, 20 Questions for Appendix C: Business Law, Regulation, & Tax
MULTIPLE CHOICE
All-City Sports Equipment, Inc.
Juju Foster, owner of All-City Sports Equipment, has a long-term business relationship with Haskins
Manufacturing. The relationship has always been professional, amicable, and has benefited both sides.
Recently, Haskins Manufacturing has brought in a new CEO as well as two new board members of its
publicly-traded corporation. These new changes are beginning to worry Juju as it appears that not only the
relationship but also the business terms and potential future contracts are also about to change. Juju is
keeping an open mind about what the future relationship will look like but is also willing to consider her
own options.
1. Refer to All-City Sports. If Juan, Haskins Manufacturing’s sales rep that Juju works with, presents a
requirement that All-City Sports purchase “all” softball equipment only from Haskins to get a “special”
price discount, Juju would be entering into a(n)
a. binding contract.
b. tying agreement.
c. interlocking directorate.
d. community of interests.
e. FTC violation.
ANS: A PTS: 1 DIF: Difficulty: Moderate
REF: p. E-12 NAT: BUSPROG: Analytic TOP: Scenario Questions
KEY: Bloom's: Application
2. Refer to All-City Sports. Juju has heard that Haskins Manufacturing has added two new board members
to its board of directors. She has not yet heard who those members are. If, through connections or by
chance, either of those new members are also members of Sports NW, a competitor of Haskins
Manufacturing, they would be in violation of the ___ Act.
a. Federal Trade Commission.
b. Robinson-Patman.
c. Clayton.
d. Antitrust Improvements
e. Celler-Kefauver
ANS: C PTS: 1 DIF: Difficulty: Moderate
REF: p. E-12 NAT: BUSPROG: Analytic TOP: Scenario Questions
KEY: Bloom's: Application
3. Refer to All-City Sports. Juju has heard that recently Haskins Manufacturing has begun charging firms
larger than her All-City Sports firm a lower price for baseball, softball, and soccer equipment. Her firm is
essentially paying a higher price for the same goods. This practice is called
a. deceptive pricing.
b. a community of interests.
c. a tying agreement.
d. price fixing.
e. price discrimination.
ANS: E PTS: 1 DIF: Difficulty: Moderate
, REF: p. E-12 NAT: BUSPROG: Analytic TOP: Scenario Questions
KEY: Bloom's: Application
4. _____ are rules developed by a society to govern the conduct of and relationships among its members.
a. Laws
b. Statutes
c. Regulations
d. Precepts
e. Standards
ANS: A PTS: 1 DIF: Difficulty: Easy
REF: p. E-1 NAT: BUSPROG: Analytic TOP: Laws and the Courts
KEY: Bloom's: Analysis
5. New York City’s law covering asbestos cleanup in residential and commercial building has been in effect
since 1987. The law requires that no apartment or commercial space be given a building permit for
alterations unless it has been inspected for asbestos. This law would be classified as a(n) ___ law.
a. common
b. jurisdiction
c. constitutional
d. statutory
e. tort
ANS: D PTS: 1 DIF: Difficulty: Moderate
REF: p. E-2 NAT: BUSPROG: Analytic TOP: Laws and the Courts
KEY: Bloom's: Analysis
6. The body of law created by court decisions rendered by judges is called ___ law.
a. statutory
b. administrative
c. business
d. common
e. government
ANS: D PTS: 1 DIF: Difficulty: Moderate
REF: p. E-1 NAT: BUSPROG: Analytic TOP: Laws and the Courts
KEY: Bloom's: Analysis
7. The laws enacted by legislative bodies are called ___ law.
a. statutory
b. administrative
c. business
d. common
e. federal
ANS: A PTS: 1 DIF: Difficulty: Moderate
REF: p. E-1 NAT: BUSPROG: Analytic TOP: Laws and the Courts
KEY: Bloom's: Analysis
8. A statute is a law passed by
a. the U.S. Congress only.
, b. a judge’s decision.
c. a state legislature only.
d. a local government only.
e. the U.S. Congress, a state legislature, or a local government.
ANS: E PTS: 1 DIF: Difficulty: Moderate
REF: p. E-1 NAT: BUSPROG: Analytic TOP: Laws and the Courts
KEY: Bloom's: Analysis
9. ___ laws are the regulations created by government agencies from rules or laws established by legislative
bodies.
a. Common
b. Business
c. Administrative
d. Statutory
e. Private
ANS: C PTS: 1 DIF: Difficulty: Challenging
REF: p. E-2 NAT: BUSPROG: Analytic TOP: Laws and the Courts
KEY: Bloom's: Analysis
10. A violation of public law is commonly considered a
a. tort.
b. crime.
c. misdeed.
d. malfeasance
e. felony.
ANS: B PTS: 1 DIF: Difficulty: Moderate
REF: p. E-2 NAT: BUSPROG: Analytic TOP: Laws and the Courts
KEY: Bloom's: Analysis
11. An agreement resulting from the activities of the parties rather than from specific promises is called a(n)
a. guarantee.
b. endorsement.
c. express contract.
d. trust.
e. implied contract.
ANS: E PTS: 1 DIF: Difficulty: Moderate
REF: p. E-4 NAT: BUSPROG: Analytic TOP: Contract Law
KEY: Bloom's: Analysis
12. All of the following are examples of real property except a(n)
a. house.
b. automobile.
c. water well.
d. garage.
e. factory.
