Introduction to Law
Chapter Exam Questions
Course Introduction
Introduction to Law provides students with a foundational understanding of the legal system, its role in society, and the basic concepts and principles that underpin legal reasoning. The course covers the sources and classifications of law, the structure of courts, and the functions of legal institutions. Students will explore key topics such as constitutional law, civil and criminal law, contract law, and the processes by which laws are created, interpreted, and enforced. Through case studies and real-world examples, learners will develop critical thinking and analytical skills essential for the study and practice of law.
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Legal Environment 4th edition by J. F. Beatty
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Page 2
Chapter 1: Introduction to Law
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Q1) Congress passed a law imposing penalties for displaying "indecent" material online where children could see it.If the U.S.Supreme Court subsequently rules that the law conflicts with the First Amendment of the U.S.Constitution,the statute is void.
A)True
B)False
Answer: True
Q2) State constitutions allow governors to:
A) create state agencies.
B) review the constitutionality of state statutes.
C) issue executive orders.
D) All of the above.
Answer: C
Q3) The U.S.Constitution became one of the most important documents ever written by:
A) creating a limited government of three branches.
B) guaranteeing basic liberties to all citizens.
C) ensuring states play a limited role in citizens' lives.
D) All of the above.
E) Both (a) and (b).
Answer: E
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Page 3
Chapter 2: Business Ethics and Social Responsibility
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Q1) Which of the following are alternatives in dealing with issues of ethics in advertising?
A) Try, in a general way, to minimize racism, sexism, and other exploitation.
B) Include, as part of the development process, a systematic, focused review of the underlying messages contained in advertisements.
C) Refuse to create ads that are potentially demeaning, insensitive, or harmful, recognizing that such a stand may lead to a loss of clients.
D) All of the above are alternatives in dealing with issues of ethics in advertising.
Answer: D
Q2) Which of the following values are considered almost universal?
A) Courage.
B) Pusillanimity.
C) Solifidianism.
D) All the answers are correct.
Answer: A
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Chapter 3: Dispute Resolution
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Q1) Jurisdiction is:
A) the study of law.
B) the authority of a court to decide a particular type of case.
C) a federal court concept.
D) applicable only to appeals courts.
Answer: B
Q2) A prospective juror was excused from serving after being questioned by the plaintiff's attorney.No reason was given for the rejection.This would be accomplished by the use of a peremptory challenge.
A)True
B)False
Answer: True
Q3) Primary methods of alternative dispute resolution include litigation and mediation. A)True
B)False
Answer: False
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Chapter 4: Common Law, statutory Law, and Administrative Law
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Q1) Generally,an initial adjudication before an administrative agency is conducted by:
A) an administrative law judge.
B) an administrative appellate board.
C) an administrative mediator.
D) a federal court.
Q2) Almost all criminal law is statutory because statutory law,unlike common law,is prospective.
A)True
B)False
Q3) The president has the power to remove the chairperson of the Consumer Product Safety Commission,an independent federal administrative agency,if the president disagrees with the chairperson's actions.
A)True
B)False
Q4) The common law is judge-made law;it is the sum total of all the cases decided by appellate courts.
A)True
B)False
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Chapter 5: Constitutional Law
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Q1) The Fifth Amendment to the Constitution provides Robert,an employee of Mattax Paper Co.,due process protection from being fired without a hearing in front of a neutral fact finder.
A)True
B)False
Q2) Identify the basic job of a President of the United States,the source of executive power,and three key powers associated with the position of President.
Q3) Adam moved into an apartment complex.The rules of the complex prohibit unmarried men and women from living together in the same apartment.When Adam's friend,Diane,moved into the apartment he was served with eviction papers.Adam claims the apartment complex is violating his constitutional rights since it allows married couples to live together.Is Adam right?
A) Yes. His equal protection rights have been violated.
B) No. Although he has a fundamental right of cohabitation, it has not been violated.
C) Yes. He and Diane are being treated differently than married couples.
D) No. Even if an equal protection violation could be proven, constitutional protections do not extend to privately owned apartment complexes.
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Page 7
Chapter 6: Torts
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Q1) Runyon was ready to sign a two-year agreement with Barnett Corp.to become Barnett's sales representative for a three-state area.LaPrise,who wants to be the representative for that area,threatens Runyon with bodily harm if he takes the position.Runyon decides his physical well being is more important to him than the job,so he does not accept the position.LaPrise:
A) committed tortious interference with a contract.
