Legal Environment Of Business Study Guide

Module 1: Chapter 1 & 2 Quiz 1 1. The law could best be described as: a collection or bundle of rights. 2. A new state law mandates that all employers must prohibit smoking on employer premises. The law further provides that any employer who allows an employee or a client/customer to smoke on its premises is subject to a court order requiring the employer to enforce the law. Describe this statute in terms of all possible classification methods. Your Answer: As the new state law mandates that all employers must prohibit smoking on employer premises; it is substantive as it describes the rights and obligations of employers to prohibit the smoking on their premises. We can also conclude that the law is based on the principle of equity because it’s applicable to all without any discrimination and requires the employers to implement the court order practically by prohibiting the smoking on their premises and enforce the law. 3. A constitution is a body of principles that establishes the structure of a government and the relationship of that government to the people who are governed. True 4. The U.S. Supreme Court has held that a right to obtain an abortion is protected under the right of privacy. True 5. One advantage of our current legal system is that the growth of technology has not created many new laws. False 6. The U.S. Constitution provides that we have a right to be free from unreasonable intrusions by others. True 7. A police officer who stops a driver for expired tags can search the driver's cell phone without a warrant. False 8. One of our most important rights is the right of privacy. True 9. A motion to dismiss is one form of answering a complaint. True 10. The _____ rule(s) on the admissibility of evidence. Judge 11. A MedArb process is one used for resolving medical malpractice issues through arbitration. False 12. When a writ of certiorari is granted, the appeal has been denied. False 13. The power given to courts to hear certain types of cases is called: jurisdiction. 14. A judge rules on the admissibility of evidence presented in the trial. True 15. Jurors are not permitted to use "Google" when they are participating in the trial or deliberating. True Quiz 2 1. Those uniform state laws that have been adopted by individual states were first written by Congress. False 2. The law could best be described as: a collection or bundle of rights. 3. The landlord's duty that corresponds with the right of a tenant to have an apartment in working order and good condition is: providing hot and cold running water. 4. Treaties made by the United States are not deemed part of the law. False 5. _______ law creates, defines, and regulates rights and liabilities. Substantive 6. Procedural law specifies the steps that must be followed in enforcing those rights and liabilities. True 7. A right is defined as: a legal capacity to require another party to perform an action. 8. Suppose Jack signs a contract to purchase a home from Jill, but Jill later refuses to transfer title to the home to Jack. Jack could force Jill to transfer title to the home by asking a court for an order of ________ specific performance. 9. A motion to dismiss is one form of answering a complaint. True 10. The person who initiates a civil lawsuit is called the: plaintiff. 11. The power given to courts to hear certain types of cases is called: jurisdiction. 12. A trial court can change its decision if the parties make a motion for reversible error. False 13. The defendant in a civil case is the party who is suing. False 14. The U.S. Courts of Appeals consists of ______federal judicial districts. Thirteen (13) 15. Garnishment is a method for satisfying a judgment against a defendant. True Module 2 1. The U.S. Patriot Act and airport security regulations were enacted for the protection of: the state. 2. Warren Buffett is known for following the front-page-of-the-newspaper test. True 3. Positive law: is enacted by government authority. 4. Recognizing that an ethical dilemma exists is usually far more difficult than resolving the dilemma once its existence is recognized. False 5. Businesses that respond to social forces often lose their competitive edge. False 6. Moral relativists believe that ethical decisions will differ based on circumstances. True 7. In addition to issues of social responsibility, business values and ethics play an important role in the success or failure of a business. True 8. Freedom from economic domination is a personal right protected under United States law. True 9. Which of the following amendments to the U.S. Constitution provides for due process protections? Fifth Amendment 10. The Fifth Amendment protects individuals and corporations from unreasonable searches in their homes, and places of business. False 11. Ex post facto laws can be adopted by either the states or the national government. False 12. The Second Amendment provides for the right to keep and bear arms. True 13. Which of the following is not characteristic of the “living” Constitution? states' powers equal to federal powers 14. The greatest changes to the written Constitution have been brought about by: judicial interpretation. 15. The powers given by the federal government to the states are described as delegated powers. False Quiz 2 1. The importance of trust as a fundamental principle in capitalism is illustrated by expectations that: investors will be able to earn a return on their investments. 