ANS: B PTS: 1 DIF: Difficulty: Moderate
REF: p. E-7 NAT: BUSPROG: Analytic
MULTIPLE CHOICE
All-City Sports Equipment, Inc.
Juju Foster, owner of All-City Sports Equipment, has a long-term business relationship with Haskins
Manufacturing. The relationship has always been professional, amicable, and has benefited both sides.
Recently, Haskins Manufacturing has brought in a new CEO as well as two new board members of its
publicly-traded corporation. These new changes are beginning to worry Juju as it appears that not only the
relationship but also the business terms and potential future contracts are also about to change. Juju is
keeping an open mind about what the future relationship will look like but is also willing to consider her
own options.
1. Refer to All-City Sports. If Juan, Haskins Manufacturing’s sales rep that Juju works with, presents a
requirement that All-City Sports purchase “all” softball equipment only from Haskins to get a “special”
price discount, Juju would be entering into a(n)
a. binding contract.
b. tying agreement.
c. interlocking directorate.
d. community of interests.
e. FTC violation.
ANS: A PTS: 1 DIF: Difficulty: Moderate
REF: p. E-12 NAT: BUSPROG: Analytic TOP: Scenario Questions
KEY: Bloom's: Application
2. Refer to All-City Sports. Juju has heard that Haskins Manufacturing has added two new board members
to its board of directors. She has not yet heard who those members are. If, through connections or by
chance, either of those new members are also members of Sports NW, a competitor of Haskins
Manufacturing, they would be in violation of the ___ Act.
a. Federal Trade Commission.
b. Robinson-Patman.
c. Clayton.
d. Antitrust Improvements
e. Celler-Kefauver
ANS: C PTS: 1 DIF: Difficulty: Moderate
REF: p. E-12 NAT: BUSPROG: Analytic TOP: Scenario Questions
KEY: Bloom's: Application
3. Refer to All-City Sports. Juju has heard that recently Haskins Manufacturing has begun charging firms
larger than her All-City Sports firm a lower price for baseball, softball, and soccer equipment. Her firm is
essentially paying a higher price for the same goods. This practice is called
a. deceptive pricing.
b. a community of interests.
c. a tying agreement.
d. price fixing.
e. price discrimination.
ANS: E PTS: 1 DIF: Difficulty: Moderate
, REF: p. E-12 NAT: BUSPROG: Analytic TOP: Scenario Questions
KEY: Bloom's: Application
4. _____ are rules developed by a society to govern the conduct of and relationships among its members.
a. Laws
b. Statutes
c. Regulations
d. Precepts
e. Standards
ANS: A PTS: 1 DIF: Difficulty: Easy
REF: p. E-1 NAT: BUSPROG: Analytic TOP: Laws and the Courts
KEY: Bloom's: Analysis
5. New York City’s law covering asbestos cleanup in residential and commercial building has been in effect
since 1987. The law requires that no apartment or commercial space be given a building permit for
alterations unless it has been inspected for asbestos. This law would be classified as a(n) ___ law.
a. common
b. jurisdiction
c. constitutional
d. statutory
e. tort
ANS: D PTS: 1 DIF: Difficulty: Moderate
REF: p. E-2 NAT: BUSPROG: Analytic TOP: Laws and the Courts
KEY: Bloom's: Analysis
6. The body of law created by court decisions rendered by judges is called ___ law.
a. statutory
b. administrative
c. business
d. common
e. government
ANS: D PTS: 1 DIF: Difficulty: Moderate
REF: p. E-1 NAT: BUSPROG: Analytic TOP: Laws and the Courts
KEY: Bloom's: Analysis
7. The laws enacted by legislative bodies are called ___ law.
a. statutory
b. administrative
c. business
d. common
e. federal
ANS: A PTS: 1 DIF: Difficulty: Moderate
REF: p. E-1 NAT: BUSPROG: Analytic TOP: Laws and the Courts
KEY: Bloom's: Analysis
8. A statute is a law passed by
a. the U.S. Congress only.
, b. a judge’s decision.
c. a state legislature only.
d. a local government only.
e. the U.S. Congress, a state legislature, or a local government.
ANS: E PTS: 1 DIF: Difficulty: Moderate
REF: p. E-1 NAT: BUSPROG: Analytic TOP: Laws and the Courts
KEY: Bloom's: Analysis
9. ___ laws are the regulations created by government agencies from rules or laws established by legislative
bodies.
a. Common
b. Business
c. Administrative
d. Statutory
e. Private
ANS: C PTS: 1 DIF: Difficulty: Challenging
REF: p. E-2 NAT: BUSPROG: Analytic TOP: Laws and the Courts
KEY: Bloom's: Analysis
10. A violation of public law is commonly considered a
a. tort.
b. crime.
c. misdeed.
d. malfeasance
e. felony.
ANS: B PTS: 1 DIF: Difficulty: Moderate
REF: p. E-2 NAT: BUSPROG: Analytic TOP: Laws and the Courts
KEY: Bloom's: Analysis
11. An agreement resulting from the activities of the parties rather than from specific promises is called a(n)
a. guarantee.
b. endorsement.
c. express contract.
d. trust.
e. implied contract.
ANS: E PTS: 1 DIF: Difficulty: Moderate
REF: p. E-4 NAT: BUSPROG: Analytic TOP: Contract Law
KEY: Bloom's: Analysis
12. All of the following are examples of real property except a(n)
a. house.
b. automobile.
c. water well.
d. garage.
e. factory.
ANS: B PTS: 1 DIF: Difficulty: Moderate
REF: p. E-7 NAT: BUSPROG: Analytic
