Corporate Governance and Law
Final Exam Questions
Course Introduction
Corporate Governance and Law explores the frameworks, principles, and legal regulations governing the direction, management, and control of corporations. The course examines the roles and responsibilities of boards of directors, executives, shareholders, and other stakeholders in ensuring ethical decision-making, accountability, transparency, and regulatory compliance. Key topics include the structure of corporate governance systems, the legal duties of directors and officers, rights and remedies of shareholders, regulatory policies, and the impact of global governance standards. Through case studies and contemporary issues, students gain insight into challenges and best practices for effective corporate governance in todays complex business environment.
Recommended Textbook
The Legal Environment of Business 13th Edition by Roger E. Meiners
Available Study Resources on Quizplus 22 Chapters
9532 Verified Questions
9532 Flashcards
Source URL: https://quizplus.com/study-set/1270
Page 2
Chapter 1: Todays Business Environment: Law and Ethics
Available Study Resources on Quizplus for this Chatper
327 Verified Questions
327 Flashcards
Source URL: https://quizplus.com/quiz/25051
Sample Questions
Q1) The common law in the United States began in:
A) France, at the time of the French revolution
B) England, before colonial times in America
C) Russia, at the time of the Russian revolution
D) the U.S., after the Declaration of Independence
E) Italy in the lex mercatoria
Answer: B
Q2) To allow electronic transmission of documents in the legal system, legislatures had to give the courts permission to change from traditional methods of transmittal.
A)True
B)False
Answer: False
Q3) Article II, Section II of the U.S. Constitution requires a 2/3 vote of approval by the Senate before an international treaty is ratified.
A)True
B)False
Answer: True
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: The Court Systems
Available Study Resources on Quizplus for this Chatper
431 Verified Questions
431 Flashcards
Source URL: https://quizplus.com/quiz/25052
Sample Questions
Q1) A plaintiff who wants to bring a lawsuit must go to a court that has subject matter jurisdiction and jurisdiction over the defendant.
A)True
B)False
Answer: True
Q2) Because of in rem jurisdiction, if Illinois resident Andy sues Alabama resident Carol over a Illinois property dispute and Carol refuses to respond, the Illinois court may:
A) not decide who the rightful owner is because it lacks personal jurisdiction over Carol
B) not decided who the rightful owner is because it lacks personal jurisdiction over Alabama
C) decide who the rightful owner is because the property is located in Illinois
D) decide who the rightful owner is because Illinois and Alabama have a special agreement
E) none of the other choices are correct
Answer: C
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Trials and Resolving Disputes
Available Study Resources on Quizplus for this Chatper
509 Verified Questions
509 Flashcards
Source URL: https://quizplus.com/quiz/25053
Sample Questions
Q1) The general rule is that a party may refuse to provide documents or other evidence if the party believes the request to be irrelevant.
A)True
B)False
Answer: False
Q2) Refer to Fact Pattern 3-2. Assume that James appeals the decision of the arbitrators to a state court. He wants to argue that using the New York Stock Exchange rules was unfair to him. Most likely, James will:
A) win hands down; the rules are unfair
B) win, if he shows that the rules favor stockbrokers
C) win, based on the legal doctrine of res judicata
D) lose, because the arbitrators were acting like judges
E) lose, because the courts routinely uphold arbitration proceedings
Answer: E
Q3) When a case is taken to an appellate court, the attorneys for the parties must present both written briefs and oral arguments.
A)True
B)False
Answer: True
To view all questions and flashcards with answers, click on the resource link above.
Page 5
Chapter 4: The Constitution: Focus on Application to Business
Available Study Resources on Quizplus for this Chatper
445 Verified Questions
445 Flashcards
Source URL: https://quizplus.com/quiz/25054
Sample Questions
Q1) In Katzenback v. McClung, concerning race discrimination at a restaurant, the Court held that the Constitution does not allow federal regulation of purely local businesses, even if the goal is socially desirable.