B) committed tortious interference with a prospective advantage.
C) committed a battery.
D) caused a breach of contract and committed the tort of intrusion.
Q2) Mavrex,Inc.received an application from Larry and,since his written qualifications seemed to meet a pressing current need,they hired him without checking his references or prior records.Actually,Larry had been in prison for murder several years earlier.Tom,a long-time Mavrex employee,angered Larry when Tom tried to tell Larry how to do his job.Larry attacked and injured Tom.If Tom sues Mavrex,what would his cause of action be,and what elements would Tom need to prove to win his case?
Q3) Wilma's arm is broken when Paula knocks her down during an argument.If Wilma sues Paula for battery,what damages will Wilma be likely to receive?
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Chapter 7: Crime
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Q1) Bieber v.People considered the intent requirement in an armed robbery case.
A)True
B)False
Q2) Miguel reprogrammed a cellular telephone so that the calls were improperly charged to another account.He has violated which statute?
A) The federal Wire and Electronic Communications Act.
B) The federal Access Device Fraud Act.
C) The federal Identity Theft and Assumption Deterrence Act.
D) Only a state statute, the Telephone Fraud Act, since there is no federal legislation related to this problem.
Q3) Barden Corporation was convicted of violating RICO.Accordingly:
A) the government may file criminal charges against both the company and the individuals associated with the criminal acts.
B) the government may file a civil lawsuit against the company to obtain injunctions and other relief.
C) individuals may file civil lawsuits against the company for violating the RICO statute to recover losses sustained by the criminal act.
D) All the above are correct.
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9
Chapter 8: International Law
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Q1) Axle Corporation imports goods into the United States.Who is required to pay the duty on the goods?
A) The importer, Axle Corporation.
B) The World Trade Organization.
C) The importer and exporter each pay one-half the duty.
D) The exporter of the goods.
Q2) As of 2007 data, the top five nations that trade the most goods with the United States, in order of percentage of total trade are China, Canada, Mexico, Japan, and Brazil.
A)True
B)False
Q3) The two principal requirements of the Foreign Corrupt Practices Act involve bribes and grease payments.
A)True
B)False
Q4) Yount,Inc.is interested in expanding its business to include exporting its products to several other countries.Discuss two federal statutes that should be considered before making the decision to export.
Q5) Explain the origin and purpose of the World Trade Organization.
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Chapter 9: Introduction to Contracts
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Q1) In the historic case of Hamer v.Sidway,the uncle's estate:
A) lost, as there <u> was </u> consideration.
B) lost, as the uncle was dead.
C) won, as there <u>was no</u> consideration.
D) won, as there was a completed gift.
Q2) Zena enters into a contract with Steeley Company to purchase a washer and dryer.She doesn't understand the financing terms,but signs the agreement anyway because she needs the appliances.The financing terms are very unfavorable to Zena,and she is unable to make all of her payments when they are due.Steeley sues.The court would:
A) be exercising judicial restraint if it requires Zena to pay as she promised, even if the agreement was unfair and unwise.
B) have to rewrite the contract because that is the only way to be fair to both parties.
C) have to declare the contract void since it contained terms unfavorable to the weaker party to the transaction.
D) use the theory of promissory estoppel to remedy any unfavorable terms in the contract.
Q3) List and briefly describe the basic elements of a contract.
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11
Chapter 10: Legality, consent, and Writing
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Q1) In 1970,Continental Airlines agreed to buy a number of DC-10 airplanes from McDonnell Douglas Corporation (MDC).Their contract included a limited warranty in which MDC undertook certain servicing obligations and an exculpatory clause in which Continental waived "all other remedies" against MDC.On March 1,1978,one of these DC-10s was nearing takeoff at Los Angeles International Airport when the two front tires of its left-side landing gear blew out.The pilot aborted the takeoff,but the uncushioned landing gear tore through the tarmac and broke away from the plane.This ruptured the left wing fuel tank,which burst into flames.The emergency escape slides failed,apparently due to the heat of the fire.Some passengers evacuated through the copilot's window,others jumped from the exits.Four passengers died,and over 70 suffered injuries.The plane was destroyed.It should be noted that the exculpatory clause did not prevent the passengers from suing Continental and/or MDC.Continental sued MDC and MDC defended based on the exculpatory clause.Is this type of clause enforceable? Discuss exculpatory clauses,particularly the one involved here.