2. "Primum non nocere" is Latin for: Above all, do no harm. Let the buyer beware. Hear no evil, see no evil, and speak no evil. No news is good news. 3. The NBA has been supportive of public protests related to human rights in the United States. However, in order to protect their business interests in China, the NBA has not supported human rights protests occurring in China. Which ethical theory does the NBA follow? moral relativism 4. The theory of justice is based on the concept that if there were no laws or rules reasonable people would develop fair rules and standards. True 5. Kant’s theory understood that sometimes you have to use someone to achieve a onesided benefit. False 6. Milton Friedman believes that corporations should operate within the bounds of the law. True 7. Moral relativists believe that ethical decisions will differ based on circumstances. True 8. The final question of the Blanchard-Peale “Three Part Test”, has to do with conscience. True 9. Which of the following powers is not reserved solely to the national government? power to tax 10. Under the Commerce Clause, states may not use their taxing power to discriminate against out-of-state businesses. True 11. Federal supremacy refers to: the power of the federal government to legislate in certain areas. 12. The equal protection clause prohibits a statute from treating one person differently from another: when there is no reasonable ground for classifying them differently. 13. When the federal government deregulates an industry, the states automatically have the power to regulate the same industry. False 14. The Citizens United decision permits prior restraints on political ads by organizations. False 15. Which of the following amendments to the U.S. Constitution provides for due process protections? Fifth Amendment Module 3 Quiz 1 1. The public comment period for a proposed agency rule can be waived if: there is a public emergency. 2. The ____________ protection against self-incrimination cannot be invoked by a corporate officer when an agency has subpoenaed corporate records. Fifth Amendment. 3. An administrative agency can be created to perform: a. all three of the functions of government (executive, legislative, or judicial). 4. An agency's action is ultra vires if: the agency has exceeded the authority given in its enabling act. 5. In an emergency, an administrative agency can act beyond the scope of the statute that created it. a. False 6. The Federal Register lists all administrative regulations, presidential proclamations, and executive orders on a semiannual basis. False 7. A subpoena to testify or to produce business records: cannot be opposed on the grounds that such a request constitutes an unreasonable search and seizure. 8. Agency investigations of possible violations of agency rules are handled through independent enforcement agencies. False 9. Which of the following is part of an administrative agency’s power to investigate? an investigation to ascertain facts with respect to a particular suspected or alleged violation 10. The authority of an agency is limited to the technology in existence at the time the agency was created. False 11. The “public comment” period for proposed administrative agency rules must be at least __________ days. 30 12. Regulations properly adopted by agencies do not have the full force of law, as do statutes. False 13. The Federal Register Act provides that printing an administrative regulation in the Code of Federal Regulations is public notice of the contents of the regulation to persons subject to it or affected by it False 14. Generally, which power does an administrative agency not possess? to impose criminal sanctions 15. Within the area in which the administrative agency is authorized to make decisions, the agency can operate as a specialized court or court of limited jurisdiction. True Quiz 2 1. Administrative agencies are subject to strict procedural rules and disclosure requirements. True 2. A consent decree is an informal settlement of an enforcement action brought by an administrative agency. True 3. An administrative agency is a governmental body charged with administering and implementing legislation. True 4. Which of the following is part of an administrative agency’s power to investigate? an investigation to ascertain facts with respect to a particular suspected or alleged violation 5. The ____________ protection against self-incrimination cannot be invoked by a corporate officer when an agency has subpoenaed corporate records. Fifth Amendment. 6. The Electronic Freedom of Information Act Amendments of 1996 extend the public availability of information to electronically stored data. True 7. Agency investigations of possible violations of agency rules are handled through independent enforcement agencies. False 8. The Federal Register Act provides that printing an administrative regulation in the Code of Federal Regulations is public notice of the contents of the regulation to persons subject to it or affected by it False 9. Regulations properly adopted by agencies do not have the full force of law, as do statutes. False 10. The Administrative Procedure Act is a federal law that establishes the promulgation and process rules for administrative agencies. True 11. A finding that an agency action is ultra vires means that the agency was acting within its authority. False 12. Before an agency can begin rulemaking proceedings it must be given jurisdiction: by congressional enactment in the form of a statute. 13. An administrative regulation: has the force of law. 14. The public comment period for a proposed agency rule can be waived if: there is a public emergency. 15. An arbitrary and capricious action by an agency is based on constitutional rights. False Module 4 Quiz 1 1. Crimes are generally defined and their punishments specified by: codes and statutes. 2. In a prosecution for unauthorized use of computers, unsecure _______ has proven to be a challenge in prosecution for unauthorized use of computer information. wi-fi networks 3. Destroying information stored on a computer may be a crime. True 4. Due process includes the right to be heard, question witnesses, and present evidence. True 5. Submitting false personal income information on a home mortgage loan application to a bank is not a crime unless you fail to pay your mortgage. False 6. If a person unlawfully gains access to a computer and fraudulently causes goods to be “lost” from their true destination, he might be guilty of _______. diverted delivery by computer. 