Title: Legal Environment
Course: Demo 1

Q: ________ is a system of laws under which the people and the government are bound, which allows predictability and restraint of government action.
- Common law
- Equal protection
- Rule of law
A: Rule of law

Q: In the U.S., the rule of law was originally defined by:
- the U.S. Supreme Court
- Congress
- the Founding Fathers of the country
A: the Founding Fathers of the country

Q: ________ must be obeyed and followed by citizens, subject to sanctions or legal consequences.
- moral standards
- social justice
- law
A: law

Q: ________ defines who has the right to govern and which sources of law are legitimate.
- Common law
- The judicial branch
- Rule of law
A: Rule of law

Q: In the U.S. Constitution power is derived from:
- religious authority
- Congress
- the people
A: the people

Q: The U.S. system of governance is one of federalism, which:
- creates the economic structure for the Federal Reserve Bank
- places all authority in the federal government
- allows for different rule of law at the national and state levels
A: allows for different rule of law at the national and state levels

Q: The foundation for the rule of law system in the United States is the:
- Federalist papers.
- Declaration of Independence.
- Constitution.
A: Constitution.

Q: Should state laws and federal laws conflict,:
- federal courts must determine which law will be honored
- the legislative branch will determine which law will be honored
- state courts must honor federal law
A: state courts must honor federal law

Q: In a criminal law case, the defendant can be a(n):
- individual
- organization
- business
A: individual; organization; business

Q: In a criminal law case, the plaintiff is:
- an individual acting on his or her own behalf
- a business
- acting on behalf of society
A: acting on behalf of society

Q: A tort:
- is a wrong for which the law will provide a remedy
- often is remedied through payment of monetary damages
- covers the full scope of both legal and moral wrongs
A: is a wrong for which the law will provide a remedy; often is remedied through payment of monetary damages

Q: Examples of tort suits are a(n):
- tenant who damages a landlord’s property
- individual injured in her workplace
- individual who is arrested by the police for shoplifting
A: tenant who damages a landlord’s property; individual injured in her workplace

Q: The law of torts developed almost entirely in the common-law courts, meaning:
- rules are created through rulings in other court cases
- the nuances of contracts willingly created by parties can be considered
- the laws were wholly created by the legislature
A: rules are created through rulings in other court cases; the nuances of contracts willingly created by parties can be considered

Q: An individual is driving under the influence of alcohol and causes a car accident that results in the death of another motorist. This case could be tried as:
- a criminal case seeking a conviction and jail time
- a civil case seeking monetary damages
- neither a civil nor a criminal case
A: a criminal case seeking a conviction and jail time; a civil case seeking monetary damages

Q: At the end of a night partying, an inebriated customer hits the bartender because the bartender refuses to serve him another drink. Who is responsible for the intentional tort in this situation?
- The bartender.
- The bystanders who saw the incident.
- The inebriated customer.
A: The inebriated customer.

Q: After mopping up a spill, store employees forget to put "Caution: Wet Floor" signs in the area. Soon afterwards, a shopper slips on the wet floor and injures herself. This is an example of:
- strict liability
- intentional tort
- negligence tort
A: negligence tort

Q: Intellectual property law governs the protection of:
- physical possessions
- financial possessions
- ideas
A: ideas

Q: ________ awards the inventor with the exclusive right to make and sell an invention for a period of time.
- Copyright
- Trademark
- Patent
A: Patent

Q: ________ grants the right to exclude others from using or marketing forms of expression.
- Patent
- Trademark
- Copyright
A: Copyright

Q: ________ provides the right to prevent others from using a company’s product name or logo.
- Patent
- Copyright
- Trademark
A: Trademark

Q: A young author writes a novel that is based on the story of Harry Potter, including Harry and several of the other characters in his new story. This is an example of a:
- trademark violation
- legal and correct use
- copyright infringement
A: copyright infringement

Q: An independent designer creates a t-shirt that encourages struggling students to “Just Do It,” mimicking Nike’s slogan. This is an example of a:
- copyright infringement.
- patent violation.
- trademark violation.
A: trademark violation.

Q: A programmer hacks software code to understand how it works. Then she writes a program that replicates the implementation of a solution that has already been granted intellectual property protection. This is an example of a:
- trademark violation
- copyright infringement
- patent violation
A: patent violation

Q: Intellectual property is intangible. How would you best describe its value to businesses?
- It can be valued, but does not ever provide significant value.
- It cannot be valued because it is not a physical asset.
- It can be a company’s most significant asset.
A: It can be a company’s most significant asset.

