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Entrepreneurship Law explores the legal frameworks and considerations essential for starting, operating, and growing a new business. The course examines foundational legal topics such as entity formation, intellectual property protection, contract law, financing regulations, employment law, and compliance with local, state, and federal regulations. Students will learn how to navigate potential legal challenges faced by entrepreneurs, understand the implications of different business structures, protect innovative ideas, and anticipate risks in business transactions. Through case studies and practical exercises, the course equips aspiring entrepreneurs and business professionals with the legal knowledge necessary to make informed decisions and minimize liability in the evolving landscape of entrepreneurship.
Recommended Textbook
Essentials of Business Law 8th Edition by Anthony Liuzzo
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Q1) The enforcement of moral obligations results from:
A) the effect on a person's conscience.
B) actions by state courts.
C) actions by federal courts.
D) peer pressure.
Answer: A
Q2) A law that is passed by a local government,such as a city council,is often called a(n):
A) ratio decidendi.
B) obiter dicta.
C) ordinance.
D) stare decisis.
Answer: C
Q3) The literal translation of "stare decisis" would mean:
A) "during the pendency of a proceeding."
B) "to postpone hearing without a date."
C) "to send summons."
D) "to stand on decided cases."
Answer: D
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Q1) A distinction between law and ethics is that legal mandates are usually more:
A) flexible.
B) precise.
C) obscure.
D) flawed.
Answer: B
Q2) Some firms or industries have established a code of ethics,sometimes called a "credo." The objective of a code of ethics is to:
A) specify the principles of ethical behavior expected of its employees.
B) set down the principles to be followed in dealing with government agencies.
C) establish guidelines in dealing with suppliers.
D) establish rules for management to follow in dealing with employee grievances.
Answer: A
Q3) An individual's values are significantly influenced by those held in the groups to which he or she belongs.
A)True
B)False
Answer: True
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Q1) Misdemeanor is a less serious offense than a:
A) felony.
B) civil wrong.
C) tort.
D) white-collar crime.
Answer: A
Q2) Crimes are classified into three groups according to the seriousness of the offense.They are:
A) treason, felony and larceny.
B) treason, misdemeanor and larceny.
C) treason, felony and misdemeanor.
D) misdemeanor, felony and larceny.
Answer: C
Q3) The law assures each person certain rights and assigns each person certain duties.
A)True
B)False
Answer: True
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Q1) A term that is used in cases involving the negligence of professionals is known as:
A) false imprisonment.
B) vis major.
C) misfeasance.
D) malpractice.
Q2) If actions cause harm by an insinuation that holds someone up to hatred,ridicule,or contempt,or lowers his or her esteem,respect,or social position,the person who made the insinuation can be charged with the tort of:
A) libel.
B) slander.
C) defamation.
D) false imprisonment.
Q3) Describe the term "negligence" under the law of torts.
Q4) The common defenses to charges of defamation are:
A) insanity and privilege.
B) truth and falsehood.
C) truth and privilege.
D) privilege and falsehood.
Q5) Explain the kinds of actions that can be slanderous.
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Q1) Each constitutional amendment must be proposed by a:
A) one-third vote of Congress.
B) one-fourth vote of Congress.
C) two-thirds vote of Congress.
D) three-fourths vote of Congress.
Q2) Express powers are those that are specifically stated in a statute.
A)True
B)False
Q3) The _______________test is a standard that measures whether a particular statute is substantially related to an important government objective:
A) peer pressure test.
B) rational basis test.
C) intermediate scrutiny test.
D) strict scrutiny test.
Q4) Freedom of Speech is covered under which Amendment:
A) First Amendment.
B) Second Amendment.
C) Fourth Amendment.
D) Sixteenth Amendment.
Q5) What power did the Sixteenth Amendment grant the federal government?
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Q1) The executive branch of government sees that all legislation is:
A) approved.
B) enacted.
C) enforced.
D) dismissed.
Q2) The House of Representatives and the Senate are:
A) the houses of Congress.
B) not the houses of Congress.
C) the houses of state legislature.
D) the houses of city councils.
Q3) Interpretation and determination of violations of the law is the function of:
A) the legislative branch of a government.
