Law and Banking Principles Study Guide

MIDTERM STUDY GUIDE In the United States, the law consists of written laws and court decisions. True False Question 2 4 / 4 pts The legal rules that control the actions of a business, reflect past and current thinking about how similar businesses should and should not act. True False Question 3 4 / 4 pts The study of business law does not involve an ethical dimension. True False Question 4 4 / 4 pts A constitution is a primary source of law. True False Question 5 4 / 4 pts A secondary source of law is one that clarifies a source of primary law. True False Question 6 4 / 4 pts The U.S. Constitution is the basis of all law in the United States. True False Question 7 4 / 4 pts Only Congress may pass a law in conflict with the Constitution. True False Question 8 4 / 4 pts The national government has the implied power to undertake actions necessary to carry out its expressly designated powers. True False Question 9 4 / 4 pts State regulatory powers are often referred to as police powers. True False Question 10 4 / 4 pts Generally, given the broad language of the Constitution, the line between state and national powers is often determined by Congress the courts the President the administrative branch Question 11 4 / 4 pts Under the U.S. Constitution, the federal government has the power to regulate commercial activities among the states. This grant implies that the regulation of such activities is not within the authority of Congress the states the President the courts Incorrect Question 12 4 / 4 pts Mary creates a t-shirt design that expresses support for Nash, a presidential candidate, and distributes t-shirts to all of her friends. The t-shirts are an example of unprotected speech commercial speech symbolic speech illegal speech Question 13 4 / 4 pts Ethics has to do with how a businessperson applies this(ese) in their business decisions: legal doctrine moral principles corporate policy financial priorities Question 14 4 / 4 pts With respect to what society will tolerate, a company’s compliance with the law, and no more, is the highest ethical level the moral minimum the only ethical level irrelevant Incorrect Question 15 0 / 4 pts Managers who set unrealistic production or sales goals increase the probability that employees will act: ethically unethically illegally not act at all Question 16 8 / 8 pts Duty-based ethical standards are most likely to derive from (choose all applicable answers) Select all that apply a corporate ethics code a religious reasoning philosophical reasoning the law Question 17 4 / 4 pts Hale, research manager for Investor Fund, Inc., adheres to utilitarian ethics in making business and ethical decisions that involve the actions of the firm. According to this standard, an action is morally correct when it produces the greatest good for Hale himself Investor Fund Inc the fewest people the greatest number Question 18 4 / 4 pts Laws would be meaningless without the courts to interpret and apply them. True False Question 19 4 / 4 pts Judicial review is the process through which Congress approves or rejects judicial appointments. True False Question 20 4 / 4 pts Any court can exercise jurisdiction over any property, no matter where it is located. True False Question 21 4 / 4 pts A corporation is subject to jurisdiction only in states where it does such substantial and continuous business, that it is