Q: A contract is:
- a written agreement that is signed and notarized by both parties.
- copyright violation.
- an agreement that is enforceable by law.
A: an agreement that is enforceable by law.

Q: A contract is a promise between two parties. However, in order for the contract to be legally enforceable it must meet certain criteria, such as:
- the parties must agree to exchange something of value.
- there must have been an offer by one party and then the acceptance of that offer by the other party.
- it must be written down and then witnessed by a third party.
A: the parties must agree to exchange something of value.; there must have been an offer by one party and then the acceptance of that offer by the other party.

Q: Kate and Felice have come to an agreement. Kate will sell Felice a specific number of her prescription pills for a set dollar amount. This is not a legal contract because it fails to meet which requirement(s) of a contract:
- agreement
- consideration
- lawful object
A: lawful object

Q: Antoine and David are 12 years old when they agree that if either one of them ever earns more than $200,000 in one year he will buy the other one a new car. After college, Antoine starts a company that provides transportation to senior citizens who cannot drive. When David reads in the newspaper that Antione’s business has been purchased by a healthcare provider for $5 million, David believes that he is owed a new car. The agreement for the new car between Antoine and David was not a legal contract because it fails to meet which requirement(s) of a contract:
- agreement.
- lawful object.
- contractual capacity.
A: contractual capacity.

Q: One Saturday morning, a group of neighbors got together to hold a yard sale in a nearby church parking lot. They paid nothing to use the lot, and in fact the church pastor and other leaders were unaware that the lot was being used for this purpose. A woman attending the yard sale injured herself when she tripped on a concrete stop in the parking lot, and she decided to sue the church for damages. However, the church was not liable because this situation fails to meet which requirements of a contract?
- agreement
- consideration
- lawful object
A: agreement; consideration

Q: The ________ in a contract describe what the parties commit to do or not do.
- representations
- conditions
- covenants
A: covenants

Q: The ________ in a contract explain what one party will do IF the other party completes specific actions.
- representations
- covenants
- conditions
A: conditions

Q: The ________ in a contract are statements that one of the parties knows to be true at the time of the contract.
- covenants
- conditions
- representations
A: representations

Q: “Individual shall pay agent 2% of the sales price of the item.” This is an example of a:
- warranty.
- condition.
- covenant.
A: covenant.

Q: "Buyer agrees to pay purchase price in full if item passes inspection by a designated expert." This is an example of a:
- covenant.
- warranty.
- condition.
A: condition.

Q: "Lessor acknowledges that refrigerator in garage is not operational." This is an example of a:
- covenant.
- condition.
- representation.
A: representation.

Q: Negligence, or carelessness, can be claimed if:
- the manufacturer fails to warn the consumer of risks.
- the design of the product is flawed, creating risk.
- a product does not meet legal standards.
A: the manufacturer fails to warn the consumer of risks.; the design of the product is flawed, creating risk.; a product does not meet legal standards.

Q: In cases of strict liability:
- a manufacturer’s responsibility ends when it delivers its product to a reseller.
- a manufacturer’s responsibility ends if a product becomes defective after it is sold.
- the law provides some form of constant protection to consumers.
A: the law provides some form of constant protection to consumers.

Q: Many products contain a warning that reads, “Choking hazard, small parts, not for use by children under three-years old.” Such warnings are focused on avoiding cases of:
- warranty.
- strict liability.
- negligence.
A: negligence.

Q: Most medicine packaging includes a warning that reads, "Do not operate heavy machinery while using this medication." Such warnings are focused on avoiding cases of:
- warranty.
- strict liability.
- negligence.
A: negligence.

Q: Negligence per se occurs specifically in cases where:
- the manufacturer fails to warn the consumer of risks.
- the design of the product is flawed, creating risk.
- a product does not meet legal standards.
A: a product does not meet legal standards.

Q: Which of the following must be proven in a case of negligence between a manufacturer and a consumer?
- The manufacturer owes the consumer a duty of care.
- The manufacturer breached the duty of care.
- The consumer’s action caused the injury.
A: The manufacturer owes the consumer a duty of care.; The manufacturer breached the duty of care.

Q: Strict liability:
- encourages companies to anticipate and prevent dangerous product uses.
- requires proof of negligence on the part of the manufacturer or seller.
- acknowledges that some products are inherently dangerous.
A: acknowledges that some products are inherently dangerous.