B) the judicial branch of a government.
C) the executive branch of a government.
D) none of the three branches of government.
Q4) The executive head at the state level is the:
A) mayor.
B) president.
C) senator.
D) governor.
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Q1) An indication made by the offeree that he or she agrees to be bound by the terms of the offer is known as:
A) an enforceable offer.
B) a mutual agreement.
C) free consent.
D) acceptance.
Q2) All but one of the following elements is required of an enforceable contract.The exception is:
A) offer and acceptance.
B) mutual agreement.
C) consideration.
D) malafide intention.
Q3) The Uniform Commercial Code (UCC)defines a contract under the provision:
A) UCC 1-201(10).
B) UCC 1-201(11).
C) UCC 1-201(12).
D) UCC 1-201(13).
Q4) A written contract can be a handwritten note.
A)True
B)False

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Q1) The general rule regarding the effective date and time an acceptance becomes binding is:
A) when the parties intend.
B) three days after receipt of the acceptance.
C) three days after acceptance is sent.
D) upon receipt by the offeree.
Q2) Offers are terminated for all of the following reasons EXCEPT: A) lapse of time.
B) revocation.
C) rejection.
D) silence.
Q3) A purchase order issued by one firm to another is generally considered a(n): A) offer.
B) acceptance.
C) first step in negotiation.
D) request for proposal.
Q4) Silence does not indicate assent to an offer,even if both parties agree beforehand that this is to be the means of acceptance.
A)True
B)False
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Q1) Randolf,a wealthy connoisseur of arts,was invited to an art exhibition.He became very interested in one of the showcased art exhibits,and approached the manager to buy the piece.While he was interested in the painting of the catalogue number 1201,the art gallery's manager mistakenly assumed he was interested in another piece.When it was the time to complete the transaction,the manager realized that he had instead sold and delivered the wrong painting,and immediately clarified this with Randolf.In this instance,the contract can be canceled by either party for:
A) mutual mistake.
B) unilateral mistake.
C) negligence.
D) misrepresentation.
Q2) Checkroom and luggage receipts are examples of:
A) simple contracts.
B) contracts of adhesion.
C) unconscionable contracts.
D) expressed contracts.
Q3) What is an "unconscionable contract," and what are the court's options when handling one?
Q4) Explain what amounts to a "contract of adhesion."
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Q1) A contract will not be enforced if it:
A) is impossible to fulfill.
B) is inconvenient to fulfill.
C) is difficult to fulfill.
D) poses unforeseen expenses.
Q2) A barren promise is one that involves a promise:
A) to do something one is already required to do.
B) to perform an illegal act.
C) to perform an act that involves an unreasonable period of time.
D) that cannot be performed.
Q3) The promises exchanged by the parties to a contract,either to give up something of value they have a legal right to keep,such as money or property; to do something they are not otherwise legally required to do,such as performing a service; or to refrain from an action is known as:
A) competence of parties.
B) offer and acceptance.
C) mutual agreement.
D) consideration.
Q4) Define and explain the term "general release."
Q5) Describe agreements supported by moral consideration.
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Q1) A person who has not yet reached the age of majority is considered a:
A) minor.
B) contractor.
C) competent party.
D) participant.
Q2) Contracts with people who have been declared insane by the courts are void even if the sane people who contracted with them do not know that they had been declared insane by the courts.
A)True
B)False
Q3) With regard to minors' contracts,silence or inaction is the basis for a voidable contract becoming a valid and enforceable contract through:
A) justification.
B) clarification.
C) ratification.
D) ramification.
Q4) In a contract between a minor and an adult,the minor has the privilege of disaffirmance.Are there circumstances under which the minor may not cancel the contract?
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Q1) Contracts involving the payment of a note,the delivery of merchandise,and the repair of equipment are examples of:
A) gambling and wagering agreements.
B) usurious agreements.
C) unlicensed transactions.
D) agreements made on Sundays or legal holidays.
Q2) If the purpose of the statute is regulatory and enforcement of the licensing requirements is clearly in the public interest,then the unlicensed transaction becomes:
A) valid.
B) illegal.
C) voidable.
