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3.1 Legal Environment

Total questions: 25

Worksheet time: 23mins

Name
Class
Date
1.

legally binding agreement between two or more people or businesses

a)

offer

b)

lease

c)

recall

d)

contract

2.

each person who participates in a contract agreement is called a

a)

contract

b)

party

c)

offer

d)

contract

3.

contracts ensure

a)

customers understand their role & rights in a sales transaction

b)

businesses have the materials & resources needed to operate

c)

all parties understand the terms of the agreement & consequences for not performing

d)

may be written or verbal

4.

easier to enforce and can avoid misinterpretations

a)

written

b)

verbal

5.

is a proposal to provide a good or service

a)

offer

b)

acceptance

c)

consideration

d)

intention of legal consequences

6.

means that all parties involved must agree to the terms of the contract

a)

offer

b)

acceptance

c)

consideration

d)

intention of legal consequences

7.

means that something of value must be promised in return

a)

consideration

b)

acceptance

c)

offer

d)

intention of legal consequences

8.

Time management is the practice of organizing time & work assignments to increase personal efficiency

a)
b)
9.

The parties entering into the contract must understand that it can be enforced by law

a)

offer

b)

intention of legal consequences

c)

acceptance

d)

consideration

10.

Goods, services, and actions involved in a contract must be legal.

a)
b)
11.

a person is legally able to entr into a binding contract

a)

capacity

b)

contract law

c)

breach of contract

d)

consideration

12.

regulates how contracts are written, executed, and enforced

a)

capacity

b)

consideration

c)

contract law

d)

sales contract

13.

when one or more parties do not follow the agreed terms of a contract without having a legitimate reason

a)

break contract

b)

tear up contract

c)

breach of contract

d)

build contract

14.

elements of contract

a)

offer

b)

acceptance

c)

consideration

d)

intention of legal consequences

15.

It is important to carefully read & understand all legal documents before signing.

a)

True

b)

False

16.

list the goods or services provided by a business and the price the customer pays in exchange

a)

sales & service contracts

b)

lease

c)

partnership agreement

d)

buying contract

17.

contract to rent something

a)

property lease

b)

equipment lease

c)

service contract

d)

lease

18.

property lease

a)

type of activity that will take place

b)

length of time to use

c)

how much will be paid

19.

software license

a)

may be considered a type of lease

b)

publisher keeps ownership of software

c)

only used in ways described

d)

user agrees when installed

20.

partnership agreement

a)

contract used when two or more individuals create a business

b)

states how much each person invests

c)

each persons responsibilities

d)

split profits & losses

21.

employment contract

a)

terms of employment between a business & an employee

b)

describes how long employment will last

c)

how much the employee will be paid

d)

benefits provided by the business

e)

information on trade secrets

22.

Reorder the following: The US legal system interprets & enforces laws & regulations, includes those that apply to businesses.

a)

rules

b)

law

c)

regulations

1)
2)
3)
23.

Employer identification number (EIN)

a)

required for tax purposes

b)

assigned by the IRS for businesses to use federal tax returns & forms

c)

Partnerships required to have

d)

corporations required to have

e)

sole proprietor with one employee required to have

24.

Consumer Bill of Rights

a)

four presented by President John F Kennedy in 1962 to Congress

b)

basic expectations of fair treatment of consumers

c)

have expanded from 4 to 8

d)

regulated by IRS

25.

an order to remove or repair unsafe products in the market

a)

offer

b)

recall

c)

acceptance

d)

consideration