Ethics and the Legal Environment
Chapter Exam Questions
Course Introduction
This course explores the intersection of ethical principles and the legal environment in which businesses and organizations operate. Students will examine ethical theories, frameworks for ethical decision-making, and the role of personal and organizational values in shaping behavior. Key areas include the relationship between ethics and the law, corporate social responsibility, stakeholder management, and the impact of legal regulations on business practices. Through case studies and real-world examples, students will develop skills to identify and address legal and ethical dilemmas faced by managers and professionals in a variety of industries.
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) Law may be defined as the good acts people do for others without threat of sanction.
A)True
B)False
Answer: False
Q2) One of the most important state laws affecting business is:
A) the Uniform Probate Code
B) the Uniform Commercial Code
C) the Federal Rules of Civil Procedure
D) the Uniform Partnership Act
E) the Compensation for Tort Victims Act
Answer: B
Q3) Most states have a two-part legislature. Having two legislative house is meant to:
A) make things more efficient
B) make things more fair
C) serve as an added check on government power
D) serve to enhance government power
E) none of the other choices
Answer: C
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) Venue of a lawsuit concerns the fairness of the location in which a case is tried.
A)True
B)False
Answer: True
Q2) A suit involving a dispute for $1 million over a contract signed in California under California law with parties from two different states could be tried in federal or California courts using the same law.
A)True
B)False
Answer: True
Q3) Which of the following is true about the federal appeals courts?
A) there are ten circuit courts of appeals
B) courts of appeals usually assign three-judge panels to review decisions of district courts
C) the U.S. government does not have the right to appeal any decision lost at district court
D) the judges must retire at age 65
E) all of the other choices are true
Answer: B
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) If a court wants to prevent the destruction of evidence until a formal hearing can be held, it may order an injunction such as a:
A) temporary restraining order
B) permanent restraining order
C) lasting restraining order
D) voir dire order
E) nominal order
Answer: A
Q2) If a business is found to have records in such a mess that the other side of in a lawsuit cannot find documents it wants, the court may punish the messy party or even rule against it in the case.
A)True
B)False
Answer: True
Q3) Most discovery occurs during courtroom proceedings.
A)True
B)False
Answer: False
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 the case Board of Trustees of the State University of New York v. Fox, the Supreme Court discussed the test for judging commercial-speech regulation. The standard for judging commercial speech regulation is:
A) "not necessarily perfect and unreasonable"
B) "imperfect and unnecessary"
C) "perfect and necessary"
D) "not necessarily perfect but reasonable"
E) "never perfect, but reasonable"
Q2) States have the power to impose:
A) whatever taxes they need for "legitimate public purposes"
B) taxes that do not impede interstate commerce
C) only taxes that impact interstate commerce
D) taxes against foreign corporations
E) taxes against all producers of "harmful goods"
Q3) A restriction on advertising for a doctor's services is an example of:
A) a violation of a Fifth Amendment right
B) a violation of a First Amendment right
C) a constitutional privilege
D) a legal restriction on medical professionals
E) none of the other choices are correct
Page 6
To view all questions and flashcards with answers, click on the resource link above.
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) In felony cases, it is not uncommon for the charges to be settled with a plea bargain rather than go to trial.
A)True
B)False
Q2) Sending materials containing false information through the post office can lead to a conviction of:
A) embezzlement
B) money laundering
C) mail fraud
D) insider trading
E) false representation
Q3) In a criminal case, if evidence is not gathered properly, such as by a search that violates Fourth Amendment rights, then at trial that evidence is:
A) allowed to be referred to but not presented directly
B) allowed only if probable cause is first established
C) dropped under the exclusionary rule
D) irrelevant since there can be no trial if there was an improper search
E) none of the other choices
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) If an accounting firm is sued for negligently preparing a faulty financial report for a company, it is likely that the accounting firm is:
A) not liable; a reasonable number of mistakes are expected to occur
B) liable if the mistake is one that an ordinary person (any person off the street) would have not made
C) held subject to a special statutory standard of care
D) held to have violated the principles of strict liability
E) none of the other choices
Q2) If someone calls you from a city in another part of the country and tells you they want to strangle you, there has probably been an assault.
