Bonus Chapter A – Working within the Legal Environment
________ is the process of eliminating laws and regulations that hinder competition.
A. Downsizing
B. Restructuring
C. Deregulation
D. Reregulation
241. Concerns over the increase in the number of business laws and regulations that were
costing the public money led to:
A. downsizing.
B. restructuring.
C. deregulation.
D. reregulation.
242. Which of the following industries has been deregulated?
A. Chemicals
B. Agriculture
C. Airlines
D. Steel
Bonus Chapter A-76
247. Explain the difference between statutory law, common law, and business law.
248. What type of law is tort law? Explain what a tort is as well as the meaning of
negligence.
Bonus Chapter A-77
250. What is the Uniform Commercial Code and why is it important?
Bonus Chapter A-78
251. Identify and discuss the six conditions that must be met for a contract to be legally
binding.
1. An offer is made to do something or sell something.
2. There must be voluntary acceptance of the offer. If one party is under duress, the contract is
3. Both parties must give consideration. Consideration is something of value.
4. Both parties must be competent. Minors, people of unsound mind, or people under the
5. The contract must involve a legal act.
6. The contract must be in proper form, which usually means it must be in writing.
252.
Bonus Chapter A – Working within the Legal Environment
Explain two of the major U.S. antitrust laws.
Bonus Chapter A-81
254. One day as Brian was speaking with one of his customers a shriek went up from the
other side of the restaurant. When he rushed over, he found that one of his customers had
spilled hot tea on her arm. If this customer was so inclined, she could __________ and the
court would likely find in her favor.
A. sue Brian for breach of contract
B. sue the restaurant for negligence
C. sue the restaurant under statutory law
D. She can do nothing about this except not go to the restaurant ever again.
Feedback: Negligence, in tort law, deals with behavior that causes unintentional harm or
injury. McDonald’s was sued in a similar situation when a patron spilled hot coffee on herself
and sued.