Q2) Roger parked his car at a garage that has a large sign at the entrance saying,"This garage is not liable for items stolen from a car." This type of notice is referred to as an exculpatory clause.
A)True
B)False
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Chapter 11: Conclusion to Contracts
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Q1) Delana materially breaches a contract she made with Garnett.As a result:
A) Garnett may sue for damages, but only after he performs his duties under the contract.
B) Garnett is discharged from his obligation to perform his duties under the contract, and he may sue for damages.
C) the contract will be declared void because of frustration of purpose.
D) the contract will be declared void because of commercial impracticability.
Q2) A statute of limitations,which limits the time in which a lawsuit may be brought,may be different for oral and written contracts.
A)True B)False
Q3) Ramon purchased 5,000 pounds of coffee from Quick Jump Coffee.The coffee was to be delivered on September 1.Since the contract included a date for performance,time is of the essence.
A)True B)False
Q4) Most contracts are discharged by full performance.
A)True B)False
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Chapter 12: Sales and Product Liability
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Q1) Identify and explain the two tests courts have adopted for design and warning cases under strict liability.
Q2) Which of the following types of property would be classified as "goods" under Article 2 of the UCC?
A) Cash in hand.
B) A stock certificate.
C) A computer.
D) A membership to a health club.
Q3) In order for a warranty of fitness for a particular purpose to be in effect:
A) it must be expressed either orally or in writing.
B) the seller must know the buyer is relying on the seller's skill or judgment.
C) the seller, at the time of contracting, must know about a particular purpose for which the buyer wants the goods.
D) All of the above.
E) Both (b) and (c).
Q4) Jasmine agrees in writing to purchase 1,500 tons of recycled glass from Louie,the price to be determined at the time of delivery.Is such an agreement enforceable? Compare the common law with Article 2 of the UCC.
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Page 14
Chapter 13: Negotiable Instruments and Banks
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Q1) The transferee's rights in non-negotiable commercial paper are conditional,but the transferee's rights in negotiable commercial paper are unconditional.
A)True
B)False
Q2) The EFTA addresses all but which of the following kinds of errors?
A) Unauthorized transfers.
B) Disbursement errors.
C) Computational mistakes.
D) Payments on altered and forged checks.
Q3) A bank may continue to pay checks for 20 days after it learns of the death of its customer who wrote them unless it receives a stop payment order from someone claiming an interest in the account.
A)True
B)False
Q4) Al has authorized the payment of his cell phone bill through electronic fund transfer each month.In July,the bank's system malfunctions,preventing the usual transfer.Discuss the effect of the malfunction on Al's obligations.
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15
Chapter 14: Secured Transactions and Bankruptcy
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Q1) First Bank loaned $400,000 to Thomas,taking a security interest in his yacht.Thomas defaulted on the loan and First Bank repossessed the boat.First Bank sold the yacht at a public sale.The sale yielded $50,000 more than the debt.First Bank:
A) must pay Thomas the $50,000.
B) is entitled keep the $50,000.
C) must share the $50,000 equally with Thomas.
D) must pay the surplus to the Secretary of State.
Q2) In a Chapter 13 bankruptcy,creditors cannot force a debtor into bankruptcy;nor can they vote to confirm or reject a plan of reorganization.
A)True
B)False
Q3) To perfect a security interest in a negotiable instrument,Second State Savings and Loan should:
A) file a financing statement.
B) take possession of the instrument.
C) do nothing. Perfection is automatic.
D) secure a court order.
Q4) Explain the difference between attachment and perfection.
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Page 16
Chapter 15: Agency
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Q1) The bankruptcy of an agent automatically terminates an agency relationship.
A)True
B)False
Q2) Wanting to save the money she would have to pay for a commission,Marsha asks her friend Howard to check on the Internet and see if he can find a five-day cruise to the Bahamas for under $400 and if he does,to book it for her.He agrees,but later tells her he doesn't have time to check for her.Howard is:
A) liable to Marsha for damages if she misses an opportunity to go on such a cruise because Howard terminated the agreement when he did not have the power to do so.
B) not liable to Marsha because he was a gratuitous agent and had both the power and the right to quit any time he wanted.
C) liable to Marsha for damages because Howard terminated the agreement without the right to do so.
D) liable to Marsha for breach of the duty to cooperate.
Q3) An agent must obey any and all instructions of the principal.
