Final Exam

A hog farm has expanded with all the appropriate permits from related agencies. Since the expansion, people living within a few miles of the plant are overwhelmed by the smell and noise of the livestock. Assuming the odor and noise does not threaten the residents' safety, what common law claim would best address the citizens' complaints in this scenario? A trespass claim A negligence tort claim A strict liability tort claim A nuisance claim

A nuisance claim Explanation A nuisance claim would best address the citizens' complaints in this scenario. A private nuisance is a substantial and unreasonable invasion of the private use and enjoyment of one's land; a public nuisance is an unreasonable interference with a right common to the public.

Which of the following is a legally separate entity formed under the laws of the host country and substantially owned by the foreign parent company? A subsidiary A branch office A joint venture A distributorship

A subsidiary Explanation A subsidiary is a legally separate entity formed under the laws of the host country and substantially owned by the foreign parent company. On the other hand, a branch office is simply an extension of a foreign corporation into the host country.

Which of the following consumer protection agencies in the United States is charged with protecting us from dishonest practices such as hidden credit card fees and misleading "teaser" rates for mortgages? Consumer Credit Status Agency Consumer Product Safety Commission Consumer Financial Protection Bureau Consumer Honesty in Lending Agency

Consumer Financial Protection Bureau Explanation An important element of the Consumer Financial Protection Bureau's charge is to provide financial education, thereby promoting Americans' financial literacy. Broadly, the Bureau will be expected to prohibit and prevent the commission of "an unfair, deceptive, or abusive act or practice" in conjunction with a consumer financial product or service. It further protects us from a wide array of dishonest practices such as hidden credit card fees and misleading "teaser" rates for mortgages

A trespass occurs when there is any invasion, intentional or unintentional, of an individual's right to the exclusive use of his or her own property. True or False

False Explanation A trespass occurs and liability is imposed on any intentional invasion of an individual's right to the exclusive use of his or her own property. For example, in a 1959 Oregon case, Martin v. Reynolds Metals Co., the plaintiffs successfully sued in trespass for damages caused by the operation of an aluminum reduction plant, which caused certain fluoride compounds in the form of gases and particulates to become airborne, settle on the plaintiffs' land, contaminate their forage and water, and poison their cattle.

The World Trade Organization Dispute Settlement Body (DSB) is a true court. True or False

False Explanation Although the World Trade Organization Dispute Settlement Body (DSB) is not a true court, it is a significant forum for the resolution of international trade disputes between WTO members. The DSB is made up of all member governments, usually represented by ambassadors or the equivalent.

The Clean Water Act clearly states what waters are covered by the act and therefore subject to Environmental Protection Agency regulations. True or False

False Explanation Decades after the enactment of the Clean Water Act (CWA), it remains unclear exactly what waters are actually covered by the act and therefore subject to Environmental Protection Agency regulations. In the 2001, Northern Cook County case, the Supreme Court looked at what qualifies as "navigable waters" for purposes of the CWA. Only a bare majority (five) of the justices agreed with this decision; the remaining four dissented.

Distributors manufacture goods and then negotiate sales to foreign buyers on their own behalf. True or False

False Explanation Distributors purchase goods from the seller, then negotiate sales to foreign buyers on their own behalf. In so doing, a distributor may be more likely to invest resources to develop a foreign market for the goods.

In 2015, when the Federal Communications Commission reclassified Internet service again, it stated that service providers are permitted to block consumer access to legal content that competes with the provider's services. True or False

False Explanation In 2015, the FCC reclassified Internet service once again-this time as a utility-and issued Open Internet rules effective June 2015. For broadband services, the rules prohibited blocking of "lawful content, applications, services, or non-harmful devices," impairing or degrading lawful Internet traffic on the basis of content, applications, services, or nonharmful devices, and disfavoring some lawful Internet traffic over other lawful traffic in exchange for consideration of any kind-in other words, no "fast lanes."

Workers' compensation provides the only remedy available to workers injured on the job. true/false

False Explanation In general, injuries, illnesses, and deaths are compensable where the harm (1) arose out of the employment and (2) occurred in the course of employment (explained next in Wait). Although workers' compensation is generally the exclusive remedy for workplace injury or death caused by employers' negligence, many states recognize an exception for intentional torts. An exception based on gross negligence, however, is rare. Proof of employer negligence is not required, and the traditional defenses such as contributory negligence are not available to the employer. Thus, workers' compensation provides a form of no-fault protection in the workplace.

Under the Fair Labor Standards Act, employers must now pay double time for any work beyond 40 hours per week. True/False

False Explanation Most workers covered under the Fair Labor Standards Act (FLSA) must receive overtime pay of at least 1½ times their regular pay rate for hours worked over 40 hours per week. However, FLSA also recognizes exemptions for certain occupations, such as managers, outside salespersons, administrators, and professionals with advanced degrees.

People and businesses can choose any domain name they want just by telling their Internet service provider that that is how they want to be known. True or False

False Explanation Rights to a domain name are secured simply by being the first to request a name and pay the registration fee. The 1999 Anticybersquatting Consumer Protection Act creates a cause of action if a trademark is infringed by another's registration of a domain name that Web searchers may confuse with that trademark.

Under the Fair Credit Billing Act (FCBA), a credit cardholder who receives an erroneous bill must complain in writing to the creditor within 30 days of the time the bill was mailed. The creditor has 60 days to acknowledge the complaint True or False

False Explanation The Fair Credit Billing Act (FCBA) provides a mechanism to deal with the billing errors that accompany credit card and certain other "open-end" credit transactions. Under the Fair Credit Billing Act, a cardholder who receives an erroneous bill must complain in writing to the creditor within 60 days of the time the bill was mailed. The creditor must acknowledge receipt of the complaint within 30 days.

The International Court of Justice is only made up of judges only from the United Nations Security Council. True or False

False Explanation The International Court of Justice is made up of 15 judges from 15 different member countries. It is the only court devoted entirely to hearing cases of international public law.

The National Pollutant Discharge Elimination System (NPDES) requires all dischargers to secure a permit from their local environmental agency before pouring effluent into a navigable stream. True or False

False Explanation The National Pollutant Discharge Elimination System (NPDES) requires all dischargers to secure a permit, most often from the Environmental Protection Agency, but at times from some other government agency, before pouring effluent into a navigable stream. The permit specifies maximum permissible levels of effluent and typically also mandates the use of a particular pollution control process or device to ensure that level is not exceeded.

