IBT Pre-Assessment #2

Which of the following entities creates statutes?

• Judges

• Presidents

• Congress

• Government agencies

• Corporations

What rules does a society develop to govern the conduct of and relationships among its members?

• Torts

• Statutes

• Regulations

• Precepts

• Laws

Who executes a power of attorney?

• A principal

• An agent

• A bank

• A notary public

• A broker

Which of the following is not a purpose of deregulation?

• Removal of existing regulations

• Forgoing proposed regulations

• Minimize the complexity of regulations

• Reduce the rate at which new regulations are enacted

• Create new regulations to clarify existing regulations

Which of the following was not a purpose of the Sherman Antitrust Act?

• Prevent price fixing

• Prevent market allocation

• Prevent boycott in restraint of trade

• Prevent price discrimination

• Prevent monopolies

Clothing company Parq filed a lawsuit against the rapper Buzzkill, arguing that the rapper failed to wear Parq branded jeans and hoodies during his concerts and failed to adequately promote the Parq brand, which the company had paid him $2 million to do. What type of lawsuit has Parq filed against Buzzkill?

• Discharge by mutual assent

• Breach of contract

• Failure to perform

• Unlawful subject matter

• Damaged brand

Robin Hopper, owner of RH Sports Equipment, has a long-standing business relationship with Hawkins Manufacturing. The relationship has always been professional, amicable, and benefited both sides. Recently, Hawkins Manufacturing has brought in a new CEO as well as two new board members. These new changes are beginning to worry Robin as it appears that not only the relationship, but also the business terms and potential future contracts, are about to change. Robin is keeping an open mind about what the future relationship will look like but is also willing to consider her own options. What kind of agreement would RH Sports be entering into if Dustin, Hawkins Manufacturing’s sales rep that Robin works with, presents a contract that requires RH Sports to purchase “all” softball equipment only from Hawkins in order to get a “special” price discount?

• Implied warranty

• Tying agreement

• Implied contract

• Binding contract

• Community of interests

What is the name given to an agreement that results from the actions of the parties rather than an exchange of specific promises?

• Express contract

• Void contract

• Implied contract

• Unenforceable contract

• Implied warranty

What is a violation of public law?

• Tort

• Crime

• Malfeasance

• Felony

• Misdemeanor

Which of the following is not true about bankruptcy?

• It is more difficult to file a Chapter 7 bankruptcy now than it was many years ago.

• To file for involuntary bankruptcy, creditors must prove that the individual has unsecured debt in excess of just over $16,750 and cannot pay its debts as they come due.

• Bankruptcy can only be voluntary.

• Today most bankruptcies are voluntary.

• Chapter 13 bankruptcy applies only to individuals.