Business Law Chapter 5

Which is not one of the goals of the Consumer Product Safety Act (CPSA)? to help consumers evaluate problems to reduce injuries through research and investigation into their causes to impose federal regulations on states and local governments to develop uniform safety standards

To impose federal regulations on states and local governments

Companies and individuals that violate federal consumer or environmental protection laws face the possibility of these forms of punishment except _____. civil penalties criminal penalties jail time extradition to another state

extradition to another state

The Consumer Product Safety Commission (CPSC) does not _____. represent an independent regulatory commission have seven commissioners appoint its commissioners for seven-year terms ensure that products have adequate warnings and instructions

have seven commissioners

The "Superfund" or CERCLA did not _____. impose liability on wrongdoers provide for a voluntary tax to be paid by concerned citizens create a tax for the chemical and petroleum industries contribute the money collected to a trust fund for hazardous waste site cleanup

provide for a voluntary tax to be paid by concerned citizens

Career opportunities in the legal profession exist in both the private and public sectors. True False

True

Under the Consumer Protection Safety Act (CPSA), a corporation's director, officer, or agent can be held liable if _____. he or she acted knowingly and willfully he or she authorized, ordered or performed the action in question he or she acted in violation of Section 2068 of the CPSA all of the above

All of the above

Which of the following are career opportunities in the legal industry? corporate lawyer legal researcher mediator all of the above

All of the above

Which of the following is an alternative to bankruptcy that is completed in the state court, rather than the federal court? Out-of-Court Workout Assignment of Benefit for Creditors (ABC) Chapter 7 Chapter 11

Assignment of Benefit for Creditors (ABC)

Which proceeding uses an Assignee that is chosen by the debtor rather than a Trustee? Out-of-Court Workout Assignment of Benefit for Creditors (ABC) Chapter 7 Chapter 11

Assignment of Benefit for Creditors (ABC)

In addition to penalties, a business or individual who has violated a consumer protection law cannot be _____. enjoined from selling or distributing the product restrained from manufacturing or importing the product have his or her goods seized automatically sentenced to jail

Automatically sentenced to jail

Choose the option that best matches the description given. It has a Trustee who is employed by the court to administer and distribute the business's assets to its creditors, after which, the business's debts are discharged completely. Out-of-Court Workout Assignment of Benefit for Creditors (ABC) Chapter 7 Chapter 11

Chapter 7

Chemicals and hazardous substances controlled by the Toxic Substances Control Act (TSCA) include all of the following except _____. bisphenate polychlorinated biphenyls asbestos radon

Bisphenate

Which proceeding guarantees that a business can keep its inventory, supplies and equipment, and repay its creditors from future earnings of the business? Out-of-Court Workout Assignment of Benefit for Creditors (ABC) Chapter 7 Chapter 11

Chapter 11

Choose the option that best matches the description given. It has a committee of creditors that is comprised of seven, key unsecured creditors. Out-of-Court Workout Assignment of Benefit for Creditors (ABC) Chapter 7 Chapter 11

Chapter 11

______ arbitration clauses include details as to where the arbitration will take place, who will arbitrate, who will pay particular fees, and whether the arbitration will be voluntary or mandatory.

Complicated

A company can have a mandatory arbitration clause in its employment contract. True False

True

Which is not one of the functions of the Bureau of Consumer Protection (BCP)? conducts investigations educates consumers and businesses sues companies and people violating consumer laws takes over consumer-fraud and identity-theft complaints from law enforcement

Educates consumers and businesses

If an attorney requests a percentage of the damages awarded his client, this fee arrangement represents a service fee. True False

False

If an employee has signed an employment agreement that has a mandatory arbitration clause, he or she can pursue litigation if a dispute arises with his or her employer. True False

False

Matters discussed during mediation are a matter of public record. True False

False

Mediation agreements are informal and nonbinding on both parties. True False

False

The Federal Trade Commission (FTC) can do all of the following except _____. prevent all unfavorable advertising prevent unfair business practices seek monetary compensation for injured consumers prescribe trade regulation rules

Prevent all unfavorable advertising

The Consumer Products Safety Improvement Act of 2008 does all of the following except _____. protect "whistleblowers" who file complaints against their companies authorize state attorney general to bring civil actions on behalf of residents for injunctive relief relax the guidelines for infant products and children's toys increase the amount of civil fines

Relax the guidelines for infant products and children's toys

A settlement occurs when both sides agree on a resolution either on their own, with the assistance of their attorneys or neutral parties, or through mediation. True False

True

Even after litigation has begun, the parties can consider settlement to reach a nonlitigious resolution. True False

True

"Brown fields" are all but the following _____. undeveloped and pristine fields with brown wild grasses real property sites considered for redevelopment, reuse, or expansion contaminated or perceived to be contaminated with hazardous substances and pollutants

undeveloped and pristine fields with brown wild grasses

What is the final stage of the mediation process? Opening statements are made by each of the parties. A resolution is reached and each party signs an agreement. The mediator describes the goals and rules of the mediation. The parties negotiate directly with one another.