A)True
B)False
Q2) In Central Hudson Gas & Electric Corp. v. Public Service Comm., the New York utility commission ruled that electric utilities could not advertise to promote the use of electricity. The Supreme Court held that the:
A) First Amendment right of free speech, including commercial speech, had been violated
B) First Amendment right of free speech had not been violated because it does not protect commercial advertising
C) First Amendment right of free speech had not been violated, not because commercial speech has no protection, but because of public interest in energy conservation
D) state of New York cannot regulate public utilities without federal approval because of the commerce clause
E) none of the other choices
To view all questions and flashcards with answers, click on the resource link above.
6
Chapter 5: Criminal Law and Business
Available Study Resources on Quizplus for this Chatper
321 Verified Questions
321 Flashcards
Source URL: https://quizplus.com/quiz/25055
Sample Questions
Q1) The initial court appearance for a person accused of a crime during which the government attorney presents the criminal charges is called:
A) nolo contendere
B) an appearance
C) an arraignment
D) a demurrer
E) an indictment
Q2) The Racketeer Influenced and Corrupt Organizations (RICO) Act provides:
A) an extra weapon against organized crime
B) an ineffective weapon against organized crime
C) an extra weapon against embezzlement
D) an extra weapon against environment violations
E) none of the other choices are correct
Q3) The Sherman Act and Clayton Act (2004) allow prison terms to be imposed on:
A) those involved in burglaries
B) those involved in anticompetitive practices
C) those involved in blue collar crime
D) those involved in drug trafficking
E) none of the other choices are correct
To view all questions and flashcards with answers, click on the resource link above.
Page 7
Chapter 6: Elements of Torts
Available Study Resources on Quizplus for this Chatper
465 Verified Questions
465 Flashcards
Source URL: https://quizplus.com/quiz/25056
Sample Questions
Q1) With regard to torts, New Zealand differs from the United States in that:
A) personal injury tort suits are not allowed
B) personal injury tort suits must be filed within three days of the alleged harm occurring
C) personal injury tort suits have a maximum damage award
D) New Zealand tort law does not differ in any significant way
E) none of the other choices
Q2) John refuses to pay his bill due at a store. The store owner grabs John by the shirt, screams and him, and demands the money "or else." John is shaken but unhurt. John would most likely sue for the tort of:
A) slander
B) assault
C) invasion of privacy
D) negligence
E) none of the other choices
Q3) If a person is found liable in tort for negligence, that person is responsible for all consequences, foreseeable or not.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
8
Chapter 7: Business Torts and Product Liability
Available Study Resources on Quizplus for this Chatper
361 Verified Questions
361 Flashcards
Source URL: https://quizplus.com/quiz/25057
Sample Questions
Q1) Even if a product is safe for ordinary use, a producer may be held strictly liable in tort for not telling consumers of possible dangers associated with improperly using the product.
A)True
B)False
Q2) When considering the risk-utility balance, courts consider:
A) the extent of the manufacturer's investment in making a safe product
B) the profit of the manufacturers against the rate of consumer injury
C) the safety standards within the manufacturing plant
D) the level of consumer education needed to safely use the product
E) none of the other choices are correct
Q3) If the plaintiff in a fraud case was aware that the key information was false, but went ahead with the deal anyway, then:
A) the damage award will not be as high
B) there is no fraud
C) the defendant will not have to pay damages, but will have to pay the plaintiff's attorney fees
D) the case will go on to a higher court
E) the court's decision cannot be appealed
To view all questions and flashcards with answers, click on the resource link above.
Page 9
Chapter 8: Real and Personal Property
Available Study Resources on Quizplus for this Chatper
287 Verified Questions
287 Flashcards
Source URL: https://quizplus.com/quiz/25058
Sample Questions
Q1) Private and public nuisances are:
A) the two kinds of nuisances recognized by the law of torts
B) the two kinds of assaults recognized by the law of torts
C) two of the five kinds of nuisances recognized by the law of torts
D) two of the ten kinds of nuisances recognized by the law of torts
E) two of the three kinds of nuisances recognized by the law of torts
Q2) Your neighbor burns old tires in his back yard. That produces fumes that go on your yard. That is likely the tort of:
A) assault
B) private nuisance
C) public nuisance
D) conversion
E) all of the other choices
Q3) Which of the following is an example of a covenant:
A) only single-family homes allowed in a sub-division
B) only pastel paint colors may be used on houses in a sub-division
C) no houses in a sub-division may have dog kennels
D) no houses in a sub-division may have fences
E) all of the other specific choices are correct
To view all questions and flashcards with answers, click on the resource link above.
