Legal Environment of Business Pt. 2

Two businesses—Berry Farms LLC and Canned Jams Inc.—dispute the quality of goods delivered by the seller and the price agreed to by the buyer. With regard to this dispute, the two parties can

• settle it between themselves.

• resolve it through an alternative method, such as arbitration.

• litigate it.

• any of the choices.

Congress enacts the Ad Restriction Act (ARA) to limit advertising in certain circumstances. The ARA will be considered valid if it directly advances a substantial government interest

• and goes no further than necessary to achieve its objective.

• and the parties affected by it can elect how “far” to go in applying it.

• without regard to how “far” it goes.

• and goes further than necessary to ensure full coverage.

“Be honest and treat people fairly.” In regard to business ethics, implementing this motto is

• only important with respect to important customers.

• only important in politically sensitive situations.

• subordinate to such expedient factors as cash flow and debt payments.

• important in all circumstances.

In the pretrial phase of litigation between Frozen Foods Company and Gourmet Kitchens Inc., the plaintiff directs to an interrogatory to the defendant. In Gourmet’s response, the defendant in good faith can

• attempt to refute any asserted claim.

• give away as little information as possible.

• ask the court to impose sanctions.

• deluge the plaintiff with data.

Under the U.S. Constitution, Congress has the power to regulate

• every commercial enterprise in the United States.

• only intrastate commercial enterprises.

• only local commercial enterprises.

• only non-commercial activities.

An injunction is

• the cancellation of a contract.

• a departure from precedent.

• an order to do or to refrain from doing a certain act.

• a payment of money.

Radiant Supply wants to initiate a suit against Solar Power LLC by filing a complaint. The complaint should include a statement of the facts necessary to show that

• the case can be disposed of without a trial.

• the defendant does not have a valid defense.

• the solvency of the defendant is in question.

• the plaintiff is legally entitled to a remedy.

Ethics focuses on how persons making business decisions apply

• corporate policy.

• legal doctrine.

• moral principles.

• financial priorities.

At one time, a court of law could grant as a remedy only

• monetary damages.

• an order to perform a contract as promised.

• a judicial proceeding for the resolution of a dispute.

• an injunction.

Laws enacted by legislative bodies at any level of government make up the body of law generally referred to as

• the supreme law of the land.

• statutory law.

• the basis of all law in the United States.

• uniform law.