Business Degree Business Law 3

Question 1

What is an 'LLC' (Limited Liability Company)?

Accepted Answer

A business structure combining the liability protection of a corporation with the tax treatment of a partnership

Answer

A type of non-profit organization with limited operations

Answer

A government-regulated financial institution

Answer

A temporary joint venture between two corporations

Question 2

What is 'antitrust law' designed to prevent?

Accepted Answer

Monopolistic practices and anti-competitive behavior that harm consumers

Answer

Companies from filing for bankruptcy protection

Answer

Employees from forming labor unions

Answer

Foreign companies from operating in the US

Question 3

What is a 'non-disclosure agreement' (NDA)?

Accepted Answer

A legal contract preventing parties from sharing confidential information

Answer

A contract requiring a company to publish its financial results

Answer

A government form for trade secret registration

Answer

An agreement to disclose all business risks to investors

Question 4

What does the Americans with Disabilities Act (ADA) require of US employers with 15 or more employees?

Accepted Answer

Providing reasonable accommodations for qualified employees with disabilities

Answer

Hiring a minimum percentage of disabled workers

Answer

Installing elevators in all office buildings

Answer

Filing annual disability compliance reports with the EEOC

Question 5

What is 'promissory estoppel' in contract law?

Accepted Answer

A legal doctrine that enforces a promise even without formal consideration if one party reasonably relied on it

Answer

A promise made under duress that voids a contract

Answer

The automatic renewal clause in a service contract

Answer

A court order stopping a contract from being performed

Question 6

What is 'strict liability' in the context of product liability law?

Accepted Answer

Liability imposed regardless of fault when a defective product causes harm

Answer

A seller's liability only when proven negligent

Answer

Criminal liability for manufacturing counterfeit goods

Answer

A retailer's obligation to replace defective products free of charge