Page 10
Chapter 9: Intellectual Property
Available Study Resources on Quizplus for this Chatper
407 Verified Questions
407 Flashcards
Source URL: https://quizplus.com/quiz/25059
Sample Questions
Q1) Colleges may not trademark their sports team name or logos because they are non-profit institutions.
A)True
B)False
Q2) To be copyrightable, a work must:
A) be original
B) be at least 5 years old
C) be recognizable to the general public
D) be internationally known
E) none of the other choices are correct
Q3) The Copyright Act allows fair use of copyrighted material in which of the following:
A) to produce a news report about the material
B) to criticize the material
C) for teaching or scholarship
D) for all of the other specific choices
E) for none of the other choices unless permission is received
Q4) Trade dress falls under different legal standards than trademarks.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Contracts
Available Study Resources on Quizplus for this Chatper
584 Verified Questions
584 Flashcards
Source URL: https://quizplus.com/quiz/25060
Sample Questions
Q1) In Scheerer v. Fisher where Scheerer, a real estate agent, sued Fisher for failing to pay Scheerer for his services in locating property for Fisher, the appeals court held that:
A) Scheerer had a case for quantum meruit recovery
B) Scheerer did not have a case for quantum meruit recovery
C) Scheerer had a case for special performance
D) Scheerer did not have a case for just compensation
E) none of the other choices are correct
Q2) Specific damages to be paid in case of breach, that the parties agree to in the contract in advance of a breach are called ____ damages:
A) compensatory
B) expectancy
C) liquidated
D) nominal
E) punitive
Q3) If state law limits the interest rate that may be charged on a loan, then a loan charging a higher interest rate may be an illegal, unenforceable agreement.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Chapter 11: Domestic and International Sales
Available Study Resources on Quizplus for this Chatper
424 Verified Questions
424 Flashcards
Source URL: https://quizplus.com/quiz/25061
Sample Questions
Q1) Under the common law, a contract is not formed unless there is no question that an offer has been accepted. Article 2 provides that a contract can be formed in any manner, including "conduct" that shows an agreement between the parties.
A)True
B)False
Q2) Boilerplate language in a contract that excludes a warranty, and is inconsistent with other warranty discussion, is invalid.
A)True
B)False
Q3) If a supplier delivered goods that violated a trademark or patent, there would be a violation of the warranty of title.
A)True
B)False
Q4) Under Article 2, if the offeror does not clearly state a particular method of acceptance, a contract is formed when the offer is accepted in any reasonable manner under the circumstances.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 13
Chapter 12: Business Organizations
Available Study Resources on Quizplus for this Chatper
459 Verified Questions
459 Flashcards
Source URL: https://quizplus.com/quiz/25062
Sample Questions
Q1) Which of the following is usually included in the articles of incorporation:
A) name and address of the corporation
B) name and address of the corporation's registered agent
C) purpose of the business
D) names and addresses of the incorporators
E) all of the other specific choices are correct
Q2) The two types of franchises allowed are product franchises and brand-name franchises.
A)True
B)False
Q3) Refer to Fact Pattern 13-1. Jeanette plans on having a receptionist and a secretary, but no other managerial workers. For simplicity, Richard would probably suggest that Jeanette operate as a:
A) limited partnership
B) general partnership
C) sole proprietorship
D) corporation
E) cooperative
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Negotiable Instruments, Credit, and Bankruptcy
Available Study Resources on Quizplus for this Chatper
535 Verified Questions
535 Flashcards
Source URL: https://quizplus.com/quiz/25063
Sample Questions
Q1) Real estate is typically financed by borrowing money and securing the loan with a mortgage.
