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
B1. Jaime, a cocoa bean farmer in Columbia, forms an alliance with Irwin, an importer and
marketer in the United States. Their products carry a Fair Trade label. This means that
Jaime
a. accepts whatever price for his products that the market will bear.
b. receives a stable minimum price for his products.
c. employs forced labor at a fair price whenever possible.
d. produces crops as cheaply as possible to keep his prices minimal.
CHAPTER 22—INSIGHT INTO ETHICS:
WARNING LABELS FOR VIDEO GAMES
B2. New York enacts a statute that requires a label on a video game to warn parents when
“the range of options available to a player include dismembering or sexually assaulting
the image of a human being.” On appeal from a challenge by gamemakers, the state
asks a federal court to enforce the statute. Based on the decisions of other federal
courts in cases involving similar statutes, the court in this case is most likely to
a. refuse to extend restrictions on sex-based content to violence in video games.
b. expand the label’s warning to include other forms of violence.
c. impose market-share liability on makers of violent video games.
d. replace the voluntary rating system currently in use.
CHAPTER 23—SHIFTING LEGAL PRIORITIES FOR BUSINESS:
THE NATIONAL EXPORT INITIATIVE
B3. A Little Bit of Lipstick, Inc., is a small, U.S.-based business that sells nanotechnology-
based cosmetics for export. Under the National Export Initiative, the federal
government is
a. pursuing trade agreements to improve market access for U.S. firms.
b. banning 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
B4. Precision Parts Company and Quality Manufacturing, Inc., enter into a contract for the
sale of a certain quantity of machine parts. Although not expressly stated, a concept
that is read into this contract is the concept of
a. good faith.
b. impracticability.
c. square dealing.
d. unconscionability.
B5. Sports Line, Inc., and Trudy, a consumer, enter into a contract for a sale of a
snowmobile. If the contract includes a clause that is perceived as grossly unfair to
Trudy, its enforcement may be challenged under the doctrine of
a. good faith.
b. impracticability.
c. square dealing.
d. unconscionability.