Appendix A 4 Big Johnson charges other firms similar to Moe's Meats more for the same products and this is beginning to hurt the business of the other firms

239. (p. 584) Which of the following was included in the basic rights of consumers as proposed by President John

Kennedy?

A. the right to the best price

240. (p. 583) Big Johnson Products charges Moe’s Meats a lower price for goods because Moe and Johnson play

golf together regularly. Big Johnson charges other firms similar to Moe’s Meats more for the same products and

this is beginning to hurt the business of the other firms. In fact, Moe’s Meats is taking so much business away

from the others due to its lower prices that the other firms are in danger of going out of business. This is an

example of:

D. price maintenance.

241. (p. 583) Happy Pat’s Pizza Parlor is concerned about a vendor’s demand that he purchase unwanted supplies

in order to buy the supplies he does want. This practice is known as:

D. interlocking directorates.

242. (p. 584) A government policy aimed at reducing the purchase of a specific good through increased taxes has

been most often applied to:

D. diet soft drinks.

243. (p. 584) Which of the following refers to a tax designed to reduce the consumption of a specific good?

D. a tax credit

244. (p. 584) Which of the following do school districts utilize to generate needed funding?

A. sin tax

245. (p. 586, figure A.5) __________ taxes often help to pay for highway construction or improvements.

D. Facility taxes

246. (p. 586, figure A.5) __________ are the largest source of tax income received by the federal government.

D. Excise taxes

247. (p. 584) The two main purposes of taxes are:

D. to strengthen monetary and fiscal policies.

248. (p. 585-586) Mark and Barry own the Warehouse Liquor Store in town. They are careful to pay all of their

taxes in full and on time. Recently the local government has decided to raise the taxes imposed on the sale of

cigarettes and liquor. Barry and Mark are upset about this because:

D. their personal property tax will now increase.

249. (p. 585) ________ is the legal process by which a person, business, or government entity unable to meet

financial obligations is relieved of those debts.

A. Emancipation

250. (p. 587) The section of the Bankruptcy Code that allows a business to reorganize and pay only a limited

proportion of its debts is Chapter:

D. 17.

251. (p. 586) In which of the following does the creditor start legal procedures?

A. debtor initiatives

252. (p. 586) The number of personal bankruptcies has:

D. remained unchanged.

253. (p. 586) Which of the following is considered as a cause for the significant increase in bankruptcies?

A. a decrease in the understanding of bankruptcy law

254. (p. 587) The financial claims of ________ are given priority when assets are distributed among creditors in a

bankruptcy case.

A. employees

255. (p. 587) Utilizing the bankruptcy laws, Yankee Distribution petitioned the court to reorganize and continue

operations while paying only a limited proportion of its current debts. This represents an example of a Chapter

________ bankruptcy.

C. 13

D. 14

256. (p. 588) ________ is the process of eliminating laws and regulations that hinder competition.

A. Downsizing

257. (p. 588) Concerns over the increase in the number of business laws and regulations that were costing the

public money led to:

A. downsizing.

258. (p. 588) Which of the following industries has been deregulated?

A. chemicals

259. (p. 588) One result of deregulation in the airline industry has been:

A. less intense competition.

260. (p. 538) Several states now allow for competition in the electric power industry. Business customers, for

example, can purchase their electric service from several different utility companies. This activity reflects a

movement toward ________ in the utility industry.

A. re–regulation

261. (p. 538) One of the benefits that deregulation is supposed to provide to customers is:

D. improved government oversight.

262. Explain the difference between statutory law, common law, and business law.

263. What type of law is tort law? Explain what a tort is as well as the meaning of negligence.

264. Compare and contrast the protection offered by patents, copyrights, and trademarks.

265. What is the Uniform Commercial Code and why is it important?

266. Identify and discuss the six conditions that must be met for a contract to be legally binding.

267. Explain two of the major U.S. antitrust laws.

268. Describe bankruptcy and three sections of the Bankruptcy Code.

269. (p. 576) 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.

D. She can do nothing about this except not go to the restaurant ever again.

270. (p. 587) Sondra was expecting a shipment of food from one of her suppliers and it didn’t come. When she

called the supplier the phone was disconnected. Later Sondra read that the supplier had gone out of business

because it couldn’t pay its debts. The supplier likely declared Chapter __________ bankruptcy.

D. 17

271. (p. 585, figure A.4) One of the newest items on the Cajun Cookin’ menu is a spicy Cajun-burger. Sondra was

quite surprised to learn that how she made this burger was regulated by the:

D. State Board of Food Examiners.

272. (p. 581) Cajun Cookin’ sits on a large landscaped lot. Brian and Sondra have a contract with Lovely

Landscapes to mow the lawn and take care of the landscape. They pay $200 per month for this service. After

two weeks had gone by with no service, Brian called the company only to find out that the owner and the crew

had decided to take a vacation and would not be back to do the landscaping for another two weeks. Lovely

Landscapes:

A. has discharged its obligation to Brian.

273. (p. 582) As it turns out, Brian and Sondra’s good fortune with the restaurant has caused their competitors to

lose business. In fact, Cajun Cookin’ has been so successful that two other nearby restaurants are in danger of

going out of business. Brian and Sondra have:

A. engaged in anti-competitive behavior.

AppA Summary