The heart of the Truth in Lending Act (TILA) is the required conspicuous disclosure of only the number of payments to be made annually. True or False

False Explanation The Truth in Lending Act (TILA) and Regulation Z interpreting the act were designed both to protect consumers from credit abuse and to assist them in becoming more informed about credit terms and costs, so they could engage in comparison shopping. The heart of the TILA is the required conspicuous disclosure of the amount financed, the finance charge (the actual dollar sum to be paid for credit), the annual percentage rate (APR-the total cost of the credit expressed at an annual rate), and the number of payments.

For a debtor to be protected under the Truth in Lending Act (TILA), the credit obtained must be not more than $25,000 and not for personal, family, or household purposes. True or False

False Explanation The Truth in Lending Act (TILA) is designed primarily to assure full disclosure of credit terms. For a debtor to be protected under the TILA, the purpose of the credit must be "primarily for personal, family, or household purposes" not more than $25,000, but "consumer real property transactions" are covered by the act.

The bulk of the environmental laws and regulations in the United States were drafted to address broad problems created by industrialization. True or False

False Explanation The bulk of the environmental laws and regulations in the United States were drafted to address compartmentalized and discrete issues. They may be inadequate to address the interrelationships that characterize both the environment and the social and political structures.

A contract may be unconscionable merely because one party is spectacularly clever and the other is not. True or False

False Explanation The doctrine of unconscionability emerged from court decisions where jurists concluded that some contracts are so unfair or oppressive as to demand intervention. Mere foolishness or want of knowledge does not constitute grounds for unconscionability, nor is a contract unconscionable and hence unenforceable merely because one party is spectacularly clever and the other is not.

The federal government is primarily responsible for the enforcement of the Clean Water Act. True or False

False Explanation The states have primary responsibility for enforcing the Clean Water Act (CWA), but the Environmental Protection Agency is empowered to assume enforcement authority if necessary. While the CWA has resulted in enormous improvements, but many problems still exist.

Publication is a complete defense in defamation cases. True/False

False Explanation Truth is a complete defense in defamation cases, and managers who offer factual, honest professional judgments are unlikely to face such claims. Further, many state courts provide employers with a qualified privilege, which allows immunity from liability for good faith employment references.

Under the Clean Air Act, only state governments are responsible for setting air quality standards. True or False

False Explanation Under the Clean Air Act, air quality standards are set federally, but the states are required to establish implementation plans to achieve and maintain those standards. In recent years, considerable high-profile litigation over clean air standards has occurred.

The Brownfields Act provides liability protection for owners of brownfield sites. True or False

False Explanation Worried about liability risks, developers were often reluctant to buy and improve brownfield sites. The Brownfields Act provides liability protection for prospective purchasers and contiguous property owners and authorizes increased funding for state and local programs that assess and clean up brownfields.

The Federal Trade Commission (FTC) was created in 1974 to protect consumers regarding all methods of commerce involving the sale of goods which offer a warranty. True or False

False Explanation The Federal Trade Commission (FTC) was created in 1914 to prevent "unfair methods of competition and unfair or deceptive acts or practices in and affecting commerce." The FTC operates as a miniature government with powerful quasi-legislative (rule-making) and quasi-judicial (adjudication) roles.

Which of the following countries is one of the major emerging economies? India South Africa Indonesia Cuba

India Explanation The major emerging economies are Brazil, Russia, India, and China (BRIC). None of these countries are participants of the Transatlantic Trade and Investment Partnership and the Trans-Pacific Partnership.

Identify a true statement about workers' compensation. It covers all self-inflicted on-the-job injuries. It is not the exclusive remedy for workplace injury. It covers the entire labor force. It does not require proof of employer negligence.

It does not require proof of employer negligence. Explanation In general, injuries, illnesses, and deaths are compensable where the harm (1) arose out of the employment and (2) occurred in the course of employment. Proof of employer negligence is not required, and the traditional defenses such as contributory negligence are not available to the employer.

Which of the following is a feature of the Americans with Disabilities Act (ADA)? It forbids unreasonable searches and seizures. It imposes a general duty on most employers to provide a workplace free of recognized hazards. It protects recovering drug addicts and those erroneously believed to be drug abusers. It provides rights to minimum wage and overtime pay.

It protects recovering drug addicts and those erroneously believed to be drug abusers. Explanation Drug testing could violate Title VII of the Civil Rights Act of 1964 or the Americans with Disabilities Act (see Chapter 13) if the testing fails to treat all individuals equally. The ADA protects recovering drug addicts and those erroneously believed to be drug abusers, but not employees or applicants who are currently abusing drugs.

Which is false about existing international dispute resolution bodies? A) National courts are not permitted to rule on matters of international law. B) The UN International Court of Justice exercises both advisory and contentious jurisdiction. C) The European Court of Justice hears cases involving EU law, although an individual party before it may be an American. D) The WTO Dispute Settlement Body authorized the EU to impose $4 billion in sanctions against the US.

National courts are not permitted to rule on matters of international law.

A Canadian court may not declare invalid the acts of the Chinese government taken within China's own jurisdiction because it is presumed that the foreign country, China, acted legally within its own territory. This is an example of which of the following doctrines? The act of state doctrine The doctrine of sovereign immunity The vesting of rights doctrine The governmental interest doctrine

The act of state doctrine Explanation This given scenario is an example of the act of state doctrine. The act of state doctrine holds that a judge in one country does not have the authority to examine or challenge the acts of another country within the other country's borders. For instance, an American court may not declare invalid the acts of the British government taken within Britain's own jurisdiction because it is presumed that the foreign country, Britain, acted legally within its own territory.

Which of the following standards determines the Truth in Lending Act's applicability? The debtor must be an organization. The amount secured as credit must be above $25,000. The purpose of the credit must not be personal. The credit must be subject to a finance charge.

The credit must be subject to a finance charge. Explanation One of the standards that determine the Truth in Lending Act's applicability is that the credit must be subject to a finance charge or payable in more than four installments. The Truth in Lending Act is designed primarily to assure full disclosure of credit terms.

Which of the following is a condition required for a successful defamation suit against an employer? The statement should be true. A co-worker must be responsible for the publication of the statement. The statement must be "published" to a third party. The employer's reputation must be harmed.

The statement must be "published" to a third party. Explanation A successful defamation suit requires the following conditions: 1) A false statement; 2) The statement must be "published" to a third party; 3) The employer must be responsible for the publication; and 4) The plaintiff's reputation must be harmed.

The cap-and-trade program leads to the use of the most cost-effective pollution reduction methods to reach the desired environmental goals. True or False

True Explanation Programs such as the cap-and-trade program allow the most cost-effective pollution reduction methods to be used to reach the desired environmental goals. The United States was very successful using this approach to reduce sulfur dioxide emissions that were a major factor in the creation of acid rain.

