Ethics and the Legal Environment Practice
Questions
Course Introduction
This course explores the intersection of ethical principles and legal frameworks within the modern business environment. Students will examine key concepts in moral philosophy, analyze the role of law in society, and evaluate the responsibilities of organizations and individuals to uphold ethical and legal standards. Through case studies and practical scenarios, the course addresses topics such as corporate social responsibility, regulatory compliance, workplace ethics, consumer protection, and the implications of global legal systems. By integrating theoretical perspectives with real-world applications, students will develop critical thinking skills essential for navigating ethical dilemmas and legal challenges in professional settings.
Recommended Textbook
The Legal Environment Today 7th Edition by Roger LeRoy Miller
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1810 Verified Questions
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Chapter 1: Business and Its Legal Environment
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Sample Questions
Q1) In a suit against Clem,Dona obtains the cancellation of a contract.This is A)an injunction.
B)damages.
C)rescission.
D)specific performance.
Answer: C
Q2) Judges use precedent when deciding a case in a common law legal system.
A)True
B)False
Answer: True
Q3) To Cody,the written law of a particular society at a particular time is most significant.Cody is
A)a legal positivist.
B)a legal rationalist.
C)a legal realist.
D)a person who adheres to the natural law school.
Answer: A
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Chapter 1: A: Online Developments:
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Sample Questions
Q1) According to the United States Supreme Court in Miranda v.Arizona,an individual must be apprised of certain of his or her rights
A)after any questioning.
B)at any time during questioning.
C)only in the absence of questioning.
D)prior to any questioning.
Answer: D
Q2) Khalil and Jasmin sign a prenuptial agreement that provides for any dispute to be arbitrated according to Islamic law.When a dispute arises over the parties' marital property in Iowa,Jasmin files a suit in an Iowa state court to contest the arbitration provision.According to rulings in other states' courts in similar cases,the provision will most likely be
A)enforced.
B)rewritten to remove the Islamic law clause.
C)struck down as outside the common legal framework of our society.
D)suspended while the court considers an equitable result.
Answer: A
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4
Chapter 2: Ethics and Business Decision Making
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Sample Questions
Q1) Ethical codes of conduct can set the ethical tone of a firm.
A)True
B)False
Answer: True
Q2) One guideline to evaluating the ethics of a particular action is to "let your conscience be your guide."
A)True
B)False
Answer: True
Q3) Lyle,vice-president of sales for Mi-T Electric,Inc.,adheres to Judeo-Christian religious ethical standards.With respect to their application,these standards are
A)absolute.
B)analytical.
C)discretionary.
D)utilitarian.
Answer: A
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Page 5
Chapter 3: Courts and Alternative Dispute Resolution
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Q1) Transnational Corporation and United Shipping,Inc.,agree to a contract that includes an arbitration clause.If a dispute arises,a court having jurisdiction may
A)monitor any arbitration until it concludes.
B)order an arbitrator to rule in a particular way.
C)order a party to bring the dispute to court.
D)order a party to submit to arbitration.
Q2) Mediation is adversarial in nature.
A)True
B)False
Q3) Carol files a suit against Downwind Boat Corporation.Downwind responds that it appears from the pleadings the parties do not dispute the facts and the only question is how the law applies to those facts.Downwind supports this response with witnesses' sworn statements.This is
A)a counterclaim.
B)a motion for judgment on the pleadings.
C)a motion for summary judgment.
D)a motion to dismiss.
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6
Chapter 4: Constitutional Authority to Regulate Business
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Q1) Adult Shoppe in Beach City sells a variety of publications,including child pornography.Beach City enacts an ordinance prohibiting the sale of such materials.This ordinance is most likely
A)an invalid restriction of individuals' privacy.
B)an unconstitutional restriction of speech.
C)a violation of adults' rights to enjoy certain privileges.
D)constitutional under the First Amendment.
Q2) Local governments,including cities,can exercise police powers.
A)True
B)False
Q3) Cordial Drinks,Inc.,markets alcoholic beverages.A federal regulation bans the disclosure of the alcohol content of liquor on Cordial's labels and those of other marketers.A court would likely hold this regulation to be
A)an unconstitutional restriction of speech.
B)constitutional under the First Amendment.
C)justified by the need to protect individual rights.
D)necessary to protect national interests.
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Chapter 5: Torts,cyber Torts,and Strict Liabiity
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Sample Questions
Q1) Toni files a suit against Universal Media Corporation for defamation.Actual malice must be shown for recovery of damages if Toni is
A)a corporate officer.