A)True
B)False
Q3) A person has acted negligently if:
A) they were incapable of reaching the victim before the harm occurred
B) they tried to prevent the harm, but could not due to a lack of professional knowledge
C) they were not present at the time of the injury
D) they admit to not liking the victim
E) none of the other specific choices
To view all questions and flashcards with answers, click on the resource link above. Page 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) In MacPherson v. Buick, where the wheel on a new Buick collapsed, causing the car to crash, injuring MacPherson, the court of appeals held MacPherson could sue:
A) Buick for negligence under contract law
B) Buick for negligence under tort law
C) Buick for strict liability under contract law
D) Buick for strict liability under tort law
E) the wheel maker, not Buick, for negligence in product construction
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) In the 19th century, consumers bore more of the cost of product-related injuries.
A)True
B)False
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) A hostile user of another person's land may come to own the property or an easement through:
A) hostile possession
B) land use possession
C) regular use clauses
D) adverse possession
E) none of the other choices are correct
Q2) Which of the following is not real property:
A) land
B) minerals
C) buildings
D) trees
E) all of the other choices are real property
Q3) Zoning laws are typically not used to:
A) control the quality of construction
B) control kinds of speech
C) decide what kinds of buildings may be built where
D) provide green zones
E) all of the other choices are common to zoning
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) The Federal Circuit Court of Appeals has primary responsibility for reviewing which kinds of cases:
A) patent
B) contract
C) copyright
D) trade secret
E) all of the other choices
Q2) Which of the following can be patented in the United States, but not in Europe:
A) a surgery method
B) a therapy method
C) a new variety of corn
D) a new variety of sheep
E) none of the other specific choices may be patented in Europe
Q3) "Thermos" is a generic mark.
A)True
B)False
Q4) "Chicken of the Sea" is an example of a suggestive trademark.
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) Freedom of contract means businesses may enter into any contracts they wish to.
A)True
B)False
Q3) A ____ contract is one that is accepted by performance.
A) bilateral
B) nonbinding C) real
D) performance
E) none of the other choices are correct
Q4) Promissory estoppel is also known as detrimental reliance.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 12
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) Contracts under Article 2 of the UCC could include:
A) a house
B) a patent
C) a bank account
D) rights to royalties from a book
E) none of the other choices
Q2) Under UCC Article 2, when there is a failure to respond to a writing signed by the other party:
A) the contract will not be binding
B) there cannot be a good contract
C) there cannot be a good contract, but under the common law there could be
D) the court may require the other party to respond in writing to make the contract legal
E) none of the other choices are correct
Q3) Under Article 2, if the legal title to a good does not pass, there has not been a sale under the UCC.
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) Most shareholders give third parties their ____. It is a written authorization to cast their vote so they do not have to attend a shareholder meeting in person.
A) charter
B) shares
C) resolution
D) liens
E) none of the other choices
Q2) Refer to Fact Pattern 13-1. Jeanette wants to exercise sole managerial control over her business but she does not have enough money to set the business up. Several members of Jeanette's family are willing to invest in her business because they think it will succeed. Richard may suggest that Jeanette establish which type of organization?
A) a joint venture
B) a syndicate
C) a cooperative
D) a joint bond company
E) a limited partnership
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) The primary distinction in secured credit transaction is whether the property:
A) is tangible or intangible
B) may or may not be stored
C) is money or something else
D) is real or personal
E) is insured or not
Q2) The most common use of drafts is to:
A) guarantee payment from bankrupt parties
B) guarantee payment for real estate
C) guarantee payment for nonnegotiable contracts
D) guarantee payment between businesses located in different states
E) none of the other choices are correct
Q3) For a check, the bank is the drawee.
A)True
B)False
Q4) When the maker of a note promises to repay the note at specific dates over time, it is called an installment note.
A)True B)False
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) An agency relationship normally involves the use of an agent to represent a principal in dealing with which of the following:
A) shareholders
B) representatives
C) third parties
D) attorneys
E) ratifications
Q2) ____ is a person who contracts with another to do something for him but who is not controlled by the other nor subject to the other's right to control with respect to his physical conduct in the performance of the undertaking.
A) a special agent
B) an apparent agent
C) an employee
D) a general agent
E) none of the other choices
Q3) A person appointed by an agent to help the agent for certain specific transactions is a special agent.
A)True
B)False
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) Which of the following problems suffered by a worker would not be eligible for coverage by workers' compensation:
A) being beaten by a worker at work who went insane and attacked people
B) falling down drunk at an office party and suffering an injury
C) suffering an injury when falling out of a chair at work when falling asleep on duty
D) all of the specific choices would be covered
E) none of the specific choices would be covered
Q2) One of the problems of workers' compensation laws is that the laws give employers less incentive to invest in work-site safety.
