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

A) True
B) False

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

A) True
B) False

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The Federal Trade Commission Act of 1914 prohibits minors from entering into contracts.

A) True
B) False

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Your 15-year-old brother comes home with the great news that he has decided to buy his first car and has just agreed to give $10,000 to a complete stranger.He signed the contract and just needs to pay the stranger and pick up the car.Your dad is upset and calls the stranger to tell him your brother will not be buying the car.The stranger can:


A) sue your brother for breach of contract.
B) sue your dad for breach of contract.
C) sue your brother for specific performance.
D) do nothing.

E) B) and C)
F) A) and D)

Correct Answer

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

A) True
B) False

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If I agree to sell you my bike for $50 and we are both competent individuals we have a contract.

A) True
B) False

Correct Answer

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


A) precedent
B) statutory
C) common
D) tort

E) A) and D)
F) B) and C)

Correct Answer

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A check is an example of a negotiable instrument.

A) True
B) False

Correct Answer

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Requiring a retailer to carry Performance Tires in order to sell Performance Batteries is prohibited by the Robinson-Patman Act.

A) True
B) False

Correct Answer

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Several states now allow for competition in the electric power industry.Business customers,for example,can purchase their electric service from several different utility companies.This activity reflects a movement toward ________ in the utility industry.


A) re-regulation
B) monopoly pricing
C) deregulation
D) privatizing

E) A) and B)
F) A) and C)

Correct Answer

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__________ are the largest source of tax income received by the federal government.


A) Income taxes
B) Property taxes
C) Sales taxes
D) Excise taxes

E) B) and C)
F) A) and D)

Correct Answer

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

A) True
B) False

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

A) True
B) False

Correct Answer

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Which of the following holds a company liable for damages caused by a defective product even if the firm was unaware of the defect at the time of sale?


A) network responsibility
B) managerial liability
C) patent infringement
D) strict product liability

E) C) and D)
F) B) and D)

Correct Answer

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

A) True
B) False

Correct Answer

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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

E) C) and D)
F) All of the above

Correct Answer

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