A)True
B)False
Q2) When the maker promises to repay the note in specified installments, the note is a(n):
A) fixed payment note
B) property note
C) installment note
D) real estate property note
E) collateral note
Q3) Billy wants to borrow $10,000 to start a male belly dancing business. Creditors are not anxious to lend him the funds. Billy convinces Gary to back-up his credit. Gary is:
A) the principal
B) the grantor
C) the testator
D) the surety
E) the detainor
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 14: Agency and the Employment Relationship
Available Study Resources on Quizplus for this Chatper
416 Verified Questions
416 Flashcards
Source URL: https://quizplus.com/quiz/25064
Sample Questions
Q1) The two general classifications of authority an agent can possess are general authority and implied authority.
A)True
B)False
Q2) Operation of law provides agents with the authority to act beyond the authority granted by the principal when:
A) an agent has a good idea
B) an agent has an opportunity to make a profit for the principal through his actions
C) an agent understands all the risks
D) the principal fails to make the right decision
E) none of the other choices are correct
Q3) The independent contractor is distinguished by:
A) the extent of the compensation
B) the extent of control the employee retains over work performance
C) the extent of control the employer retains over work performance
D) all of the other specific choices are correct
E) none of the other specific choices are correct
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: Employment and Labor Regulations
Available Study Resources on Quizplus for this Chatper
539 Verified Questions
539 Flashcards
Source URL: https://quizplus.com/quiz/25065
Sample Questions
Q1) In Chicago Teachers Union, regarding agency fees paid by nonunion workers to unions at unionized workplaces, the Supreme Court held that which of the following requirements must be fulfilled with regard to agency fees paid by nonunion workers:
A) an adequate explanation of the basis for the fee
B) a reasonably prompt explanation of the basis for the fee
C) an opportunity to challenge the fee before an impartial decision maker
D) an escrow account for the amounts in dispute while challenges are pending
E) all of the other specific choices are correct
Q2) By federal law, substance abuse policies are entirely at the discretion of the employer and need not be announced to employees.
A)True
B)False
Q3) The federal government mandates that all companies with annual revenues of $5 million or more must have drug testing programs in place.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
17
Chapter 16: Employment Discrimination
Available Study Resources on Quizplus for this Chatper
466 Verified Questions
466 Flashcards
Source URL: https://quizplus.com/quiz/25066
Sample Questions
Q1) John and Lisa are candidates for promotions. John is 34, Lisa is 56. John is given the promotion. Management decided that since Lisa has said she plans to retire in four years, promoting her would make little sense. In this case, the company:
A) had a legitimate reason for denying the promotion
B) had a compelling reason for denying the promotion
C) engaged in a forced retirement scheme
D) discriminated illegally based on age E) showed a legal age preference
Q2) If, at a trial for employment discrimination, the employer offers a job-relevant rationale for the decision that was made that the plaintiff is claiming is in fact discrimination, the plaintiff must show that the employer's rationale is what is called a: A) prima facie excuse B) constructive excuse C) pretext D) disparate E) differential
To view all questions and flashcards with answers, click on the resource link above. Page 18
Chapter 17: The Regulatory Process
Available Study Resources on Quizplus for this Chatper
349 Verified Questions
349 Flashcards
Source URL: https://quizplus.com/quiz/25067
Sample Questions
Q1) Before an appeal of the decision of an administrative agency may be made to a federal court, all appeal processes within the agency must be exhausted first.
A)True
B)False
Q2) A ____ is an authority of the government, other than a legislature or a court, created to administer a particular law.
A) regulatory agency
B) litigation agency
C) legislative agency
D) private agency
E) none of the other choices are correct
Q3) Adjudicatory hearings are initiated by:
A) a business filing a complaint
B) the Supreme Court filing a complaint
C) an agency issuing sanctions against a business
D) a business refusing to respond to a complaint
E) none of the other choices are correct
To view all questions and flashcards with answers, click on the resource link above. Page 19
Chapter 18: Securities Regulation
Available Study Resources on Quizplus for this Chatper
449 Verified Questions
449 Flashcards
Source URL: https://quizplus.com/quiz/25068
Sample Questions
Q1) Refer to Fact Pattern 21-1. The SEC discovers that Joe Kelso made a lot of money on the sale of his stock in Bettina Brownies. Under what provision of the federal securities laws might Joe be prosecuted?
