BUSINESS LAW CHAPTERS 1–7 STUDY
GUIDE 2026 EDITION COMPREHENSIVE
REVIEW, COMPREHENSION QUESTIONS,
CASE-BASED PRACTICE TESTS, DETAILED
ANSWER EXPLANATIONS AND EXAM
PREPARATION RESOURCE
Market Power - CORRECT ANSWER -the ability to control price and exclude
competitors
Price Fixing - CORRECT ANSWER -competitors and everyone starts using
the same pricing scheme -- everyone's price will be the same
Class Action Law Suit - CORRECT ANSWER -group of people all damaged by
a monopoly -- allows law suits that normally wouldn't happen to happen
Civil Remedies - CORRECT ANSWER -injunction to stop unlawful practices -
- the court is asked to make someone do/not do something
Administrative Agencies - CORRECT ANSWER -government body charged
with administering and implementing legislation
, Enabling Act - CORRECT ANSWER -establish government agencies to carry
out specific government policies
Administrative Procedures Act - CORRECT ANSWER -federal law that
establishes the operating rules for administrative agencies
Arbitrary and Capricious - CORRECT ANSWER -When an agency changes it
prior decisions and customary actions, it must give reason. If the findings
are different than the reason given, the court will find the actions of the
agency to be arbitrary and capricious
Organization of Petroleum Exporting Countries (OPEC) - CORRECT
ANSWER -main goal is to raise the taxes and royalties earned from crude oil
production -- Take control of the production
European Union - CORRECT ANSWER -created to remove trade and
economic barriers between member countries and to unify their economic
policies
The United Nations Convention of Contracts for the International Sale of
Goods (CISG) - CORRECT ANSWER -set uniform rules to govern
international sales contracts -- based on the UCC
Export Sales: direct sale to customers in a foreign country
Agent: person/firm authorized to make contracts with third persons
Principal: person/firm that is liable for the third person
GUIDE 2026 EDITION COMPREHENSIVE
REVIEW, COMPREHENSION QUESTIONS,
CASE-BASED PRACTICE TESTS, DETAILED
ANSWER EXPLANATIONS AND EXAM
PREPARATION RESOURCE
Market Power - CORRECT ANSWER -the ability to control price and exclude
competitors
Price Fixing - CORRECT ANSWER -competitors and everyone starts using
the same pricing scheme -- everyone's price will be the same
Class Action Law Suit - CORRECT ANSWER -group of people all damaged by
a monopoly -- allows law suits that normally wouldn't happen to happen
Civil Remedies - CORRECT ANSWER -injunction to stop unlawful practices -
- the court is asked to make someone do/not do something
Administrative Agencies - CORRECT ANSWER -government body charged
with administering and implementing legislation
, Enabling Act - CORRECT ANSWER -establish government agencies to carry
out specific government policies
Administrative Procedures Act - CORRECT ANSWER -federal law that
establishes the operating rules for administrative agencies
Arbitrary and Capricious - CORRECT ANSWER -When an agency changes it
prior decisions and customary actions, it must give reason. If the findings
are different than the reason given, the court will find the actions of the
agency to be arbitrary and capricious
Organization of Petroleum Exporting Countries (OPEC) - CORRECT
ANSWER -main goal is to raise the taxes and royalties earned from crude oil
production -- Take control of the production
European Union - CORRECT ANSWER -created to remove trade and
economic barriers between member countries and to unify their economic
policies
The United Nations Convention of Contracts for the International Sale of
Goods (CISG) - CORRECT ANSWER -set uniform rules to govern
international sales contracts -- based on the UCC
Export Sales: direct sale to customers in a foreign country
Agent: person/firm authorized to make contracts with third persons
Principal: person/firm that is liable for the third person
