Test Bank For Anderson’s Business Law & The Legal Environment Comprehensive Edition (MindTap Course List) 24th Edition

True / False

1. The government can regulate business competition and prices.

  a.  True

  b.  False

ANSWER:   True

POINTS:   1

QUESTION TYPE:   True / False

HAS VARIABLES:   False

TOPICS:   5-1 The Power to Regulate Business

OTHER:   AACSB Analytic

DATE CREATED:   8/11/2020 11:33 AM

DATE MODIFIED:   10/8/2020 8:37 PM

2. Nobel economist Milton Friedman believes that government regulation of business interferes with the free enterprise system.

  a.  True

  b.  False

ANSWER:   True

POINTS:   1

QUESTION TYPE:   True / False

HAS VARIABLES:   False

TOPICS:   5-1 The Power to Regulate Business

OTHER:   AACSB Analytic

DATE CREATED:   8/11/2020 11:33 AM

DATE MODIFIED:   8/11/2020 11:33 AM

3. An agreement between or among horizontal competitors to charge the same price is not per se a violation of the Sherman Act.

  a.  True

  b.  False

ANSWER:   False

POINTS:   1

QUESTION TYPE:   True / False

HAS VARIABLES:   False

TOPICS:   5-1 The Power to Regulate Business

OTHER:   AACSB Analytic

DATE CREATED:   8/11/2020 11:33 AM

DATE MODIFIED:   10/8/2020 8:39 PM

4. Governments may regulate business pricing practices but not business credit terms.

  a.  True

  b.  False

ANSWER:   False

POINTS:   1

QUESTION TYPE:   True / False

HAS VARIABLES:   False

TOPICS:   5-2 Regulation of Horizontal Markets and Competitors

OTHER:   AACSB Analytic

DATE CREATED:   8/11/2020 11:33 AM

DATE MODIFIED:   10/8/2020 8:40 PM

5. Each of the states and the federal government have statutes and regulations that prohibit unfair methods of competition.

  a.  True

  b.  False

ANSWER:   True

POINTS:   1

QUESTION TYPE:   True / False

HAS VARIABLES:   False

TOPICS:   5-1 The Power to Regulate Business

OTHER:   AACSB Analytic

DATE CREATED:   8/11/2020 11:33 AM

DATE MODIFIED:   8/11/2020 11:33 AM

6. The Federal Trade Commission administers the law prohibiting unfair methods of competition.

  a.  True

  b.  False

ANSWER:   True

POINTS:   1

QUESTION TYPE:   True / False

HAS VARIABLES:   False

TOPICS:   5-1 The Power to Regulate Business

OTHER:   AACSB Analytic

DATE CREATED:   8/11/2020 11:33 AM

DATE MODIFIED:   8/11/2020 11:33 AM

7. An agreement between real estate brokers to never charge a commission less than 6% is not an example of price fixing.

  a.  True

  b.  False

ANSWER:   False

POINTS:   1

QUESTION TYPE:   True / False

HAS VARIABLES:   False

TOPICS:   5-2 Regulation of Horizontal Markets and Competitors

OTHER:   AACSB Analytic

DATE CREATED:   8/11/2020 11:33 AM

DATE MODIFIED:   8/11/2020 11:33 AM

8. The Sherman Act applies only to buying and selling activities, not manufacturing and production activities.

  a.  True

  b.  False

ANSWER:   False

POINTS:   1

QUESTION TYPE:   True / False

HAS VARIABLES:   False

TOPICS:   5-2 Regulation of Horizontal Markets and Competitors

OTHER:   AACSB Analytic

DATE CREATED:   8/11/2020 11:33 AM

DATE MODIFIED:   8/11/2020 11:33 AM

9. Having a large percentage of the market is not necessarily a monopoly.

  a.  True

  b.  False

ANSWER:   True

POINTS:   1

QUESTION TYPE:   True / False

HAS VARIABLES:   False

TOPICS:   5-2 Regulation of Horizontal Markets and Competitors

OTHER:   AACSB Analytic

DATE CREATED:   8/11/2020 11:33 AM

DATE MODIFIED:   8/11/2020 11:33 AM