A) under Rule 10-K
B) under Rule 10b-5
C) under Rule 8-K
D) under Rule 144A
E) under Regulation D
Q2) Officers of a company have a duty to use "reasonable efforts" to make a profit for shareholders, but are rarely liable for losses suffered during their leadership.
A)True
B)False
Q3) An exempt security, like a government bond, is not subject to either the registration or disclosure requirements of the federal statutes.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 20
Chapter 19: Consumer Protection
Available Study Resources on Quizplus for this Chatper
483 Verified Questions
483 Flashcards
Source URL: https://quizplus.com/quiz/25069
Sample Questions
Q1) The Used Car Rule requires dealers to give consumers the following information except:
A) a statement about any warranty terms offered with the vehicle
B) a statement about known defects with the vehicle
C) a warning that oral promises may not be enforceable
D) a suggestion that the consumer get an independent inspection of the vehicle
E) all of the other choices are required
Q2) Before being finalized, a FTC trade regulation rule must be published in the Federal Register so that:
A) the President can read it
B) interested parties may comment on it
C) the House of Representatives can review it
D) the Supreme Court can make sure it is legal
E) none of the other specific choices are correct
Q3) The Mail Order Rule attempts to reduce the incidence of deceptive practices in the first-class postal business.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
21
Chapter 20: Antitrust Law
Available Study Resources on Quizplus for this Chatper
439 Verified Questions
439 Flashcards
Source URL: https://quizplus.com/quiz/25070
Sample Questions
Q1) The Sherman and Clayton Act provide strict guidelines for what illegal monopolization is.
A)True
B)False
Q2) Under the merger guidelines a major reason to approve a merger is:
A) the demonstration that the merger will increase profits
B) the demonstration that the merger will reduce profits
C) the demonstration that the merger will create jobs
D) the demonstration that the merger will reduce market share
E) none of the other choices are correct
Q3) In reviewing the competitive effects of mergers, which of the following may be considered?
A) product market
B) geographic market
C) market share
D) product market and geographic market
E) product market and geographic market and market share
Q4) The FTC Act restricted the enforcement of certain sections of the Sherman Act. A)True
B)False
Page 22
To view all questions and flashcards with answers, click on the resource link above.
Chapter 21: Environmental Law
Available Study Resources on Quizplus for this Chatper
498 Verified Questions
498 Flashcards
Source URL: https://quizplus.com/quiz/25071
Sample Questions
Q1) Because of potential liability for dumped toxic chemicals, potential property buyers often get an EPA certification that the property has no liabilities attached to it.
A)True
B)False
Q2) In Decker v. Northwest Environmental Defense Center, where an environmental group sued the EPA and other parties because logging companies were not required to have pollution discharge permits for rain runoff on logging roads. The appeals court held that the rain runoff was associated with industrial activity, so discharge permits were required. The Supreme Court held that the EPA had properly considered the matter and properly decided that permits were not required.
A)True
B)False
Q3) Federal law that deals with pesticide registration is:
A) TSCA
B) ERISA
C) RCRA
D) Clean Water Act
E) none of the other choices
To view all questions and flashcards with answers, click on the resource link above. Page 23
Chapter 22: The International Legal Environment of Business
Available Study Resources on Quizplus for this Chatper
338 Verified Questions
338 Flashcards
Source URL: https://quizplus.com/quiz/25072
Sample Questions
Q1) In a wholly owned subsidiary, the foreign business:
A) owns at least half the operation
B) owns the whole operation
C) cannot own more than 25% of the operation
D) produces the goods in a home country and then exports them
E) none of the other choices are correct
Q2) The International Court of Justice has the power to decide international disputes. However, standing to bring suit is limited to:
A) aggrieved individuals except businesses with no acceptable neutral forum for dispute resolution
B) aggrieved parties but only in commercial transactions with disputes that cannot be resolved by arbitration
C) aggrieved parties both individuals and businesses but only if they have a specific clause in their contract calling for resolution by the International Court
D) only those countries that are part of the world community no individuals or businesses have standing
E) only those countries that are part of the world community and which do not have a well-defined judicial system
To view all questions and flashcards with answers, click on the resource link above. Page 24