191. (p. 574) The Griggs v. Duke Power Company (1971) case established a precedent on the need to use
job-related tests in employment practices. Similar court cases have been decided based on this decision. This is
an example of:
D. criminal law.
192. (p. 574) Chicago’s mayor has just signed legislation requiring fire sprinklers in every public school. This is an
example of:
D. unwritten law.
193. (p. 576) Tort law is an example of __________ law at work.
D. administrative
194. (p. 576) Which of the following holds a company liable for negligence in the production, design, sale, or use
of products the firm markets?
A. breach of contract
195. (p. 576) 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
196. (p. 576) A(n) __________ tort is a willful act that results in injury.
D. statutory
197. (p. 576) When a person’s or company’s behavior causes unintentional harm or injury to others they are said to
be __________ in tort law.
A. out-of-control
198. (p. 576) The remedy for a tort is:
199. (p. 576) When McDonald’s lost a lawsuit to a person severely burned by hot coffee McDonald’s was found to
be guilty of:
D. packaging liability.
200. (p. 576) Under the doctrine of strict product liability, a manufacturer can be held liable:
D. only if the firm intentionally introduced a defective product.
201. (p. 576) Warren Tee was injured using a hair dryer manufactured by the Whoopee Electrical Products
Company. Warren has contacted a lawyer because he feels that Whoopee is responsible for his injury based on
the legal principle of:
A. restricted endorsement.
202. (p. 576) The City of New Orleans filed suit against certain gun manufacturers for financial payments to cover
the costs of police work and medical care as a result of gun violence. This suit was based on the legal principle
of:
203. (p. 577, figure A.2) In 1978, a 13-year-old boy was severely burned in a rear-end collision involving a Ford Pinto.
The case went to court and Ford was ordered to pay $125 million in punitive damages based on the legal
principle of:
D. exclusive dealing.
204. (p. 577) A patent gives inventors exclusive rights to their inventions for:
A. 20 months.
205. (p. 578) Which of the following protects the original work of authors and artists (i.e., their books, photos, or
cartoons)?
D. a patent
206. (p. 579) The Nike Swoosh and the Golden Arches of McDonald’s are examples of a:
C. copyright.
207. (p. 579) Who owns the copyright of a cartoon character created by an employee of a firm as part of their
normal job responsibilities?
D. the union that represents the employee
208. (p. 577) Close to __________ percent of patent applications are approved.
A. 40
209. (p. 578) A(n) __________ patent refers to the situation when some inventors intentionally delay a patent
application because they expect others to develop similar products or technology.
A. underground
210. (p. 577) The intent of a patent is to:
D. encourage copycat inventions.
211. (p. 578-579) Which of the following is true of a copyright?
D. It is good for 20 years.
212. (p. 579) The Pillsbury Doughboy is an example of a:
A. patent.
213. (p. 577) Without the permission of the inventor, Cheatum Automobile Manufacturing copied the engine
design of an innovative competitor. Cheatum is guilty of:
A. corporate liability.
214. (p. 579) Michael opened a new bakery. He had always admired the cute, friendly face of the Pillsbury
Doughboy so as a tribute to Pillsbury, he decided to use it as his company’s logo. Not long after Pillsbury sued
him for:
D. patent infringement.
215. (p. 579) Which of the following was designed to simplify and standardize the laws affecting businesses
involved in interstate trade?
A. common law
216. (p. 579) The warranty you receive in the box with your new DVD is a(n):
D. commercial warranty.
217. (p. 579) A(n) _________ guarantees that the product you buy will conform to the customary standards of the
trade/industry.
D. commercial warranty
218. (p. 580) __________ instruments are forms of commercial paper that are transferable among businesses and
individuals that represent a promise to pay a specified amount.
A. Uniform
219. (p. 579) A warranty guarantees that:
A. the seller will replace or repair the product at no charge if the customer finds a cheaper substitute.
220. (p. 580) Which of the following is a requirement for commercial paper to be considered a negotiable
instrument? It must:
A. be signed in approval by a third party.
221. (p. 580) You verbally promise to pay your sister tomorrow the $25 that you owe her. This promise however,
is not a negotiable instrument because:
D. it does not contain an unconditional promise.
222. (p. 579) A software development firm based in Florida and conducting business in Texas is unsure about the
differences in state laws regarding business transactions. What body of laws standardizes interstate business
regulations?
D. Unified Commercial Regulations
223. (p. 579) One of the reasons you bought your mom a name-brand mixer for Mother’s Day was that it came
with a full warranty. This means that:
A. the mixer is guaranteed to last for 10 years with normal use.
224. (p. 580) Which of the following describes the requirement that both parties in a legally binding contract must
give something of value?
A. competent parties
225. (p. 580) Which of the following would cause a contract to be void?
A. consideration
226. (p. 581) A(n) __________ occurs when one party fails to follow the terms of a contract.
D. infringement of contract
227. (p. 580) A __________ is a legally enforceable agreement between two or more parties.
A. warranty
228. (p. 580) Which of the following is a condition required for a legally binding contract?
A. discharge of obligation
229. (p. 581) You and your neighbor have agreed to a contract where he will cut your grass every other week for
which you pay $30. However, for no apparent reason, he has not cut your grass for a month. Your neighbor has
committed a(n):
D. nonperformance endorsement.
230. (p. 580) You agree to sell your car to your neighbor for $5,000. You and your neighbor have provided each
D. an expressed warranty.
231. (p. 581) 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.
232. (p. 580-581) James advertises in the newspaper to sell his used car for $6,000. Eric test drove the car and then
offered James $5,400 for the car. In this case:
A. the two parties have created a legally enforceable contract.
233. (p. 581) You and your boss agree to terminate your employment contract because you want to devote more
time to school. This breach of contract would likely be resolved by:
A. a specific performance requirement.
D. Wheeler-Lea Amendment
235. (p. 583) Which of the following established a government agency to enforce the laws regulating unfair
competition?
A. Clayton Act
236. (p. 584) The social movement designed to increase and strengthen the rights and powers of buyers in business
transactions is called:
237. (p. 582) The purpose of the Sherman Antitrust Act was to:
D. minimize the inconsistency of multiple dealers of a single product.
238. (p. 583) The use of tying contracts was prohibited by the Clayton Act of 1914 because these contracts:
D. forced competitors into price discrimination agreements.