A)True
B)False
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Page 17
Chapter 16: Employment Law
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Q1) The Fair Labor Standards Act:
A) requires employers to pay all employees time and a half for any hours worked over 40 per week.
B) allows sixteen-year-olds to work unlimited hours in nonhazardous jobs.
C) prohibits children under fifteen from working, even in nonhazardous jobs.
D) All of the above.
Q2) Explain the Title VII requirements on affirmative action,and identify three sources of affirmative action programs.
Q3) If an employee is an employee at will,the traditional rule was the employer could fire the employee for a good reason,a bad reason,or no reason at all.
A)True
B)False
Q4) It is currently legal for a private employer to use lie detector tests as part of its usual hiring process.
A)True B)False
Q5) The National Labor Relations Act includes the minimum wage laws.
A)True
B)False
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Chapter 17: Labor Law
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Q1) Secondary boycotts are:
A) generally legal provided the boycott is peaceful.
B) generally legal provided the boycott does not involve public employees such as nurses or school teachers.
C) not expressly permitted nor prohibited under federal law.
D) generally illegal.
Q2) Valley Mart told its employees that they would be fired if they actively supported a unionizing effort.Valley Mart has committed an unfair labor practice.
A)True
B)False
Q3) The management and union at TriColor have bargained for two years without reaching an agreement.After notifying the union,TriColor prohibited the workers from entering the factory to work.This is a legal offensive lockout.
A)True
B)False
Q4) Rick and Allan want to start a union in the small factory where they work.Outline the basic procedures they will need to follow to get a union recognized as the exclusive bargaining unit for the company employees.
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19
Chapter 18: Starting a Business: Llcs and Other Options
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Q1) The case of Apcar v.Gaus illustrates that it is essential to comply with all the technicalities of a limited liability partnership statute.
A)True
B)False
Q2) The term "S Corporation" comes from:
A) the Internal Revenue Code.
B) the FTC rules.
C) the U. S. Constitution.
D) state corporation law.
Q3) Murray was a partner in a large firm.He died unexpectedly.His son,Frank,wanted to take over for his father in the partnership and was well qualified to do the work his father had done.Which statement best describes Frank's rights in the partnership if he inherits the interest?
A) Frank has a right to take over for his father in the partnership.
B) Frank is entitled to the value of his father's interest in the partnership, but not to become a full partner.
C) Frank has no rights to his father's partnership interest.
D) None of the above.
Q4) Briefly discuss the limitations on a corporation electing Subchapter "S" status
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Chapter 19: Corporations
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Q1) Shareholder proposals on the company proxy statement:
A) must be stated in the form of a request or recommendation according to SEC rules.
B) may only be implemented by the company if they receive support from at least a simple majority of the shareholders.
C) are, in about half of the cases, withdrawn before a vote because the company decides to implement the proposal.
D) may address only corporate-governance issues, such as cumulative voting or executive compensation, but may not address the shareholder's political agenda, such as saving the environment.
Q2) A corporate charter is filed with:
A) a state's Secretary of State office.
B) a state's Treasury and/or Revenue Division.
C) the United States Department of Commerce.
D) All the above.
Q3) One of the directors of Independent Pallet Mill purchases 100 acres of timberland.In order for him to sell the timber from this land to Independent,what must he do? If he does not act properly in this situation,what duty would he violate,and what would be the result?
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Chapter 20: Securities Regulation
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Q1) Jackie learned of insider trading information while talking to Mark,a director of a large corporation.She took advantage of the information to buy stock and make a huge financial gain.If she is accused of violating securities law,what must the government prove in order to gain a conviction against Jackie?
Q2) The Foreign Corrupt Practices Act:
A) applies only to corporations registered under the federal Securities Exchange Act.
B) makes it illegal to bribe U. S. and foreign officials.
C) applies to U. S. corporations, whether reporting under the 1934 Act or not.
D) applies only to foreign corporations bribing U. S. officials.
Q3) After the SEC completes its review of a preliminary registration statement,it sends the issuer a comment letter setting forth changes that must be made.
A)True
B)False
Q4) Typically,exemptions from registration under the 1933 Act are based on either the type of security or the type of transaction.
A)True
B)False
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Chapter 21: Antitrust
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Q1) Great Source Co.has an 85 percent market share.Under modern antitrust law,Great Source necessarily has a monopoly.