Under the Fair Credit Billing Act, within two billing cycles but not more than 90 days, the creditor must issue a response to a consumer's complaint either by correcting the account or by forwarding a written statement to the consumer explaining why the bill is accurate. True or False

True Explanation The Fair Credit Billing Act (FCBA) provides a mechanism to deal with the billing errors that accompany credit card and certain other "open-end" credit transactions. Under the Act, a cardholder who receives an erroneous bill must complain in writing to the creditor within 60 days of the time the bill was mailed. The creditor must acknowledge receipt of the complaint within 30 days. Next, within two billing cycles but not more than 90 days, the creditor must issue a response either by correcting the account or by forwarding a written statement to the consumer explaining why the bill is accurate.

The Foreign Sovereign Immunities Act of 1976 (FSIA) provides that foreign countries may not be sued in American courts, subject to several exceptions. True or False

True Explanation The Foreign Sovereign Immunities Act of 1976 (FSIA) provides that foreign countries may not be sued in American courts, subject to several exceptions. A country that conducts a commercial activity in a foreign country may not hide behind sovereign immunity if sued; however, a country acting on its own behalf and not for a commercial purpose would be able to avail itself of this protection.

The doctrine of sovereign immunity is based on the concept that "the king can do no wrong." True or False

True Explanation The doctrine of sovereign immunity is based on the concept that "the king can do no wrong." As Chief Justice Marshall explained in The Schooner Exchange v. McFaddon, "The jurisdiction of the nation within its own territory is necessarily exclusive and absolute. It is susceptible of no limitation not imposed by itself; deriving validity from an external source would imply a diminution of its sovereignty to the extent of the restriction, and an investment of that sovereignty to the same extent in that power which could impose such restriction."

Under the Resource Conservation and Recovery Act, the provisions for nonhazardous wastes are more supportive than punitive in tone and approach. True or False

True Explanation Under the Resource Conservation and Recovery Act, the provisions for nonhazardous wastes are more supportive than punitive in tone and approach. The federal government is authorized, among other strategies, to provide technical and financial assistance to states and localities; to prohibit future open dumping; and to establish cooperative federal, state, local, and private-enterprise programs to recover energy and valuable materials from solid waste.

The U.S. Export Administration Act of 1979 permits restrictions on goods and technology where exportation would harm national security. True or False

True Explanation Whereas imports are regulated to protect American businesses, exports by these businesses may be regulated for several purposes. The U.S. Export Administration Act of 1979 permits restrictions on goods and technology where exportation would harm national security, or where restriction would significantly advance U.S. foreign policy, prevent an excessive drain of scarce materials, or reduce serious inflationary impacts from foreign demand.

Which of the following statements about the General Agreement on Tariffs and Trade (GATT) is true? In practice, it has done away with nonconforming tariffs. Under GATT, countries are prohibited from implementing the concept of national treatment. Under GATT, once a good has been imported, it must be treated just as domestic goods are treated. It discourages offering the same reduced tariff to all World Trade Organization members.

Under GATT, once a good has been imported, it must be treated just as domestic goods are treated. Explanation Under the General Agreement on Tariffs and Trade, a reduced tariff offered to one World Trade Organization (WTO) member country must be offered to all WTO members and, once a good has been imported, it must be treated just as domestic goods are treated. That, at any rate, is the ideal.

An American company, Tractron, Co., wants to expand to Indonesia. Instead of creating a separate legal entity, it simply wants to create an extension of the parent company in the Asian country. In this scenario, Tractron Co. is most likely to set up a _____ in that country. joint venture franchise subsidiary branch office

branch office Explanation In this scenario, Tractron Co. is most likely to open a branch office in that country. A branch office is simply an extension of a foreign corporation into the host country. A subsidiary, however, is a legally separate entity formed under the laws of the host country and substantially owned by the foreign parent company.

Individuals may challenge government environmental decisions, such as the granting of a permit, and generally demand both governmental and private-sector compliance with the law in compliance actions. permit actions. citizen suits. challenge suits.

citizen suits. Explanation Many environmental statutes allow citizen suits, in which individuals may challenge government environmental decisions, such as the granting of a permit, and generally demand both governmental and private-sector compliance with the law. Citizen suits have often been brought under the Endangered Species Act (ESA), which provides a federal program for the protection of threatened and endangered species and their habitats.

As part of its program to _____, California began running its own carbon cap-and-trade program on January 1, 2013. cut greenhouse gas (GHG) emissions to 1990 levels by 2020 implement stricter vehicle emissions regulate air pollution offer targeted tax incentives

cut greenhouse gas (GHG) emissions to 1990 levels by 2020 Explanation As part of its program to cut GHG emissions to 1990 levels by 2020, California began running its own carbon cap-and-trade program on January 1, 2013, the second-largest such program in the world, following only the European Union's. In 2009, the House of Representatives passed a cap-and-trade bill to address greenhouse gas emissions, but the Senate declined to act on it.

When doing business abroad, the issue of whether a firm has a social responsibility to the host country beyond those required by the market and the law of that country has arisen often with regard to _____. bribery. factory labor conditions. paying U.S. taxes on foreign revenue. the host country's governmental regulations.

factory labor conditions. Explanation When doing business abroad, does a firm have social responsibilities to the host country beyond those required by the market and the law of that country? This issue has arisen in many contexts, including factory labor conditions. Not infrequently, corporations have been chastised for allowing working conditions in their foreign operations or in their suppliers' plants that Western cultures consider substandard. Sweatshops pose a host of commercial, economic, ethical, political, and social questions.

Diane, a human resource manager at a multinational corporation, finds that one of the employees in the firm had misstated his education credentials. Diane can sue the employee for _____. résumé fraud invasion of privacy defamation collusion

résumé fraud Explanation Diane can sue her employee for résumé fraud. A 2015 survey of more than 2,500 hiring managers revealed that 56 percent had uncovered a lie on a résumé, including exaggeration of job responsibilities and skills. About a quarter of the respondents had found applicants claiming to be currently with an employer for which they had never worked.

Patents that address matters of basic communication and data handling which support and permit industrywide norms are called _____. industry patents standard-essential patents essential communication patents data communication patents

standard-essential patents Explanation Standard-essential patents are those that address matters of basic communication and data handling which support and permit industrywide standards. For example, the technology behind wireless communication requires standardization so that smartphones made by any company can interact appropriately with Wi-Fi hotspots.

In an international transaction between parties in two countries, the law of _____ will apply if the parties do not specify the law to be applied to the contract. the country in which the court is located the country in which the contract was negotiated the country where the goods are sold the country where the goods are manufactured

the country in which the court is located Explanation Where the contract is silent as to a term of the sale, the law that will apply to the missing term will be the law specified in the contract; where none is specified, the applicable law will depend on the country in which the court is located. Some courts will employ the vesting of rights doctrine which applies the law of the jurisdiction in which the rights in the contract vested.