A resolution is reached and each party signs an agreement.

Disputes pertaining to ______ can be mediated. contracts residential leases child custody all of the above

All of the above

Which procedure makes the creditors cram down the repayment terms, even if they are unfavorable? Out-of-Court Workout Assignment of Benefit for Creditors (ABC) Chapter 7 Chapter 11

Chapter 11

Which procedure allows a business to cease all operations when it is complete? Out-of-Court Workout Assignment of Benefit for Creditors (ABC) Chapter 7 Chapter 11

Chapter 7

Which of the following is not a consumer-protection or advocacy organization? Kids in Danger (KID) Center for Science in the Public Interest (CSPI) Consumers Together (CT) Consumer Federation of America (CFA)

Consumers Together (CT)

A settlement letter requests payment for a matter in dispute. True False

False

Alternative dispute resolution (ADR) takes more time and is more expensive than litigation. True False

False

Sneed recently reassigned existing employees to other duties. Reese and a female coworker, Judy, both salaried workers, were reassigned from administrative to cashier positions, because Sneed felt that attractive women would be more people-friendly as cashiers than men. Rex, in turn, is an hourly employee without an employment contract, and he was reassigned from a cashier to a record-keeping position in the back room. If the arbitrator makes his decision against Reese following the arbitration, she can appeal. True False

False

What is the first step in the arbitration process? Arbitrator Selection Preliminary Hearing Filing and Submission Post-Hearing Submissions

Filing and Submission

Choose the option that best matches the description given. This alternative to bankruptcy may include an offer to the creditors for them to receive all or a portion of their balance paid in full over a period of time, in exchange for forbearance from collection activities against the business. Out-of-Court Workout Assignment of Benefit for Creditors (ABC) Chapter 7 Chapter 11

Out-of-Court Workout

The arbitrator is usually a retired judge or

Practicing attorney

The Clean Air Act (CAA) of 1970 did all of the following except _____. establish the National Ambient Air Quality Standards (NAAQS) reduce the federal government's enforcement authority introduce motor vehicle emissions controls create State Improvement Plans (SIP) to promote better air quality

Reduce the federal government's enforcement authority

During 1970, the "year of the environment," all of the following occurred except _____. the National Oceanic Atmospheric Administration (NOAA) was founded the Clean Water Act was enacted the Environmental Protection Agency (EPA) was founded the Clean Air Act was enacted

The Clean Water Act was enacted

An adversarial legal system allows the two opposing sides to present their arguments and witnesses before an impartial judge or jury. True False

True

An hourly employee without an employment contract can file a civil claim in court against his or her employer if a dispute arises. True False

True

Gabel has not paid his rent for two months. His landlord, Chuck, sent him a notice that if he did not receive at least one month's back rent along with the next month's rent within fourteen days, Chuck would pursue legal action against Gabel. Fifteen days have passed, and Chuck never heard from Gabel. He decides to try out alternative dispute resolution (ADR), which he's been reading a lot about lately, and schedules a mediation with Gabel, who he had considered a good tenant before he stopped paying rent a couple of months ago. This is a good idea. True False

True

Mediation and arbitration are methods of Alternative Dispute Resolution (ADR). True False

True

Small-claims court represents an inexpensive alternative to pursuing resolution rather than an expensive trial. True False

True

The mediator has no decision-making role in mediation. True False

True

Troy lives in a mixed-use zoning neighborhood, promoted as an "up and coming" area for artistic types and young professionals. He purchased a building about six months ago and built a restaurant, Troy's BBQ, on the bottom floor and lives in the two upper floors. Troy's hip and happening establishment has become a local sensation. Unfortunately, residents of the condominium complex next door are not too happy with the loud late-night scene, and the condo association is threatening to sue Troy for violating local noise ordinances, since his actions represent a nuisance that interfere with the quiet use and enjoyment of their property. Troy's best option would be to schedule mediation. True False

True

Citizen suits allow an individual to do all of the following except _____. force the party in violation of the law to comply with it bring a lawsuit against a company or business for violating an environmental regulation prevent the citizen from bringing a lawsuit against the Environmental Protection Agency (EPA) force the party in violation of the law to pay civil penalties

prevent the citizen from bringing a lawsuit against the Environmental Protection Agency (EPA)

The Environmental Protection Agency's (EPA) Construction Grants Program did not _____. help build wastewater treatment plants help construct pumping stations replace the Clean Water State Revolving Fund (CWSRF) help build sewer treatment plants

replace the Clean Water State Revolving Fund (CWSRF)

The Clean Water Act (CWA) of 1972 did all of the following except _____. set water-quality standards take over the EPA's authority to impose pollution control programs regulate pollutants discharged into US waters not permit pollutants to be discharged from pipes or man-made ditches into navigable waters

take over the EPA's authority to impose pollution control programs