A)True
B)False
Q3) A contract signed by a worker agreeing not to join a union is called a(n):
A) exclusive employment agreement
B) primary boycott
C) yellow-dog contract
D) agency shop contract
E) none of the other choices
To view all questions and flashcards with answers, click on the resource link above. Page 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) According to Title VII, it is ____ to use professionally developed ability tests to determine whether job applicants possess the necessary skills and attributes.
A) never legal
B) legal as long as there is statistical validation of the tests
C) legal as long as the company has used the test before
D) illegal without a special court issued dispensation
E) none of the other choices are correct
Q2) Title VII restricts discrimination based on:
A) appearance
B) experience
C) national origin
D) attitude
E) education
Q3) Some states have laws making it illegal to discriminate against employees on the basis of marital status.
A)True
B)False
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) Businesses do not have to provide confidential information to a government agency in administrative law matters.
A)True
B)False
Q2) Informal agency procedures may include:
A) obtaining evidence by a subpoena issued by a federal judge
B) hearings with a Department of Justice attorney
C) tests and inspections
D) federal court hearings
E) none of the other choices
Q3) 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
Q4) One agency created in the 1930s was the Federal Communications Commission.
A)True
B)False
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) SEC examiners of a proposed securities offering can issue a "deficiency letter" if they believe the information in a prospectus is not complete. However, if the issuer responds in a timely manner, the SEC cannot delay the sale.
A)True
B)False
Q2) The Public Company Accounting Oversight Board, which has authority to set accounting standards and discipline CPAs for misconduct, was established by the:
A) Safe Harbor Act of 1995
B) Sarbanes-Oxley Act of 2002
C) Securities Exchange Act of 1934
D) Securities Litigation Reform Act of 1995
E) none of the other choices are correct
Q3) No-load mutual funds are sold to the public directly through the mail only.
A)True
B)False
Q4) A "publicly held company" is one that has issued securities that are publicly traded.
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 specific finance charges that must be provided to a debtor by a creditor under Truth-in-Lending are detailed by the Federal Trade Commission in Regulation Z.
A)True
B)False
Q2) Which of the following is an example of a class III medical device:
A) bandages
B) wheelchairs
C) x-ray machines
D) surgical materials
E) pacemakers
Q3) Under the Lanham Act, a private party injured by the false ads of a competitor may sue the competitor for double value of lost profits.
A)True
B)False
Q4) The Equal Credit Opportunity Act makes it illegal for a creditor to take into account the income of a person who applies for credit.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 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) When a merger increases concentration, a defense that shows that the firms' customers are sophisticated, large buyers that will not be taken advantage of by a bigger merged firm is:
A) the failing firm defense
B) potential competitor defense
C) power-buyer defense
D) directorate defense
E) no such defense is recognized
Q2) There is no exact definition of a monopoly, but in general a monopoly:
A) exists when one or a few firms dominate the sales of a product or service
B) one firm makes a better product than others in the same market
C) consumers prefer one firm over all others
D) one firm has more than 30% of the market share for a certain product
E) a firm does not have to pay any federal taxes
Q3) A controversial aspect of the Robinson-Patman Act is that it:
A) allows sellers to charge different prices for different buyers
B) tends to over-stimulate competition
C) denies consumers some of the benefits that result from mass merchandizing
D) denies sellers some benefits of vertical integration
E) all of the other choices
To view all questions and flashcards with answers, click on the resource link above. Page 22
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) Which of the following is NOT an effect of the depletion of the ozone layer:
A) increase in skin cancer
B) more eye cataracts
C) injury to the immune system
D) more premature births
E) none of the other specific choices are effects
Q2) Which of the following is a major pollutant regulated by the Clean Air Act:
A) sulfur dioxide
B) particulates
C) ozone
D) carbon monoxide
E) all of the other specific choices are major pollutants
Q3) Dihydrogen oxide is a major air pollutant regulated under the Clean Air Act.
A)True
B)False
Q4) Mercury is a major air pollutant regulated under the Clean Air Act's NAAQS.
A)True
B)False
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) Duty orders generally remain in place until:
A) the importer pays a fine
B) the importer can show three consecutive years of "fair market value" sales
C) the importer can show one year of "fair market value" sales
D) the price of the good increases
E) the cost of production of the good decreases
Q2) When a complaint is made to the World Trade Organization about a dumping tariff, the WTO:
A) has the power to force the nation to change the restriction
B) does not have the power to force the nation to change the restriction
C) can fine the nation
D) can block all trade with the nation
E) none of the other choices are correct
Q3) In letter of credit transactions, the seller gives the goods to the buyer and the buyer then pays the seller's bank to retire a loan (the letter of credit) taken out by the seller to cover the production costs of the goods.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 24