D) ratified.
Q3) The ______________ forbids certain agreements that tend to unreasonably inhibit competition,fix prices,allocate territories,or limit production.
A) Clean Water Act
B) Sherman Antitrust Act
C) Educate America Act
D) Americans with Disabilities Act
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Q1) The Statute of Frauds applies only to:
A) administrative contracts.
B) executory contracts.
C) business contracts.
D) notarized contracts.
Q2) A valid agreement should not be handwritten even if it is legible.
A)True
B)False
Q3) To be enforceable,agreements in contemplation of marriage:
A) must be in writing and signed after the marriage.
B) must be in writing and signed before the marriage.
C) can be oral if the parties are both over the age of 21 years.
D) should be in the presence of witnesses.
Q4) To be enforceable,a contract must be:
A) court-ordered.
B) stamped.
C) in writing.
D) notarized.
Q5) How is a sale completed if it is made by telephone?
Q6) Are prenuptial agreements enforceable? Explain why or why not.
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Q1) The person who transfers his or her rights is known as the assignor; the third party to whom the rights are transferred is known as the assignee.
A)True
B)False
Q2) Name the three kinds of contracts that cannot be assigned.
Q3) Rights or duties under a contract may be assigned by a court of law when a contracting party:
A) earns profits.
B) incurs losses.
C) opens new business.
D) dies or becomes bankrupt.
Q4) A third-party beneficiary to a contract has no legal right to the benefits resulting from the contract.
A)True
B)False
Q5) Personal service contracts are automatically assigned at the time of death.
A)True
B)False
Q6) State the differences between a novation and an assignment.
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Q1) A deliberate change of an important element in a written contract that affects the obligations of the parties is known as a material alteration.
A)True
B)False
Q2) When a party breaches a contract,the injured party has the duty to mitigate the amount of damages.
A)True
B)False
Q3) All of the following requirements must be met for a tender of money or performance to be valid EXCEPT:
A) the tender must be made as specified in the contract.
B) the mention of money in a contract implies payment by check.
C) when tender of payment is made, it must be for the exact amount.
D) if the contract calls for the delivery of specific goods, only the tender of these particular goods will satisfy the contract.
Q4) Provide examples of contracts terminated by breach and impossibility of performance.
Q5) Provide an example of a contract terminated by performance.
Q6) Explain the liquidated damages clause.
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Q1) Title is a tangible property.
A)True
B)False
Q2) When the owner of goods entrusts property to a person who sells the same type of goods and that person sells the property to an innocent third party,the owner cannot be estopped from recovering the goods from the third party.
A)True
B)False
Q3) A sale in which contract provisions that specify conditions that must be met by one of the parties is called a(n):
A) conditional sale.
B) substantial sale.
C) premeditated sale.
D) altruistic sale.
Q4) A nonnegotiable warehouse receipt is like a:
A) straight bill of lading.
B) bill of sale.
C) bill of purchase.
D) slanted bill of lading.
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Q1) The contract for a present sale of goods or for a sale of future goods is a(n):
A) contract for sale.
B) negotiation for sale.
C) accord of sale.
D) non-existent contract.
Q2) Two additional kinds of sales are auction sales and conditional sales.
A)True
B)False
Q3) Stoppage in transit is the right of an unpaid seller to stop goods in transit and order the carrier to hold them for the seller.
A)True
B)False
Q4) In an entire and divisible sales contract,if all the components are interdependent and are included in the same order,an entire contract payment for the contract is required before the whole order is filled.
A)True
B)False
Q5) Explain contract of sale with right of return.
Q6) Describe the purpose and terms of a conditional sales contract.
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Q1) An implied warranty of fitness does not exist if the buyer does not expressly inform the seller of his or her intended use of the merchandise.
A)True
B)False
Q2) Implied warranties can relate to either:
A) the actual or sample goods.
B) oral or written promises.
C) the guarantee or warranty of goods.
D) the title or the quality of goods.
Q3) A definite promise by the seller that the goods will have certain characteristics is a(n):
A) implied warranty.
B) express warranty.
C) limited warranty.
D) surety bond.
Q4) Distinguish between full warranty and limited warranty.
