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114. The Nutrition Labeling and Education Act of 1990 requires truthful and uniform nutritional
labeling on all food the FDA regulates.
115. Requiring a retailer to carry Performance Tires in order to sell Performance Batteries is
prohibited by the Robinson-Patman Act.
116. The intent of the Sherman Antitrust Act of 1890 was to encourage the growth of large
business organizations in the U.S. in order to compete with more established firms in Europe.
117. When a local restaurant offers a discount to senior citizens, they have violated the price
discrimination provisions of the Robinson-Patman Act.
118. An interlocking directorate occurs when a contract between a retailer and a wholesaler
requires misleading advertising.
119. Traditionally, taxes have been used as a source of funding for government operations and
programs.
120. Taxes have been used as a method of encouraging or discouraging taxpayers from doing
something.
121. The federal government can levy a sin tax in an effort to encourage businesses to hire new
employees.
122. A tax credit is a document that increases a tax bill.
123. Income taxes include taxes paid on real and personal property.
124. Sales taxes are the largest source of tax income received by the federal government.
125. Another name for sin tax is excise tax.
126. Real property is real estate owned by individuals and businesses.
127. Money collected from excise taxes goes toward a specific purpose.
128. The primary objective of a sin tax is to generate additional revenue for the government.
129. The primary objective of a tax credit is to encourage businesses to behave in certain
ways. One example is offering a tax credit to automobile manufacturers for the purchase of
robotics used in the manufacture of automobiles.
130. The European Union currently levies certain Internet taxes.
131. Carlos has had a very successful year. His small corporation earned over $500,000. His
company will have to pay part of its income to the federal government for income taxes.
132. Brian and Sondra own a very successful Cajun restaurant. They recently built their own
building and own all of the decorations in the restaurant, along with the equipment needed to run
the business. They will pay real property taxes on the building and land and personal property
taxes on the decorations and equipment.
133. Bankruptcy is the legal process by which a person, business, or government entity that is
unable to meet financial obligations is relieved of those debts by a court.
134. A bankruptcy allows creditors to get at least part of their money when there are assets
available to divide among the creditors.
135. The Constitution gives the judiciary the power to establish bankruptcy laws.
136. The Bankruptcy Reform Act of 2005 made it easier for individuals to eliminate most debts
in a bankruptcy.
137. The number of Americans filing for bankruptcy has increased tremendously since the late
1980s.
138. Though high-profile business bankruptcies such as Borders and Blockbuster dominate the
news, over 90 percent of bankruptcy filings each year are by individuals.
139. In voluntary bankruptcy cases the creditors voluntarily start legal action against the
debtor.
140. Most bankruptcies today are involuntary because creditors want to retrieve as much of
their money as possible.
141. Chapter 7 bankruptcy requires the sale of the nonexempt assets of debtors.
142. The most popular form of bankruptcy among individuals is Chapter 11.
143. Chapter 11 bankruptcy is a way for sick companies to recover and is designed to help both
debtors and creditors find the best solution.
144. Filing for bankruptcy under the Chapter 11 provisions allows a company to reorganize and
continue operations while paying only a proportion of its debts.
145. A company has to be insolvent before it can file for Chapter 11 bankruptcy.
146. Chapter 13 bankruptcy permits individuals and small-business owners to repay creditors
over a period of three to five years.
147. Chapter 13 proceedings are more complicated than Chapter 7 bankruptcy proceedings.
148. The number of Americans filing for bankruptcy has decreased as a result of the
Bankruptcy Reform Act.
149. When Sam and Marie got married they wanted to travel, buy nice houses and cars, and
enjoy the good life. They used credit cards to finance their lifestyle, believing they would be fine
as long as they could make the minimum payments. One day they discovered that because of
rising interest rates, even the minimum payments were out of reach. They decided to declare
Chapter 13 bankruptcy. Under this plan, they will have to pay their creditors back over 3 to 5
years.
150. The purpose of governmental deregulation is to eliminate laws that seem to hinder
competition.
151. Both the airline and telecommunications industries have been deregulated.
152. Deregulation has always benefited consumers.
153. It appears that some regulation of business is necessary to ensure fair and honest
dealings with the public.
154. Business and government do not need to work together to create a competitive
environment that is fair and open since global competition is increasing.
155. When the airline industry was deregulated in 1980 consumers benefited because airlines
established new routes and charged lower fares.
156. The branch of the government responsible for overseeing the legal system is the:
157. __________ refers to rules, statutes, codes, and regulations established to provide a legal
framework within which business may be conducted.
158. The regulation of marriages and payments for personal injuries is covered by:
159. __________ law establishes punishments, and regulates the investigation of people
accused of committing crimes.
160. The body of law created by court decisions rendered by judges is called __________ law.
161. Which of the following can review and, when necessary, overturn decisions made at the
trial court level?
162. Common law relies on decisions made by judges in previous cases. These earlier
decisions are called:
163. While the government regulates business activities, businesses would prefer to set their
own standards of behavior. Which of the following is the most likely reason the government has
intervened?
