law, on the other hand, is created by legislative bodies such as Congress or state legislatures. Tort law is a type of civil law that deals with wrongful acts causing harm or injury.

Question 10

While the government regulates business activities, businesses would prefer to set their own standards of behavior. Which of the following is the most likely reason the government has intervened?
A) The relationships between businesses and other parties are more complex than ever.
B) The public perceives U.S. businesses as moving too slowly in implementing acceptable standards of behavior.
C) The judiciary branch of the government is more aware of the needs and desires of society.
D) There has been an increase in the number of lawyers.

Accepted Answer

To hasten the process of business responsibility, the government has expanded its control and enforcement procedures.

Question 11

When Bryan and Lizzie got married they wanted to travel, buy nice houses and cars, and enjoy the good life. They used credit cards to finance their lifestyle, believing they would be fine as long as they could make the minimum payments. One day they discovered that because of rising interest rates, even the minimum payments were out of reach. They decided to declare Chapter 13 bankruptcy. Under this plan, they will have to pay their creditors back over 3 to 5 years.

Accepted Answer

Chapter 13 bankruptcy permits individuals to pay back creditors over a period of three to five years. The debtor files a proposed plan for paying off debts to the court. If the plan is approved, the debtor pays a court-appointed trustee in monthly installments as agreed on in the repayment plan. The trustee then pays each creditor.

Question 12

________ refers to rules, statutes, codes, and regulations established to provide a legal framework within which business may be conducted.
A) Common law
B) Statutory law
C) Bankruptcy law
D) Business law

Accepted Answer

Business law encompasses rules, statutes, codes, and regulations that provide a legal framework for conducting business.

Question 13

Filing for bankruptcy under the Chapter 11 provisions allows a company to reorganize and continue operations while paying only a proportion of its debts.

Accepted Answer

Chapter 11 bankruptcy allows a company to reorganize its operations and pay a portion of its debts while continuing to operate.

Question 14

When the airline industry was deregulated, consumers benefited because airlines established new routes and charged lower fares.

Accepted Answer

At one time, the government restricted airlines with regard to where they could land and fly. When the industry was deregulated, airlines began competing for different routes and charging lower prices. Consumers benefited from the deregulation, but established airlines were challenged to be more competitive.

Question 15

The branch of the government responsible for overseeing the legal system is the
A) judiciary.
B) executive.
C) legislative.
D) administrative.

Accepted Answer

The judicial branch is responsible for interpreting the laws of the country and overseeing the legal system. They ensure that the laws are being applied fairly and equitably. The executive branch is responsible for enforcing the laws and the legislative branch is responsible for creating laws. The administrative branch is responsible for carrying out the day-to-day operations of the government.

Question 16

Business and government do not need to work together to create a competitive environment that is fair and open since global competition is increasing.

Accepted Answer

While global competition is increasing, working together between business and government is necessary to create a competitive environment that is fair and open. Government policies and regulations help ensure fair competition and prevent monopolies, while businesses bring innovation and investment into the economy. It is important for both entities to work together to create a level playing field for all participants in the market.

Question 17

Chapter 13 proceedings are more complicated than Chapter 7 bankruptcy proceedings.

Accepted Answer

The answer of Chapter 13 proceedings are more complicated than...

Question 18

Which of the following can review and, when necessary, overturn decisions made at the trial court level?
A) administrative agencies
B) appellate courts
C) arbitration judges
D) statutory agencies

Accepted Answer

Appellate courts have the authority to review decisions made at the trial court level and can overturn them if necessary. Administrative agencies and statutory agencies are non-judicial bodies that have their own appeal processes, while arbitration judges render binding decisions that cannot be appealed to a higher court.

Question 19

It appears that some regulation of business is necessary to ensure fair and honest dealings with the public.

Accepted Answer

Without regulation, businesses may engage in unethical or fraudulent practices that harm consumers, competitors, or the environment. Regulation can set standards for product safety, labor conditions, pricing, advertising, and other aspects of business behavior. It can also create a level playing field for all market participants and prevent abuses of market power. However, excessive or poorly designed regulation can also have negative effects on innovation, competition, and economic growth. Therefore, the challenge is to strike the right balance between regulation and market forces, taking into account the specific context and objectives of each industry and market.

Question 20

Common law relies on decisions made by judges in previous cases. These earlier decisions are called
A) administrative guidelines.
B) precedents.
C) arbitration rules.
D) statutory models.

Accepted Answer

Precedents are previous decisions made by judges in similar cases that serve as a guide for future cases. Common law is based on these precedents and the decisions made by judges in past cases. Administrative guidelines, arbitration rules, and statutory models are all different legal concepts that do not necessarily rely on common law or precedents.

Quiz 21: Appendix: Working Within the Legal Environment

Both the airline and telecommunications industries have been deregulated.

Deregulation has always benefited consumers.

The purpose of governmental deregulation is to eliminate laws that seem to hinder competition.

The number of Americans filing for bankruptcy has decreased as a result of the Bankruptcy Reform Act.

The regulation of marriages and payments for personal injuries is covered by

Chapter 13 bankruptcy permits individuals and small-business owners to repay creditors over a period of three to five years.

________ law establishes punishments, and regulates the investigation of people accused of committing crimes.

A company has to be insolvent before it can file for Chapter 11 bankruptcy.

The body of law created by court decisions rendered by judges is called ________ law.

While the government regulates business activities, businesses would prefer to set their own standards of behavior. Which of the following is the most likely reason the government has intervened?

________ refers to rules, statutes, codes, and regulations established to provide a legal framework within which business may be conducted.

Filing for bankruptcy under the Chapter 11 provisions allows a company to reorganize and continue operations while paying only a proportion of its debts.

When the airline industry was deregulated, consumers benefited because airlines established new routes and charged lower fares.

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

Business and government do not need to work together to create a competitive environment that is fair and open since global competition is increasing.

Chapter 13 proceedings are more complicated than Chapter 7 bankruptcy proceedings.

Which of the following can review and, when necessary, overturn decisions made at the trial court level?

It appears that some regulation of business is necessary to ensure fair and honest dealings with the public.

Common law relies on decisions made by judges in previous cases. These earlier decisions are called