Multiple choice

1. Which of the following is a true statement?

The Federal Trade Commission is the federal agency in the U.S. that is empowered to prevent and punish unfair and deceptive marketing and advertising practices in trade or commerce.

The Consumer Products Safety Commission in the U.S. prohibits manufacturers from selling and marketing products unless they are marked with the agency’s official “seal of approval.”

Common law legal doctrines no longer apply to polluters in the U.S. since they are so big and powerful and thus can only be regulated by federal statutory law.

An environmental impact statement is required in the U.S. for all federal and state government development projects and for all proposed federal and state legislation.

2. Which of the following is a true statement?

Criminal law focuses on duties that exist between private persons.

The prosecution in a criminal case in the U.S. needs only establish by a preponderance of the evidence that the defendant committed the crime.

Criminal liability frequently depends on a specific state of mind or intent.

All promises are legally binding contracts based on common law notions of criminality for promise-breaking.

3. Under law, a tort can be best described as:

Any violation of an ethical duty.

Another term for a crime or misdemeanor.

Any action done in violation of a prior agreement which allows the victim to recover damages.

A civil wrong which allows the person injured or harmed to recover damages.

4. The major disadvantage of a sole proprietorship is:

The difficulty and cost of formation.

The unlimited liability for the business's debts.

The sharing of management authority with others.

The difficulty in transferring ownership to others.