Q5) Implied warranties can relate to either the title or the quality of goods.
A)True
B)False
Q6) What does the "implied warranty of fitness for a particular purpose" require?
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Q1) Agents are usually classified according to the nature of their relationship with their principals.
A)True
B)False
Q2) A principal cannot accept the benefits of a transaction and refuse to accept the: A) obligations.
B) parallel benefits.
C) apparent benefits.
D) representation.
Q3) Agency is a type of contract and,like other contracts,may be terminated by agreement,by performance,or by operation of law.
A)True
B)False
Q4) A principal is liable for the torts and crimes of the agent if they are committed at the direction of the principal or while the agent is performing authorized duties during the ordinary course of the agency.
A)True
B)False
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Q1) An advantage to a sole proprietorship is that the owner has complete authority,within the boundaries of the law,for the running of the business.
A)True
B)False
Q2) Organizations that are referred to as not-for-profits and can include charitable organizations but not organizations such as universities,political parties,labor union,social clubs,and others.
A)True
B)False
Q3) Many people in the United States have an entrepreneurial spirit that encourages them to pursue the "American Dream" of:
A) traveling throughout the world.
B) having employment security.
C) having a leisurely life.
D) owning and operating their own business.
Q4) A corporation drafts articles of incorporation that lists the liabilities of the company.
A)True
B)False
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Q1) The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 does not allow the bankruptcy court to disallow a petition for a Chapter 7 bankruptcy if the individual filing for bankruptcy earns an income that is too high to meet the standards of the means test.
A)True
B)False
Q2) Define and give examples of secured debts.
Q3) Bankruptcy filings can be made for the sole purpose of defrauding creditors.
A)True
B)False
Q4) Under Chapter 13 examples of priority debts include all of the following EXCEPT:
A) certain tax obligations.
B) alimony and child support.
C) wages owed to employees.
D) automobile loans.
Q5) Bankruptcy is the legal state that occurs when a debtor is insolvent,is in default,and is unable to fulfill his or her obligations to pay back his or her creditors.
A)True
B)False
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Q1) All of the following are essential to negotiable commercial paper EXCEPT the fact that it must be:
A) in writing and signed by the maker or drawer.
B) payable to order, to bearer, or to cash.
C) on forms provided by a bank.
D) payable on demand or at a definite time.
Q2) State the differences between commercial paper and an ordinary contract.
Q3) The purpose of the Electronic Funds Transfer Act of 1979 is to govern transfers among financial institutions or among businesses.
A)True
B)False
Q4) An item of commercial paper containing the key words of negotiability,such as "pay to the order of," or their equivalent,is a(n):
A) price quotation.
B) grade instrument.
C) order instrument.
D) bill of lading.
Q5) Describe a cashier's check,who can issue one,and to whom it can be made payable.
Q6) Describe the rules and procedures for stopping payment on a check.
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Q1) Fraud in executing an instrument is a real or absolute defense,but fraud related to the circumstances surrounding the issuing of a paper and not to the paper itself is a personal defense.
A)True
B)False
Q2) The Uniform Commercial Code assumes the instrument is for a valid and existing obligation as warranty in order to ensure the:
A) endorsement of commercial paper.
B) negotiability of commercial paper.
C) transparency of commercial paper.
D) clarity of commercial paper.
Q3) Explain dishonor of commercial paper.
Q4) A defense against payment of commercial paper that claims the instrument was void from the beginning is known as real defense,or absolute defense.
A)True
B)False
Q5) The use of a qualified endorsement affects the negotiability of an instrument. A)True
B)False
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Q1) The evidence of ownership does not create title to personal property.To acquire a title to property,it is necessary to have actual:
A) patent.
B) possession.
C) ownership.
D) exclusive rights.
Q2) A person who finds property has a(n)_________ responsibility to make reasonable efforts to return the property to its rightful owner.
A) ethical
B) joint and several
C) religious
D) legal
Q3) In a property,a person who holds a freehold estate only for his or her lifetime is said to hold a(n):
A) accession in the property.
B) precession in the property.
C) life estate in the property.
D) benefit in the property.
