Appendix D for Unit Four
Questions on the Features
N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows.
N A question new to this edition of the Test Bank.
+ A question modified from the previous edition of the Test Bank.
= A question included in the previous edition of the Test Bank.
CHAPTER 19—SHIFTING LEGAL PRIORITIES FOR BUSINESS:
FAIR TRADE AND ENVIRONMENTAL SUSTAINABILITY
A1. Hamidi, a coffee farmer in Kenya, forms an alliance with Guthrie, an importer and
marketer in Ireland. Their products carry a Fair Trade label. This means that Hamidi
a. accepts whatever price for his products that the market will bear.
b. produces crops with genetically modified organisms.
c. puts children to work whenever possible.
d. uses environmentally sustainable farming methods.
CHAPTER 22—INSIGHT INTO ETHICS:
WARNING LABELS FOR VIDEO GAMES
A2. Iowa enacts a statute that requires a label on a video game to warn parents when
“the range of options available to a player include killing and maiming the image of a
human being.” Gamemakers file a suit against the state to block the statute’s
enforcement. Based on the decision of a California court in a case involving a similar
statute, the court in this case is most likely to rule that the statute
a. extends restrictions on sex-based content to violence in video games.
b. violates the First Amendment’s guarantee of freedom of speech.
c. imposes market-share liability on makers of violent video games.
d. replaces the voluntary rating system currently in use.
CHAPTER 23—SHIFTING LEGAL PRIORITIES FOR BUSINESS:
THE NATIONAL EXPORT INITIATIVE
A3. Catalyst Corporation is a small, U.S.-based business that makes sophisticated
polymers for export. Under the National Export Initiative, the federal government is
a. erecting barriers to deny free access to foreign markets.
b. boosting lending to small businesses, especially for export purposes.
c. placing less emphasis on exports than other governments.
d. playing a less active role in promoting exports in emerging markets.
UNIT FOUR—FOCUS ON ETHICS:
DOMESTIC AND INTERNATIONAL SALES AND LEASE CONTRACTS
A4. U.S. Oil Company and Vehicle Fuel Corporation enter into a contract for the sale of
refined oil. Either party’s nonperformance may be excused, because of unforeseen
circumstances, under the doctrine of commercial
a. good faith.
b. impracticability.
c. square dealing.
d. unconscionability.
A5. Fast Food Corporation and Giant Potatoes, Inc., enter into a contract for Giant’s sale
to Fast of all of the potatoes that Fast needs. The amount of potatoes that Giant must
supply is
a. all of Fast’s requirements that may occur in good faith.
b. all of Giant’s output that is not commercially impracticable.
c. the greatest quantity that is not unconscionable.
d. the greatest quantity that makes the contract a “square deal.”