The World Trade Organization was established by the 1994 Marrakesh Agreement. True or False

true Explanation The World Trade Organization was established by the 1994 Marrakesh Agreement.

Under Chapter 13 of the Bankruptcy Act, individual debtors are permitted to voluntarily seek the court's protection to arrange a debt adjustment plan. True or False

true Explanation Under Chapter 13 of the Bankruptcy Act, individuals (not partnerships or corporations) can seek the protection of the court to arrange a debt adjustment plan. Chapter 13 permits only voluntary bankruptcies and is restricted to those with steady incomes and somewhat limited debts.

Respondeat superior is a form of _____ liability? qualified surrogate immunity vicarious

vicarious Explanation An enterprise ordinarily will not be liable for the acts of its independent contractors. Employers, on the other hand, often bear legal responsibility for employees' accidents or wrongs. That liability may spring from the doctrine of respondeat superior (let the master answer), a form of vicarious liability (sometimes called imputed liability).

Reporting an employer's illegal activity is termed _____. Multiple Choice whistle-blowing perjury collusion racketeering

whistle-blowing Explanation An increasing number of court decisions provide grounds for dismissed at-will employees to claim that they have been wrongfully discharged. Those judicial decisions were often provoked by transparently unjust dismissals including, for example, whistle-blowers who exposed their employers' misdeeds and employees who declined to commit perjury on behalf of their employers.

In the context of the Internet, what is the reason for the access disparity that exists in the United States? Availability of service is a problem in the United States. Digital literacy is an issue in the United States. Security concern in the United States is high. About 98 percent of American households are located where broadband is absent.

Digital literacy is an issue in the United States. Explanation In the context of the Internet, the divide in the United States is not just along economic lines, but also along race, age, and geographic lines. Availability of service is not the problem; the cost of connecting and digital literacy is.

The concept that a court in one country has no authority to challenge the domestic acts of another country's government is called the act of state doctrine. T/F

True

Which would be legal under the common law employment-at-will doctrine? Firing an employee because: A) the boss wants to hire her brother in that employee's position. B) the boss lost a big bet on a ball game to that employee. C) the employee is dating the boss' daughter against the boss' will. D) any or all of the above reasons

any or all of the above reasons

The broad goal of Chapter 11 bankruptcy is to work out a way for a debtor to pay off its obligations while continuing in operation. T/F

True

Which of the following is a network of infected computers that can be harnessed to take coordinated action, such as sending spam? Botnet Adware Malware Spambot

Botnet Explanation In 2013, a court in Moscow convicted two Russians of designing and controlling a botnet-a network of infected computers that can be harnessed to take coordinated action, such as sending spam. Most hijacked infected computers are located in developing countries where users often cannot afford virus protection software.

Negligence is a "substantial and unreasonable invasion of the private use and enjoyment of one's land." T/F

False

Under the Fair Labor Standards Act, employers must now pay double time for any work beyond 40 hours per week. True/False

False

A cash-on-demand plan is a defined benefit plan that acts somewhat like a defined contribution plan. True/Fasle

Fasle Explanation A prominent hybrid pension plan, a cash balance plan, is a defined benefit plan that acts somewhat like a defined contribution plan. The employer makes regular, defined contributions and guarantees a benefit amount to employees based on an established formula. These benefits are maintained in individual accounts and are expressed in terms of an accumulated lump sum, a cash balance, rather than as a periodic payment during retirement.

The _____ is charged with primary enforcement of the Children's Online Privacy Protection Act (COPPA). Federal Internet Safety Commission Child Protection Commission Children's Online Privacy Protection Commission Federal Trade Commission

Federal Trade Commission Explanation The Federal Trade Commission is charged with primary enforcement of the Children's Online Privacy Protection Act (COPPA). In 2012, it updated its rules under COPPA in a number of ways: by expanding the definition of "personal information" to include not just names, phone numbers, home and e-mail address, but also mobile phone serial numbers, and extending the rule's application to cover social media sites, interactive gaming sites, and smartphone and tablet apps.

All but which of the following is a fear associated with the Consumer Financial Protection Bureau's role in the finance market? Increased government regulation is likely to reduce the availability of credit. Increased government regulation is likely to increase the cost of credit. Increased government regulation can potentially damage consumers and the economy. Increased government interference will increase consumer spending.

Increased government interference will increase consumer spending. Explanation The Consumer Financial Protection Bureau has many doubters and outright enemies. A primary fear is that increased government regulation is likely to reduce the availability of credit or raise the cost of that credit, thereby potentially damaging consumers and the economy. Some of the critics simply want the government to leave the finance market alone.

Joe Consumer bought a defective widget from MegaCorp. If Joe puts his story about the defective widget up on his home page: A) MegaCorp cannot stop him because attempting to do so would violate Joe's First Amendment rights. B) the Federal Trade Commission can fine Joe for defamation of MegaCorp. C) MegaCorp will probably be able to stop Joe only if it can prove that Joe is intentionally spreading lies about MegaCorp's widgets. D) none of the above

MegaCorp will probably be able to stop Joe only if it can prove that Joe is intentionally spreading lies about MegaCorp's widgets.

TechCo., a U.S. company, sets up its own call center in Chile where it can pay lower wages to its Chilean employees. This practice is generally referred to _____. Outsourcing Featherbedding Offshoring Dumping

Offshoring Explanation Outsourcing generally refers to the contracting by U.S. companies of such services as call centers, accounting, and customer services to foreign companies located in low-wage markets. Offshoring refers to U.S. companies setting up their own offices in foreign low-wage markets to perform services previously done by U.S. employees.

Which of the following statements is not true of the Electronic Signatures in Global and National Commerce Act (E-SIGN)? President Clinton refused to sign it into law. Under this act, consumers cannot be forced to accept electronic signature agreements. Consumers have the right to receive records and documents in paper form rather than electronically. It gives electronic signatures the same legal stature as handwritten ones.

President Clinton refused to sign it into law. Explanation On June 30, 2000, President Clinton signed into law the Electronic Signatures in Global and National Commerce Act (E-SIGN), giving electronic signatures the same legal stature as handwritten ones, at least for most commercial purposes. Consumers, however, cannot be forced to accept electronic signature agreements or to receive records and documents electronically rather than in paper form.

The Council on Environmental Quality, which serves as an adviser to the president, was created by which of the following? The North American Agreement on Environmental Cooperation The Kyoto Protocol The Basel Convention The National Environmental Policy Act

The National Environmental Policy Act Explanation The National Environmental Policy Act established the Council on Environmental Quality (CEQ), which serves as an adviser to the president. The CEQ is a watchdog of sorts.