Q4) Briefly discuss the terms,"tenancy by the entirety" and "tenancy in common."
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Q1) The person who ships goods is known as a consignor.
A)True
B)False
Q2) An agreement in which a suitcase is left with a railroad station checkroom is a:
A) bailment for the sole benefit of the bailee.
B) bailment for the sole benefit of the bailor.
C) mutual-benefit bailment.
D) constructive bailment.
Q3) Taking clothes to a dry cleaner transfers possession,but not ownership of the clothes.
A)True
B)False
Q4) A bailee in a bailment for work and services is entitled to hold and,if necessary,sell the property if the bailor does not pay for the services or work done.This provision of law is known as a(n):
A) bailee's lien.
B) equitable lien.
C) diem lien.
D) matthew lien.
Q5) How is an agreement of bailment created?
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Q1) The landlord-tenant relationship can be created by a(n):
A) contingent contract.
B) statutory contract.
C) express or an implied contract.
D) arbitration agreement.
Q2) Explain a landlord's right to rent,regain possession and to evict a tenant.
Q3) A license gives a person the right of possession.
A)True
B)False
Q4) A _________ is somewhat open-ended,since it is automatically renewed at the end of the period,unless the landlord or tenant gives notice of his or her intent to not renew the lease.
A) periodic tenancy
B) tenancy for years
C) tenancy at will
D) tenancy at sufferance
Q5) The law does not give a tenant the right to make reasonable modifications to the leased property.
A)True
B)False

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Q1) A codicil is prepared to:
A) execute a lease deed.
B) execute a sale deed.
C) revoke, alter, or revise a will.
D) revoke, alter, or revise a gift deed.
Q2) If it can be established that the testator lacked testamentary capacity,the will is:
A) viodable.
B) void.
C) valid.
D) enforceable.
Q3) The trustee may not purchase securities that are of very low risk and that appear on a document referred to as a legal list.
A)True
B)False
Q4) A living will is also known as a(n):
A) holographic will.
B) testamentary trust.
C) living trust.
D) advanced health care directive.
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Q1) Computer programs and computer games may not be copyrighted under existing law.
A)True
B)False
Q2) Describe the purpose of design patents,and for how long they are granted.
Q3) Which of the following is not subject to the doctrine of fair use?
A) Criticism
B) Education
C) Infringement
D) Research
Q4) A program with a complex accounting and budgeting program,highly specialized and not intended for wide distribution,would not be considered as a trade secret.
A)True
B)False
Q5) Most firms that have registered trademarks spend considerable amounts of money to research,design,register,and advertise their trademarks.
A)True
B)False
Q6) Define restrictive covenants and explain when they are enforceable.
Q7) What are the rights of a trade registrant?
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Q1) The Electronic Communications Privacy Act (ECPA)makes it a federal crime to monitor e-mail during real time,that is,when it is being sent or received.
A)True
B)False
Q2) Even if a person's intent is good and his or her conduct accidentally causes damage,then he or she may be prosecuted for a federal crime under the:
A) Can-Spam Act.
B) Electronic Communications Privacy Act.
C) Computer Fraud and Abuse Act.
D) Electronic Funds Transfer Act.
Q3) A person who gains unauthorized access to computers,either for mischief or with criminal intent,is called a(n):
A) imposter.
B) fraud.
C) genius.
D) hacker.
Q4) Identify and describe the three major areas that the Computer Fraud and Abuse Act (CFAA)covers.
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Q1) In recent years,it has become quite popular for people to trade and download music and other forms of entertainment (movies,games,etc.)from the Web onto compact disks and other digital storage devices.The legal issue associated with this is:
A) copyright infringement.
B) patent infringement.
C) trademark infringement.
D) service mark infringement.
Q2) The Securities Exchange Commission ensures that prospective investors have access to full and correct information about the company's securities in which they are interested in purchasing.
A)True
B)False
Q3) It is important to note that trading in the stock of the firm by company officials is also called insider trading,but as long as it is reported,it is not illegal.
A)True
B)False
Q4) Explain the role of the Federal Trade Commission (FTC),and the options it has regarding deceptive advertisements.