Q: The idea that some products are inherently dangerous is acknowledged by the:
- legal concept of negligence
- implied warranty of merchantability
- legal concept of strict liability
A: legal concept of strict liability

Q: If the wholesaler and retailer both exercise due care, which of the following parties can be held liable in a negligence suit about a defective product?
- the wholesaler
- the retailer
- the manufacturer
A: the manufacturer

Q: In a strict liability suit against a manufacturer, which of the following parties can be held liable?
- The wholesaler regardless of whether she is negligent
- The retailer regardless of whether she is negligent
- Neither of these parties
A: The wholesaler regardless of whether she is negligent; The retailer regardless of whether she is negligent

Q: A ________ is a guarantee that a product meets certain standards of performance.
- contract
- tort
- warranty
A: warranty

Q: One way an ________ is created is when a seller describes a product, implying that the product will meet the description.
- implied warranty of merchantability
- implied warranty of fitness
- express warranty
A: express warranty

Q: Sylvania claims that its lightbulbs, “Last 10 times longer and use 75% less energy than standard bulbs.” This is an example of:
- implied warranty
- product liability
- express warranty
A: express warranty

Q: Sylvania provides lightbulbs that, one might assume, are safe to use and will last for a reasonable period of time. This is an example of:
- express warranty
- product liability
- implied warranty
A: implied warranty

Q: An ________ assures that a product is reasonably fit for ordinary use.
- express warranty
- implied warranty of fitness
- implied warranty of merchantability
A: implied warranty of merchantability

Q: An ________ assures that a product is fit for a specific use that is stated by the manufacturer, wholesaler or reseller.
- express warranty
- implied warranty of merchantability
- implied warranty of fitness
A: implied warranty of fitness

Q: The Targus adjustable monitor is designed to act as an adjustable stand for computer monitors. The reseller specifically states that the stand holds up to 100 pounds. This is an example of:
- implied warranty of merchantability.
- implied warranty of fitness.
- express warranty.
A: express warranty.

Q: Dell’s Rugged Extreme laptop is marketed for use in rugged conditions, including extreme heat and moisture. This is an example of:
- express warranty.
- implied warranty of merchantability.
- implied warranty of fitness.
A: implied warranty of fitness.

Q: CTEK markets its MUS Polar Battery Charger for use in extreme cold conditions. This is an example of:
- express warranty.
- implied warranty of merchantability.
- implied warranty of fitness.
A: implied warranty of fitness.

Q: In marketing the Apple Watch, the company claims, “The incredibly high pixel density makes numbers and texts easy to read at a glance, even while you’re moving. And the display is extremely energy efficient, critical for a device you wear throughout the day.” When considering the performance of the display from a consumer perspective this is an:
- implied warranty of merchantability.
- implied warranty of fitness.
- express warranty.
A: express warranty.

Q: A couple purchased a used Mercedes S320 with 135,945 miles. The used car dealer was also the original owner of the car. After purchasing the car the new owners found that the air conditioning worked intermittently and created a strong odor after 30 minutes of use. In order to create a compelling case of implied warranty, which of the following questions apply?
- Did the dealer tell the couple that the air conditioning had issues?
- Did the dealer market the car as being particularly well matched for warm conditions?
- Did the dealer explicitly state that the car was in perfect condition?
A: Did the dealer tell the couple that the air conditioning had issues?; Did the dealer market the car as being particularly well matched for warm conditions?

Q: ________ damages are intended to compensate a victim, while ________ damages are intended to punish a defendant.
- Punitive : compensatory
- Punitive : litigious
- Compensatory : punitive
A: Compensatory : punitive

Q: Examples of compensatory damages include:
- payment for lost wages.
- payment for mental anguish.
- payment to punish wrongdoing.
A: payment for lost wages.; payment for mental anguish.

Q: Punitive damages may be controversial because they:
- can far exceed actual losses suffered by a victim.
- can be arbitrary or unpredictable based on jury perspectives.
- may have dramatic impact on businesses, including bankruptcy.
A: can far exceed actual losses suffered by a victim.; can be arbitrary or unpredictable based on jury perspectives.; may have dramatic impact on businesses, including bankruptcy.

Q: An individual driving under the influence of alcohol crashes into another car killing the driver, a father, and injuring his wife and child. Compensatory damages may include:
- payment for lost income of the husband.
- payment for depriving the child of her father.
- payment to punish the driver for his poor decision.
A: payment for lost income of the husband.; payment for depriving the child of her father.

Q: A landlord fails to make improvements to keep the balconies of his apartment building at a level of repair that meets the city code. After several warnings from the city, one of the balconies falls and smashes the furniture and barbecue of one of the tenants. Another tenant is near the balcony when it falls but no one sustains physical injuries. Compensatory damages may include:
- payment for damaged property.
- payment for mental suffering.
- a fee for repeated and extreme non-compliance to a city code.
A: payment for damaged property.; payment for mental suffering.