A foreign country may be sued in an American court despite the Foreign Sovereign Immunities Act if the lawsuit is based on commercial activity undertaken by the foreign country in the U.S. T/F

True

The Federal Trade Commission identifies web sites which make deceptive claims for the products they sell. T/F

True

Internet users in the United States pay a fee to Internet service providers for the type and level of service they desire. True or False

True Explanation If someone in the United States wishes to connect to the Internet, they contract with a commercial Internet service provider (ISP) (such as AT&T, Comcast, or Verizon) and pay a fee for the type (such as dial-up or broadband) and level of service (such as speed, data volume, and length of term) they desire. They then have access to any content provider (such as Amazon, Craigslist, Google, and YouTube).

The Federal Trade Commission has expanded the definition of "personal information" to include not just names, phone numbers, home and e-mail address, but also mobile phone serial numbers. True or False

True Explanation In 2012, the Federal Trade Commission (FTC) updated its rules under the Children's Online Privacy Protection Act (COPPA) by expanding the definition of "personal information" to include not just names, phone numbers, home and e-mail address, but also mobile phone serial numbers. The FTC is charged with primary enforcement of COPPA.

European and U.S. negotiators have an agreement which shields U.S. companies from prosecution by EU governments for violation of the Data Protection Directive as long as the companies complied with a list of "safe harbor" privacy principles. True or False

True Explanation The European Union's 1998 Data Protection Directive basically allows individuals to decide how their collected data can be used. By June 2000, European and U.S. negotiators had reached an agreement shielding U.S. companies from prosecution by EU governments for violation of the Data Protection Directive as long as the companies comply with a list of "safe harbor" privacy principles.

_____ is a complete defense in defamation cases. Publication Reputation damage Truth Whistle-blowing

Truth Explanation Truth is a complete defense in defamation cases, and managers who offer factual, honest professional judgments are unlikely to face defamation claims. Further, many state courts provide the protection of a qualified privilege.

Which of the following statements is true of workers' compensation? Workers' compensation covers self-inflicted injuries. Workers' compensation provides a form of no-fault protection in the workplace. The system is governed by a federal board. Workers cannot sue for damages resulting from a work-related injury in any circumstances.

Workers' compensation provides a form of no-fault protection in the workplace. Explanation In general, injuries, illnesses, and deaths are compensable where the harm (1) arose out of the employment and (2) occurred in the course of employment. Proof of employer negligence is not required, and the traditional defenses such as contributory negligence are not available to the employer. Thus, workers' compensation provides a form of no-fault protection in the workplace.

Regarding the digital divide at the global level, which of the following statements is true? Only 5.6 percent of Africa's citizens have access to the Internet, compared with 78.6 percent in North America. Only 24 percent of the population in sub-Saharan Africa has access to the Internet, compared with 80.6 percent in North America. Although nearly 90 percent of households are located where broadband is available, 60 percent of adults are not connected to the Internet. Worldwide, it is estimated that 50 percent of the population is connected.

Worldwide, it is estimated that 50 percent of the population is connected. Explanation Worldwide, it is estimated that 50 percent of the population is connected. For example, in 2016, only 29 percent of Africa's citizens had Internet access, compared with 89 percent in North America. In 2013, only 24 percent of the population in sub-Saharan Africa had access to electricity and, in most of these countries, the gross domestic product per capita was under $2,000.

The Environmental Protection Agency was created in 1970 to mount a coordinated attack on environmental problems. Its duties primarily include providing financial assistance to the private sector to find alternative sources of energy. assisting state and local pollution control efforts. assessing fines against businesses for violating the Environmental Protection Act. drafting agreements between the United States and its trading partners concerning the environmental effects of international trade.

assisting state and local pollution control efforts. Explanation The Environmental Protection Agency's duties include, among other things, (1) gathering information, particularly by surveying pollution problems, (2) conducting research on pollution problems, (3) assisting state and local pollution control efforts, and (4) administering many of the federal laws directed to environmental concerns. The Environmental Protection Agency was created in 1970 to mount a coordinated attack on environmental problems.

Aubrey, a private-accountant, was embarrassed and fired from his job at Sandwiches-R-Us after his employer accused him of embezzling money. The accusation was made with no factual basis. When Aubrey applied for another job, his former employer told the prospective employer why Aubrey was fired. Aubrey can sue his former employer for _____. résumé fraud invasion of privacy defamation collusion

defamation Explanation Aubrey can sue his employer for defamation. Broadly, a successful defamation suit requires the following conditions: 1) A false statement; 2) The statement must be "published" to a third party; 3) The employer must be responsible for the publication; and 4) The plaintiff's reputation must be harmed.

Presume that the Myanmar government takes a British company doing business in Myanmar and nationalizes that business. This process is call _____. expropriation appropriation privatization importation

expropriation Explanation One government action that has caused a great deal of dispute in connection with the act of state doctrine is expropriation. Expropriation is the taking by a national government, without adequate compensation, of property and/or rights of a foreign person within that government's borders. The United States contends that international law requires compensation for the taking.

Within the industry, companies that own standard-essential patents have generally agreed to license the technology to other companies and to charge rates that are all but which of the following? nondiscriminatory time-sensitive fair reasonable

time-sensitive Explanation Within the industry, companies that own standard-essential patents have generally agreed to license the technology to other companies and to charge rates that are fair, reasonable, and nondiscriminatory (FRAND).

When a country seeks to apply its own laws to foreigners, the question is whether the country has _____. jurisdiction to execute jurisdiction to regulate jurisdiction to adjudicate jurisdiction to prescribe

jurisdiction to adjudicate Explanation When a country seeks to apply its own laws to foreigners, the question is whether the country has jurisdiction to adjudicate. The Restatement (Third) of Foreign Relations Law attempts to identify the circumstances under which countries have exercised their jurisdiction to adjudicate.

The Children's Online Privacy Protection Act: makes it unlawful to use computers to solicit, lure, or entice a child, but it does not include the content of mobile phones. seeks to criminalize online content "harmful to minors" based on "contemporary community standards." prohibits not just actual child pornography, but also material that depicts persons who "appear to be minors" or that is presented so it "conveys the impression" that the person depicted is a minor. prohibits websites from collecting personal information from children under 13 without parental permission.

prohibits websites from collecting personal information from children under 13 without parental permission. Explanation The 1998 Children's Online Privacy Protection Act (COPPA) prohibits websites from collecting personal information from children under 13 without parental permission and requires that parents be allowed to review and correct any information collected about their children. The Federal Trade Commission is charged with primary enforcement of COPPA.