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Source URL: https://quizplus.com/quiz/55061
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Q1) It is important to recognize the importance of employee and independent contractor distinctions because in order to apply the applicable law,a court first needs to determine whether or not the employer-employee relationship has actually: A) ceased.
B) been ratified.
C) been negated.
D) existed.
Q2) State and describe any three contents of an employee handbook.
Q3) The doctrine of employment at will has been eroded by federal,state,and local statutes; by court decisions; and by:
A) social attitude.
B) moral behavior.
C) company agenda.
D) public policy.
Q4) Information on leaves of absence,jury duty,military leave,and leaves for marriage or religious purposes are not part of the employee handbook.
A)True
B)False
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Q1) Explain the important provisions of the Occupational Safety and Health Act.
Q2) The act passed to promote safety and health in the workplace is known as the:
A) Civil Rights Act of 1964.
B) Occupational Safety and Health Act of 1970.
C) Age Discrimination in Employment Act of 1967.
D) Pregnancy Discrimination Act of 1978.
Q3) Under federal and state law,companies must maintain and report detailed records to demonstrate that their employment practices are nondiscriminatory.These reports are referred to as:
A) bonafide affirmation plans.
B) affirmative action plans.
C) legal insurance plans.
D) antidiscrimination plans.
Q4) The Americans with Disabilities Act of 1990 (ADA)is designed to protect __________from illegal discrimination in employment on the basis of disability.
A) corporations
B) charitable trust
C) state
D) individuals
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Q1) All of the following are the elements that a plaintiff must prove in order to be successful in establishing the defendant's negligence in a product liability lawsuit EXCEPT:
A) warranty.
B) breach.
C) duty.
D) damages.
Q2) As the NHTSA does not administer to the safety of automobiles,the responsibility of controlling automobile emissions rests with the Environmental Protection Agency.
A)True
B)False
Q3) To promote safety for consumers and users of products,some of the _____________ are in effect.
A) constitutional laws
B) state statutes
C) federal statutes
D) legal reforms
Q4) Distinguish among product flaw,failure to warn,and design defect in product liability lawsuits.
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Q1) A lawsuit against the financial planner's unreasonably excessive buying or selling of securities to generate commission is known as:
A) churning.
B) negligence.
C) misrepresentation.
D) fraud.
Q2) While everyone is subject to a lawsuit for negligence,suits by injured or damaged parties charging negligence frequently target:
A) customers.
B) government.
C) manufacturers.
D) professionals.
Q3) It is not a requirement for the plaintiff to show that the defendant owed him or her a duty to either perform an action or not perform an action.
A)True
B)False
Q4) Discuss any two elements of malpractice.
Q5) Discuss the liability of attorneys in professional malpractice.
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Q1) In general,what is the attitude of business executives toward the Foreign Corrupt Practices Act?
Q2) Although the use of English as the language of business is increasing,cultural differences,disparate legal systems,and fluctuating exchange rates remain major obstacles to conducting business internationally.
A)True
B)False
Q3) Trade among nations remains a vital ingredient to the economic health of the world's population.While countries are sovereign and create and interpret their own sets of laws,the goal is that trade be governed by:
A) nongovernmental organizations.
B) international organizations.
C) trade unions.
D) transnational institutions.
Q4) Domestication occurs when the host country takes title to all of the assets of the foreign company.
A)True
B)False
Q5) What is the Doctrine of Comity?
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Q1) The continued use of (a)_________ often causes insects to become immune to the chemical compounds.
A) pesticide
B) minerals
C) polluted water
D) nitrogen
Q2) In an effort to ensure that the federal government itself does not contribute to the destruction of the environment,Congress passed the:
A) Clean Air Act.
B) Environmental Protection Agency Act.
C) National Environmental Policy Act.
D) Clean Water Act.
Q3) ___________ regulates the dumping of waste onto land.
A) Clean Water Act
B) Superfund
C) Environmental Protection Agency
D) Clear Air Act
Q4) Describe the Greenhouse Effect,and discuss how it can impact the environment.
Q5) Discuss the Clean Water Act,and how it relates to Superfund.
Q6) Define nuisance and describe the two categories of nuisance.
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