7. Criminal penalties for corporations are based on a percentage of sales. False 8. Failure to give ______ means that a defendant’s statements or confession cannot be used as evidence against that individual. the Miranda warnings 9. A debt collector who calls a hospitalized patient eight times for seven days in a row to collect $42.67 is protected from liability from IIED if the hospital patient actually owed the debt. False 10. The concept of immunity from liability means that: certain persons and entities are not subject to tort liability. 11. Oral or spoken defamation is: slander. 12. Torts arise from a violation of a ____ duty. private 13. The tort of intentional infliction of emotional distress requires proof of outrageous conduct and resulting emotional distress in the victim.!True 14. A tort is an interference with someone’s person or property.!True 15. Professionals have a duty to perform their functions at the same level as would a reasonable person. False Quiz 2 1. It is not necessary that some person be harmed for an act to be considered a crime. True 2. Submitting false personal income information on a home mortgage loan application to a bank is not a crime unless you fail to pay your mortgage. False 3. The Fifth Amendment to the United States Constitution’s protection against selfincrimination applies to: individuals only. 4. The Racketeer Influenced and Corrupt Organizations (RICO) Act authorizes both criminal and civil actions. True 5. Which of the following searches could be conducted without a warrant? a search of your garbage can that has been placed on the curb for collection 6. Putting incorrect income figures on a federal financial aid application is the crime of false claims. True 7. For business crimes, managers cannot be held criminally responsible for the conduct of their employees. False 8. All states recognize _________, which protects privileged documents and notes from seizure by the government, even with a warrant. the attorney-client privilege 9. A statement that causes someone’s character to be questioned is the tort of defamation. True 10. Professionals have a duty to perform their jobs at the level of: a reasonable professional in the same business. 11. John owed Barney money. Barney called John's home several times per day for five weeks asking for repayment, with some of the calls coming after midnight. Barney might be liable for: intentional infliction of emotional distress. 12. Once the cause in fact is established, the plaintiff must establish ________, or that the damages suffered were a foreseeable consequence of the defendant’s negligent actions. proximate causation. 13. Which of the following is not an absolute defense to negligence? comparative negligence by the plaintiff 14. There are several defenses available when the standard of strict liability is applied. False 15. A tort is an interference with someone’s person or property. True Module 5 Quiz 1 1. An executory contract is: entered into but not fully performed. 2. An obligation to pay for the reasonable value of services rendered when there is no contract would be called: quasi-contractual. 3. A fixed-price construction contract places the risk of price increases on the buyer. False 4. The subject matter of a contract may not involve: illegal conduct. 5. Only the parties who signed the original contract can have rights with respect to that contract. False 6. An implied contract is shown by: the acts and conduct of the parties. 7. The plaintiff in a quasi-contractual action can recover: the reasonable value of the benefit conferred upon the defendant. 8. A party to a contract may be an individual, a partnership, a limited liability company, a corporation, or a government. True 9. An executed contract is an agreement that has been completely performed. True 10. To apply a quasi contract in a case of unjust enrichment, the party seeking payment must be able to show that the party receiving the benefit was aware of the benefit being conferred. True 11. An executory contract is an agreement by which something remains to be done by one or both parties. True 12. A contract is a(n) ________ agreement for which the _______.: legally binding, law gives a remedy. 13. In a quasi-contract situation, the reasonable value of services or goods to avoid unjust enrichment are called: restitution damages. 14. Quasi-contractual liability will generally be imposed when the cost of performing a contract is greater than had been expected. False 15. With regard to a unilateral contract, the offeree does not accept the offer by express agreement, but rather by performance. True Quiz 2 1. An executed contract is an agreement that has been completely performed. True 2. The promisor in a contract may also be called the: obligor. 3. A contract is a(n) ________ agreement for which the _______.: legally binding, law gives a remedy. 4. A void contract is one that is otherwise valid but may be rejected or set aside by one of the parties. False 5. Contracts formed on the Internet: are governed by terms that are conspicuous on the website and to which the buyer has agreed. 6. A person who makes a promise is the promisor, while a person to whom the promise is made is the promisee. True 7. Quasi contracts are contracts imposed upon parties even when there is no contract. True 8. The plaintiff in a quasi-contractual action can recover: the reasonable value of the benefit conferred upon the defendant. 9. Negotiable instruments are: formal contracts. 10. The subject matter of a contract can never relate to the performance of personal services. False 11. Whenever a person receives a benefit for which payment has not been made, there is an unjust enrichment and the value of such benefit must be paid to the person conferring the benefit. False 12. An implied contract is shown by: the acts and conduct of the parties. 13. An agreement that contemplates the performance of an act prohibited by law is usually void. True 14. The greatest risk to purchasing online is providing your credit card information to the seller. False 15. An offer of a reward for the arrest and conviction of a criminal is an example of a: unilateral contract.