In the context of lemon laws, a new vehicle would be considered a lemon if it has been damaged due to negligence on the part of a consumer. returned to the manufacturer or dealer three or four times to repair the same defect. sold by a dealer who is not registered in the state where the vehicle was purchased. stolen and resold to a new buyer.

returned to the manufacturer or dealer three or four times to repair the same defect. Explanation To be protected under lemon laws, a vehicle must have been returned to the manufacturer or dealer three or four times to repair the same defect and that defect must substantially impair the value or safety of the vehicle, or the vehicle must have been unavailable to the consumer for a total of at least 30 days in a 12-month period. A vehicle meeting either or both of those tests often would be a lemon, and the purchaser would be entitled to a replacement vehicle or full refund of the purchase price.

Bunker, a golf coaching academy, uses the symbol of a yellow golf club to distinguish its business from its competitors. The symbol used by Bunker is an example of a _____. patent trademark service mark copyright

service mark Explanation The symbol used by Bunker is an example of a service mark. Words, names, symbols, devices, or combinations thereof that are used to distinguish one seller's products from those of another are called trademarks when associated with products (like IBM, Coke, and Pepsi) and service marks when associated with service businesses (United Airlines).

When you buy a book from Amazon, then your local book store does not get your business. Often, your state and local governments will not receive sales taxes as they would have if you bought the book at your local book store. In pre-Internet days, the Supreme Court had ruled that an out-of-state vendor cannot be required to collect sales taxes for any state in which that vendor does not have a(n) _____ salesperson. filing with the Secretary of State. significant presence. ability to collect sales taxes.

significant presence. Explanation In pre-Internet days, the Supreme Court had ruled that an out-of-state vendor cannot be required to collect sales taxes for any state in which that vendor does not have some significant presence, including a physical presence. The Court held that it would be an undue burden on interstate commerce for states to be able to require out-of-state vendors to comply with each unique set of state and local sales tax rules. Thus, many states joined an effort to streamline, simplify, and coordinate their sales tax laws. The idea is that, if state sales taxes are more uniform, the burden on interstate commerce from requiring the compliance of out-of-state vendors will be materially reduced.

The Electronic Fund Transfer Act (EFTA) provides remedies for all but which of the following? store scanning devices lost or stolen debit and ATM cards point-of-sale machines problems involving ATMs

store scanning devices Explanation The Electronic Fund Transfer Act (EFTA) provides remedies for lost or stolen debit and ATM cards, billing errors, and other such problems involving ATMs, point-of-sale machines, electronic deposits, and the like.

Spam is an electronic form of junk mail. True or False

true Explanation Spam is an electronic form of junk mail. Spam may be a legitimate form of commercial message at times, but it may also be an annoyance or a threat to the efficiency of the Internet because of its volume.

Which of the following is charged with enforcing the CAN-SPAM Act? The Department of Commerce The Federal Internet Commission The Federal Trade Commission The U.S. International Trade Commission

The Federal Trade Commission Explanation The Federal Trade Commission (FTC) is charged with enforcing the CAN-SPAM Act of 2003. The FTC won a substantial victory in 2008 when it obtained a court order freezing the assets of and shutting down a spam network that was capable of sending 10 billion e-mail messages a day and was responsible at one point for one-third of all spam.

HealthPro Pharma Inc. released a new medicine that promised to cure heart diseases. A few months later, it was found that patients who regularly took the medicine faced a high risk of obesity and other related side effects. In this scenario, which of the following federal agencies is empowered to remove the medicine from the market? The Consumer Product Safety Commission The Consumer Goods Forum The Food and Drug Administration The Federal Trade Commission

The Food and Drug Administration Explanation The Food and Drug Administration (FDA) is the federal agency empowered to remove the medicine from the market. The FDA monitors much of America's health landscape with responsibility for assuring the safety, effectiveness, and security of food, drugs (prescription and over-the-counter), medical devices, cosmetics, tobacco products, and more.

In the context of drug testing, which of the following forbids unreasonable searches and seizures? The Fourteenth Amendment to the U.S. Constitution The First Amendment to the U.S. Constitution All 50 state constitutions The Fourth Amendment to the U.S. Constitution

The Fourth Amendment to the U.S. Constitution Explanation The Fourth Amendment to the U.S. Constitution forbids unreasonable searches and seizures. Thus, government employers ordinarily cannot conduct a search without individualized suspicion-that is, without probable cause.

Which of the following acts imposes a general duty on most employers to provide a workplace free of "recognized hazards causing or likely to cause death or serious physical harm to employees"? The Occupational Safety and Health Act The Fair Labor Standards Act The Workplace Safety Act The Workers' Compensation Act

The Occupational Safety and Health Act Explanation A federal agency, the Occupational Safety and Health Administration (OSHA), is responsible for ensuring safe workplaces. The 1970 Occupational Safety and Health Act imposes a general duty on most employers to provide a workplace free of "recognized hazards causing or likely to cause death or serious physical harm to employees."

Which of the following acts provided for an unemployment insurance program? The Fair Labor Standards Act The Unemployment Compensation Act The Equal Employment Opportunity Act The Social Security Act

The Social Security Act Explanation The tragedy of the Great Depression, when up to 25 percent of the workforce was unemployed, led in 1935 to the passage of the Social Security Act, one portion of which provided for an unemployment insurance program. Today, all 50 states and the federal government are engaged in a cooperative system that helps protect the temporarily jobless.

Which act makes it unlawful to import goods bearing a trademark that has been registered with the Patent and Trademark Office and that is "owned by a citizen of, or by a corporation or association . . . organized within the United States" without the permission of the mark holder? The Tariff Act The Wheeler-Lea Act The Clayton Act The Uniform Adoption Act

The Tariff Act Explanation Under the Tariff Act of 1930, it is unlawful to import goods bearing a trademark registered with the Patent and Trademark Office that is "owned by a citizen of, or by a corporation or association . . . organized within the United States" without the permission of the mark holder. This provision safeguards a U.S. trademark holder's rights in the United States from infringement by foreign actors.

Which of the following debt collection practices would be legal under the federal Fair Debt Collection Practices Act? Using physical force on a debtor to recover debt Making repeated phone calls to a debtor with the intent to harass Contacting a debtor in an unfair, abusive, or deceptive manner Contacting third parties to locate a debtor

Contacting third parties to locate a debtor Explanation Contacting third parties to locate a debtor would be a legal debt collection practice under the Fair Debt Collection Practices Act. The act forbids contact with third parties other than for the purpose of locating the debtor. This provision is an attempt to prevent harm to the debtor's reputation.