A)True B)False
Q2) Asher Furniture Store offered customers the option to purchase living room furniture as a set.Each set included a sofa,chair,coffee table,and end table.The set price is 10% less than the cost of the individual pieces.In selling the furniture in sets,Asher Furniture has:
A) violated antitrust law. This is an illegal tying arrangement. B) violated antitrust law. This is illegal price discrimination.
C) violated antitrust law. This is vertical price maintenance. D) not violated antitrust law.
Q3) Both "per se" and "rule of reason" violations of the Sherman Act are automatically illegal.
A)True B)False
Q4) The Sherman Act was designed to prevent extreme concentrations of economic power.
A)True B)False
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Chapter 22: Cyberlaw
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Q1) You make an online purchase of a hooded sweatshirt with the logo of the Dallas Cowboys.The next time you log on,your screen has a banner ad for Dallas Cowboy hats and shirts.This banner ad is most likely the result of:
A) a cookie.
B) a coincidence.
C) the Internet crime of theft of private information.
D) encryption software.
Q2) The federal government has preempted the field of online privacy,so states may not pass their own online privacy statutes.
A)True
B)False
Q3) The federal CAN-SPAM Act has noticeably decreased the amount of spam.
A)True
B)False
Q4) When you surf the Internet,information,much of which is anonymous,is collected about you.
A)True
B)False
Q5) Discuss how cookies and caches are used.
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Chapter 23: Intellectual Property
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Q1) List the four different types of "marks" that can be protected under trademark law.Explain how each mark is used.
Q2) Unlike patents,the ideas underlying copyrighted material need not be novel.
A)True
B)False
Q3) Under the fair use doctrine,educational institutions cannot be liable for copyright violations.
A)True
B)False
Q4) The term "patent," if used by itself,refers to a design patent,but utility and plant patents are also available and should be designated as such.
A)True
B)False
Q5) The requirements for a patent include all except that the invention must be: A) novel.
B) nonobvious.
C) commercially valuable.
D) useful.
Q6) Briefly discuss a patent,copyright,and trademark.
Page 25
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Chapter 24: Property
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Q1) If you grant a nonpossessory interest to Eagle Logging to enter your land and remove timber from ten acres,you have granted Eagle a profit.
A)True
B)False
Q2) Steve owns his house in fee simple.The state wishes to build a much-needed new highway through the center of his house.Steve does not want to give up his home.The state will be able to take the land through the use of its condemnation power,also called:
A) highway robbery.
B) adverse possession.
C) eminent domain.
D) prescription easement rights.
Q3) Chet rents an apartment for the school year from September through May.This is a periodic tenancy,which terminates automatically when the agreed period ends. A)True
B)False
Q4) Discuss the tenant's and the landlord's basic duties under a landlord-tenant relationship.
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Chapter 25: Consumer Law
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Q1) If a consumer cancels a door-to-door sale within the required time,how many days does the seller have to return the buyer's money?
A) Three.
B) Ten.
C) Twenty-one.
D) Thirty.
Q2) Don received in the mail merchandise he never ordered.The package was addressed to him,and when he opened it he saw a brochure stating he could keep the products for only $19.95.If he chose not to keep the products he was instructed to mail them back within five days.Don:
A) can keep and use the merchandise without having to pay for it.
B) can keep the merchandise only if he pays the $19. 95.
C) must send the merchandise back if he does not want it.
D) None of the above is correct.
Q3) "Bait and switch" tactics are a violation of FTC rules.
A)True
B)False
Q4) What are the three tests or elements used by the FTC to determine whether a particular act is an unfair trade practice?
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Chapter 26: Environmental Law
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Q1) Under Superfund legislation,to what extent must a hazardous waste site be cleaned?
A) Reasonable conditions under the circumstances.
B) A safe level for the area in which it is located.
C) Pristine condition, regardless of cost, even if this is better than it was before the hazardous waste was dumped onto it.
D) To the condition of the property before the hazardous waste was dumped on it.
Q2) Federal legislation requires the government to develop plans to revive species that are in danger of becoming extinct.
A)True
B)False
Q3) A Japanese company operates a ship called the Kinia.If the Kinia sails in U.S.waters,it must comply with the standards set by the Oil Pollution Act of 1990.
A)True
B)False
Q4) Lanigan Manufacturing,a new corporation,estimates it may generate approximately 200 kilograms of hazardous waste each month.Discuss the EPA requirements it faces in relation to this waste.
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