87) Cheryl Peterson, a U.S.-based business executive, paid the equivalent of $20 to an official of
the country of Murundi to expedite the overnight delivery of critical documents. When questioned,
Cheryl Peterson claimed this was a way to facilitate the performance of an obligation that was
already agreed upon. The $20 is an example of
A) an under-the-table payment.
B) a bribe.
C) a violation of the Foreign Corrupt Practices Act.
D) an inappropriate payment.
E) a grease payment.
88) Grease payments or speed money are allowable under U.S. law as a way to expedite the
A) implementation of a new government office.
B) incoming federal income tax.
C) performance of a routine government action.
D) creation of new state-owned business.
E) breach of the rule of law.
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89) In which of these situations is Copper Coil Inc. using a grease payment?
A) Copper Coil Inc. paid a fine of $2500 for violating the labor laws in a foreign country.
B) Copper Coil Inc. made a small payment of $20 to speed up some paperwork related to tax
returns in a less developed country.
C) The proprietor of Copper Coil Inc. made payments to the Mafia as a protection against violent
retribution.
D) Copper Coil Inc. gave gift vouchers to all its product wholesalers in order to promote the
product.
E) Copper Coil Inc. made an unrecorded payment to one of its accountants in return for window
dressing the company’s accounts.
90) Brett Robertson is a playwright and in order to protect his intellectual property should secure a
________ on all of his plays.
A) patent
B) trademark
C) grease payment
D) permit
E) copyright
91) Products of the mind, such as computer software, a screenplay, a music score, or the chemical
formula for a new drug, constitute
A) assets which receive no protection under law.
B) non-performing assets.
C) tangible assets.
D) intellectual property.
E) real property.
92) Varsa Incorporated, a multinational giant, runs a number of diversified businesses. The
intellectual property of the firm would include
A) income arising from renting land and buildings.
B) profits arising from the sale of agricultural crops.
C) interest earned by lending capital to other firms.
D) all computer software for budgeting designed by employees.
E) investments made in raw materials and machinery.
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93) Karli invented a fitness board and has some interest from major athletic equipment retailers.
Before she agrees to work with the retailers, she wants to protect her invention so it is her sole
property to manufacture and sell. What does Karli need to help her do this?
A) copyright
B) trademark
C) patent
D) warranty
E) service mark
94) Cord Paper Corporation has developed a new type of decorative paper. Which type of legal
protections can grant the company exclusive rights for a defined period to the manufacture, use, or
sale of the new paper?
A) warrant
B) patent
C) copyright
D) trademark
E) writ
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95) A composer can protect an original musical score from being copied and sold by someone else
by acquiring a(n)
A) patent
B) warrant
C) trademark
D) copyright
E) affidavit
96) Which of these items can be protected by a copyright?
A) new manufacturing process invented in a company
B) newly invented telecommunication device
C) tangible property like land and building
D) movies produced and directed by a person
E) new type of car invented by an automobile company
97) The Wilson logo can only be used on sports equipment produced by the Wilson Sporting
Goods company. What protects the Wilson logo from being used by another manufacturer?
A) trademark
B) affidavit
C) patent
D) warrant
E) contract
98) Intellectual property laws protect
A) the originator of a new invention.
B) government officials when travelling to foreign countries.
C) the parts supplier in an international transaction.
D) individuals who want to open a franchise of a retail store.
E) a company from losing business to a monopoly.
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99) While he was shopping for new clothes, Manuel noticed there was a sale on shirts by Ralph
Lauren. The Ralph Lauren name is an officially registered ________ in menswear clothing.
A) intellectual property
B) patent
C) contract
D) copyright
E) trademark
100) All of the books in a library have a ________, which shows the exclusive legal rights of the
author of the book.
A) copyright
B) trademark
C) libel
D) patent
E) folkway
101) The strong enforcement of intellectual property laws helps to
A) reduce the piracy (theft) of intellectual property.
B) reduce the attractiveness of a country as a market or investment site.
C) reduce the investments made by companies on basic research.
D) limit creativity and innovation among people.
E) prohibit a company from having a monopoly over its breakthrough inventions.
102) Product safety and product liability laws are enforced to protect
A) intellectual property rights.
B) companies from their domestic competitors.
C) companies from their foreign competitors.
D) consumers.
E) product inventors.
103) Product ________ law holds a firm and its officers responsible when a product causes injury,
death, or damage.
A) equity
B) consumption
C) liability
D) parity
E) testing
104) A boom in product liability suits and awards in the United States resulted in a dramatic
increase in the cost of liability insurance. Many business executives argue that this
A) makes American businesses less competitive in the global marketplace.
B) offers American businesses greater protection from foreign competitors.
C) exposes consumers to greater product risks.
D) eventually makes it cheaper for foreign companies to do business in the United States.
E) discourages American companies from outsourcing jobs to less developed countries.
105) Nathan works for a major automobile manufacturing company. His company is being sued by
hundreds of customers who have been injured when the steering wheel airbags exploded upon a
low-impact collision. The customers are demanding monetary damages. This lawsuit is based on
A) facilitating payments.
B) intellectual property rights.
C) criminal law.
D) product liability.
E) patent violations.
106) Which of these individuals can claim product liability from the offender?
A) Jason wants to sue a multinational company for mass manufacturing one of his inventions
without purchasing the rights.
B) Rebecca’s patented jewelry designs have been imitated and sold at a low price under her brand
name.
C) The back tire on Brian’s motorcycle shredded when still under warranty and caused him to
crash.
D) Fred has accused his employer of forcing him and his teammates to work in an unsafe
environment.
E) Samantha claims that her neighbor has stolen valuable ancestral antiques from her house.
107) Kendra has red patches on her face after using a protein-based lotion manufactured by
Today’s Skin Research Lab. She learned that the lotion’s steroid levels were beyond the standard
levels permitted by the government and the damage caused by the lotion was irreversible. Which
standards will address Kendra’s grievances?
A) laws related to property rights
B) product liability laws
C) intellectual property laws
D) Foreign Corrupt Practices Act
E) Sarbanes-Oxley Act
108) A nation that has ________ would be unappealing as a place for doing business.
A) a market-based economic system
B) a strong legal system
C) a democratic political institution
D) strong property rights
E) a totalitarian political system
109) If a country wants to improve its attractiveness as a place for doing business and as an
investment site, it should
A) oppose the rule of law.
B) ensure that the economic activity is heavily regulated by the state.
C) move toward a market-based system.
D) extensively restrict property rights.
E) avoid enforcing intellectual property laws.
110) What are the basic differences between a democratic and a totalitarian government? Explain
how the dimensions of individualism and collectivism play a role in these types of government.
111) Describe in brief the different forms of totalitarianism.
112) Discuss a market economy and describe the role of a consumer in this type.
113) Discuss why command economies tend to stagnate.
114) Discuss the origins of a common law system and explain the role judges in this system.
115) Describe the significance of Contracts for the International Sale of Goods (CISG).
116) Compare how property rights can be subject to private action and public action.
117) Describe the Foreign Corrupt Practices Act.
118) Explain the role of grease payments and how they are viewed by the U.S. government.
119) How do patents, copyrights, and trademarks differ from each other?
120) Discuss how the computer software industry has been affected by the poor enforcement of
intellectual property rights.
121) Discuss the difference between civil and criminal liability laws and explain how these laws
differ in developed and less-developed nations.
122) How do the political, economic, and legal environments of a country affect international
trade? And what factors make a country favorable for doing business?