Nayla buys a car from Twin Peaks Autos and finances it. She pays the car loan over three years in monthly installments. Her bank, nevertheless, sends inaccurate information to Credit House, a local credit reporting agency (CRA), and claims that her installments were not made on time. As a result, Nayla is denied a home loan by another bank, County Bank. In the context of the Fair Credit Reporting Act, which of the following can be concluded from this scenario? Nayla has no right to find out the information in her credit report. County Bank is required to provide Nayla her credit score and the factors which affected the score because County Bank denied her home loan based on that score. Credit House must change Nayla's credit report immediately upon notification that County Bank took adverse action against her. If Nayla informs Credit House about the inaccurate information, the agency might investigate her complaint within 30 days.

County Bank is required to provide Nayla her credit score and the factors which affected the score because County Bank denied her home loan based on that score. Explanation If Nayla informs Credit House, it must investigate her complaint and give her a written report. If a person claims that his or her credit file contains inaccurate information, the credit reporting agency (CRA) must investigate the complaint and give the person a written report. If he or she remains unsatisfied, a brief statement can be included in the credit file. Further, lenders are required to provide your credit score to you and factors that affected that score if the lender took any adverse action based on that score.

Which of the following statements is true of the Drug-Free Workplace Act of 1988? It requires the federal government to develop anti-drug policies for each employer. It requires employers who have contracts of $100,000 or more with the federal government to provide drug-free awareness programs for employees. It applies to all private employers in the United States. It exempts employers who receive aid from the federal government.

It requires employers who have contracts of $100,000 or more with the federal government to provide drug-free awareness programs for employees. Explanation The Drug-Free Workplace Act of 1988 applies to employers who have contracts of $100,000 or more with the federal government or who receive aid from the government. Those employers are required to develop an antidrug policy for employees. They must provide drug-free awareness programs for employees, and they must acquaint employees with available assistance for those with drug problems, while also warning them of the penalties that accompany violation of the policy.

Which of the following is a feature of the federal Consolidated Omnibus Budget Reconciliation Act (COBRA)? It provides rights to minimum wage and overtime pay. It imposes a general duty on most employers to provide a workplace free of "recognized hazards causing or likely to cause death or serious physical harm to employees." It requires employers with 20 or more employees to permit departing employees to retain group health coverage at their own expense for up to 18 months. It entitles eligible employees of covered employers to take job-protected, unpaid leave for certain family-related or medical reasons.

It requires employers with 20 or more employees to permit departing employees to retain group health coverage at their own expense for up to 18 months. Explanation The federal Consolidated Omnibus Budget Reconciliation Act (COBRA) requires employers with 20 or more employees to permit departing employees to retain group health coverage at their own expense for up to 18 months as long as they are not terminated for gross misconduct. Unfortunately, COBRA policies are often too expensive for workers who have lost their jobs.

Which of the following statements is true of the National Environmental Policy Act? Multiple Choice Its environmental provisions diminished federal presence in the promotion of a clean and healthy environment. It requires an environmental impact statement for all activities affecting the environment, whether public or private. Its primary influence results from its environmental impact statement (EIS) requirements. It was the first law that required a permit to discharge refuse into navigable waters.

Its primary influence results from its environmental impact statement (EIS) requirements. Explanation The National Environmental Policy Act's primary influence results from its environmental impact statement (EIS) requirements. With few exceptions, "proposals for legislation and other major federal action significantly affecting the quality of the human environment" must be accompanied by an EIS explaining the impact on the environment and detailing reasonable alternatives.

The legal process involved in the protection of endangered species is a complicated and time-consuming one. It is also costly for all but which of the following groups? Lawyers representing citizens groups on both sides of the issue The government and, therefore, all of us as taxpayers Those whose lives and livelihoods may be substantially altered by the protections extended The species and our world in the event necessary protections are not extended or are not effective.

Lawyers representing citizens groups on both sides of the issue Explanation The combination of the Cook Inlet Beluga Whale and Arizona Cattle Grower's Association decisions illustrates how complicated and time-consuming the legal process is for the protection of species. It is also costly—for citizen groups on both sides, for the government (and therefore all of us as taxpayers), for those whose lives and livelihoods may be substantially altered by the protections extended, and for the species and our world in the event necessary protections are not extended or are not effective.

All but which of the following is true of credit reporting protections provided to consumers under the federal Fair Credit Reporting Act (FCRA)? You can sue for damages if your rights under the act have been violated. Lenders are required to provide a consumer's credit score as well as any factors that affected that score if the lender took any adverse action based on that score. You must provide written consent before a CRA can provide information to your employer or prospective employer. Negative information more than three years old must be removed from a consumer's credit file.

Negative information more than three years old must be removed from a consumer's credit file. Explanation If "adverse action" is taken against you based on CRA information (denying you credit, a job, insurance), the CRA must tell you where it got the information. You may request your file information and a list of those who have recently sought it. If you claim your file is inaccurate, the CRA must investigate and give you a written report. If you remain unsatisfied, you can include a statement in your file, which normally accompanies future reports. All inaccurate information must be corrected or removed, usually within 30 days. Negative information older than seven years generally must not be reported. A CRA can give information to your employer or prospective employer only after your written consent. If your rights have been violated, you can sue. Lenders are required to provide your credit score to you and factors that affected that score if the lender took any adverse action based on that score.

The act governing the safe transport and disposal of hazardous wastes is the: A) Solid Waste Disposal Act. B) Toxic Substances Control Act. C) Comprehensive Environmental Response, Compensation and Liability Act. D) Resource Conservation and Recovery Act.

Resource Conservation and Recovery Act.

The Clean Water Act was designed to accomplish all but which of the following? Achieve water quality sufficient for the protection and propagation of fish, shellfish, and wildlife. Eliminate the discharge of pollutants into navigable waters. Restore and maintain the chemical, physical, and biological integrity of the nation's waters. Recycle all waste water in an effort to eliminate water pollution.

Resource Conservation and Recovery Act. Explanation Subtitle C of the Resource Conservation and Recovery Act is designed to ensure the safe movement and disposal of hazardous solid wastes. The generator of the waste must determine if that waste is hazardous under Environmental Protection Agency guidelines.

Sally uses her credit card to make purchases for her new house. She charges $3500 in one month and repays $2,500 of that amount within one month. She cannot, however, pay the remaining $1000 for about a year. The debt collection partner of her bank calls her repeatedly at all hours. The debt collection agency threatens to seize her property in one week if she fails to repay the outstanding amount along with an unreasonable late fee. In the context of the federal Fair Debt Collection Practices Act (FDCPA), which of the following statements holds true in this scenario? The credit card company may use the act to try to recover the money Sally owes it. Incorrect The debt collection agency may contact Sally's employer and ask it to garnish her wages. The debt collection agency may call Sally repeatedly during work hours with the intent to harass. The debt collection agency may contact Sally's employer to get her contact information.

