1.Taxes have been used as a method of encouraging or discouraging taxpayers from doing something.

True or False

2.When a Fat Burger offers a discount to senior citizens, they have violated the price discrimination provisions of the Robinson-Patman Act.

True or False

3.The Class Action Fairness Act is a first step toward setting limits on the amount of damages for which companies are liable should their products harm consumers.

True or False

4.When one party fails to follow the terms of a contract, the party has committed a(n)

Multiple Choice

• obligation violation.
• breach of contract.
• termination by association.
• nonperformance endorsement.

5.It appears that some regulation of business is necessary to ensure fair and honest dealings with the public.

True or False

6.The Federal Trade Commission issues and interprets rules and regulations regarding business activities. The Federal Trade Commission is a governmental administrative agency.

True or False

7.Under contract law, a 15-year-old may be a party to a contract.

True or False

8.An interlocking directorate occurs when a board of directors includes members of the board of competing corporations.

True or False

9.Specific performance means that a person who violates a contract is required to live up to the agreement even if money damages are adequate.

True or False