The debt collection agency may contact Sally's employer to get her contact information. Explanation Sally is protected under the federal Fair Debt Collection Practices Act (FDCPA), which forbids debt collectors from using obscene language, contacting third parties other than to locate the debtor (This provision is an attempt to prevent harm to the debtor's reputation.), using or threatening to use physical force, contact the debtor during "inconvenient" hours, repeatedly call with the intent to harass, or contact the debtor in an unfair, abusive, or deceptive manner. The FDCPA allows wronged consumers to sue for damages.

Which of the following events is reducing the world's carbon sink capacity? The increasing extinction rate The receding glaciers in the Arctic region The rapidly increasing acid content in oceans The deliberate burning of forests in the Amazon and Indonesia

The deliberate burning of forests in the Amazon and Indonesia Explanation Deliberate burning of forests in the Amazon and Indonesia reduces the world's carbon sink capacity, as well as releasing previously captured carbon into the atmosphere. Deforestation in Indonesia is substantially related to its production of palm oil for export—to be used as biodiesel fuel in European vehicles.

In international trade, which of the following doctrines applies the law of the jurisdiction that has the greatest interest in the issue's outcome? The most significant relationship doctrine The vesting of rights doctrine The sovereign immunity doctrine The governmental interest doctrine

The governmental interest doctrine Explanation Applying the law of the jurisdiction that has the greatest interest in the issue's outcome signifies the use of the governmental interest doctrine. Where the contract is silent as to a term of the sale, the law that will apply to the missing term will be the law specified in the contract; where none is specified, the applicable law will depend on the country in which the court is located.

Which of the following elements must be proved to determine that a situation is fraud? The misrepresentation involved a material fact. The misrepresented facts did not result in an injury to the victim. The misrepresentation was negligent. The injured party did not rely upon the misrepresentation.

The misrepresentation involved a material fact. Explanation Although fraud arises in countless situations and is difficult to define, the legal community has generally adopted the following elements, each of which must be proved: 1. Misrepresentation of a material fact. 2. The misrepresentation was intentional. 3. The injured party justifiably relied on the misrepresentation. 4. Injury resulted.

In 2015, the FCC reclassified Internet service once again-this time as a utility-and issued Open Internet rules effective June 2015. Which of the following statements is true of these rules? These rules permit wired broadband services to block "lawful content, applications, services, or non-harmful devices." These rules apply to both fixed and mobile Internet service. These rules ensure that only business customers have access to a fast, fair, and open Internet. These rules mandate that broadband providers may not favor some lawful Internet traffic over other lawful traffic in exchange for consideration of any kind.

These rules apply to both fixed and mobile Internet service. Explanation In 2015, the FCC reclassified Internet service once again-this time as a utility-and issued Open Internet rules effective June 2015. The rules apply to both fixed and mobile Internet service, "ensuring consumers and businesses have access to a fast, fair, and open Internet." Broadband providers may not block access to legal content, applications, services, or nonharmful devices. Broadband providers may not impair or degrade lawful Internet traffic on the basis of content, applications, services, or nonharmful devices. Broadband providers may not favor some lawful Internet traffic over other lawful traffic in exchange for consideration of any kind-in other words, no "fast lanes."

A business that hires an independent contractor generally is not required to comply with a wide range of employment and labor law standards. True/False

True Explanation A business that hires an independent contractor generally is not required to comply with a wide range of employment and labor law standards that would apply were the worker an employee. Thus a business must provide, for example, unemployment insurance to its employees, but generally would not need to do so for independent contractors.

As early as 1899, Congress enacted a law that required a permit to discharge refuse into navigable waters. True or False

True Explanation As early as 1899, Congress enacted a law that required a permit to discharge refuse into navigable waters. The federal government has long maintained a role in the protection of the environment—some argue too great a role.

Countries that impose regulatory requirements on multinational enterprises may, in any given circumstance, be viewed with approval or be accused of "regulatory imperialism" or be charged with domestic protectionism. True or False

True Explanation Countries that impose regulatory requirements on multinational enterprises (MNEs) may, in any given circumstance, be viewed with approval or be accused of "regulatory imperialism" or be charged with domestic protectionism. One of the growing issues impacting the effective regulation of MNEs is the growth of state-owned companies, both in number and size.

If a consumer claims that his or her credit file contains inaccurate information, the concerned credit reporting agency (CRA) must investigate the complaint and give the consumer a written report. True or False

True Explanation If a consumer claims that his or her credit file contains inaccurate information, the credit reporting agency must investigate the complaint and give the consumer a written report. If the consumer remains unsatisfied, he or she can include a brief statement in the credit file.

In cases of severe and imminent hazards, the CPSC has the power to enforce its decisions by seeking a court order to remove a product from the market. True or False

True Explanation In cases of severe and imminent hazards, the Consumer Product Safety Commission (CPSC) has the power to enforce its decisions by seeking a court order to remove a product from the market. Only a few products, such as drop-side cribs, have actually been banned from the market by the Commission.

The World Trade Organization represents communist, socialist, and capitalist governments. True or False

True Explanation Member countries in the World Trade Organization represent a diverse array of the world's governments: from communist to socialist to capitalist, from Buddhist to Jewish to Christian to Muslim, and from all points around the globe. Thus, belief in the benefits of decreasing trade barriers is widely shared in the international community.

Electronic signatures have the same legal stature as handwritten ones, at least for most commercial purposes in the U.S. because Congress passed the Electronic Signatures in Global and National Commerce Act. True or False

True Explanation On June 30, 2000, President Clinton signed into law the Electronic Signatures in Global and National Commerce Act (E-SIGN), giving electronic signatures the same legal stature as handwritten ones, at least for most commercial purposes. Consumers, however, cannot be forced to accept electronic signature agreements or to receive records and documents electronically rather than in paper form.

A business is typically not responsible for all but which of the following if it hires an independent contractor rather than an employee? unemployment insurance employment discrimination claims intentional torts committed on behalf of the employer withholding payroll taxes

intentional torts committed on behalf of the employer Explanation A business that hires an independent contractor generally is not required to comply with a wide range of employment and labor law standards that would apply were the worker an employee. Thus, a business must provide, for example, unemployment insurance to its employees, but generally would not need to do so for independent contractors. Furthermore, employers generally are not liable for employment discrimination claims by independent contractors or for most torts committed by independent contractors in the course of work. While employers are responsible for payroll taxes such as FICA and federal and state unemployment insurance, as well as for withholding income tax from their employees, these tax obligations of a business do not extend to its independent contractors.