B)a non-employee.
C)a private individual.
D)a public figure.
Q2) Louis-larger and stronger than Mica-threatens to hit Mica before hitting and injuring him.Mica files a suit against Louis for assault and battery.Mica will most likely recover for A)assault and battery.
B)assault but not battery.
C)battery but not assault.
D)neither assault nor battery.
Q3) If an actor's conduct creates no risk,there is no negligence. A)True
B)False
Q4) Under a dram shop act,liability can be imposed without proof of negligence.
A)True
B)False
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Chapter 6: Criminal Law and Cyber Crime
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Sample Questions
Q1) Identity theft occurs when a wrongdoer steals another's form of identification.
A)True
B)False
Q2) Biff wrongfully takes an unopened carton from a Cold Storage Warehouse loading dock,puts the carton in his car,and drives away.This is A)burglary.
B)forgery.
C)larceny.
D)no crime.
Q3) Briana,an employee of Cotillion Bank,is charged with embezzlement,which requires A)fraudulently appropriating another's property.
B)obtaining lawful possession of property.
C)physically taking property from its owner.
D)the use of force or fear.
Q4) Jurisdiction can be a key issue in a case involving a cyber crime.
A)True
B)False
Q5) Only private attorneys prosecute criminal defendants.
A)True
B)False
9
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Chapter 7: International Law in a Global Economy
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Sample Questions
Q1) China and India form an agreement to govern their commercial exchanges with one another.This is
A)a bilateral agreement.
B)a lateral agreement.
C)a multilateral agreement.
D)a unilateral agreement.
Q2) Tariffs are taxes on imports.
A)True
B)False
Q3) The government of Iran violates an international law.Persuasive tactics to remedy the situation fail.The only recourse of other nations is to
A)approve the European Union's enforcement of the law.
B)ask the International Court of Justice to enforce sanctions.
C)seek enforcement of the law through the United Nations.
D)take coercive action-sever relations,impose boycotts,go to war.
Q4) U.S.laws that prohibit discrimination in employment do not apply to U.S.employees working for U.S.firms located abroad.
A)True
B)False
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Chapter 8: Intellectual Property and Internet Law
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Sample Questions
Q1) Gas Up,Inc.,designs,makes,and sells a fuel injection system that copies Hybrid Corporation's design without Hybrid's permission.This is most likely
A)copyright infringement.
B)patent infringement.
C)trademark infringement.
D)a theft of trade secrets.
Q2) A famous trademark may be diluted only by the unauthorized use of an identical mark.
A)True
B)False
Q3) A suggestive use of ordinary words may not be trademarked.
A)True
B)False
Q4) RockStar Software,Inc.,develops a new series of performance-related video games.This software is most likely protected by A)copyright law.
B)patent law.
C)trademark law.
D)trade secrets law.
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Chapter 8: A: Online Developments:
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Sample Questions
Q1) Dale's debts are discharged in a liquidation bankruptcy.With respect to Dale's prebankruptcy debt,Even Stevens Credit Reporting Agency must automatically report A)nothing.
B)the debt as "discharged," except the nondischargeable debt.
C)the debt as "discharged," including the nondischargeable debt.
D)the debt as "unpaid."
Q2) Iowa enacts a statute that requires a label on a video game to warn parents when "the range of options available to a player include killing and maiming the image of a human being." Gamemakers file a suit against the state to block the statute's enforcement.Based on the decision of a California court in a case involving a similar statute,the court in this case is most likely to rule that the statute
A)extends restrictions on sex-based content to violence in video games.
B)violates the First Amendment's guarantee of freedom of speech.
C)imposes market-share liability on makers of violent video games.
D)replaces the voluntary rating system currently in use.
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Page 12
Chapter 9: Formation in Traditional and E-Contracts
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Sample Questions
Q1) InTown Delivery Service promises to deliver a certain couch to Kurt,who promises to pay for the service.If InTown does not perform,the firm may be required to
A)do nothing.
B)make another promise.
C)pay damages.
D)perform a different service.
Q2) A partnering agreement can indicate the parties' intent with respect to subsequent contracts.
A)True
B)False
Q3) Panini Vittles,Inc.,contracts with Qino to deliver its sandwiches.Later,the parties decide to cancel their contract.They can
A)rescind their entire contract.
B)rescind their contract to the extent that it is executory.
C)rescind their contract if they make a new contract at the same time.
D)not rescind their contract.
Q4) Legally,a minor may not contract with an adult.
A)True
B)False
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Chapter 10: Contract Performance,breach,and Remedies
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Sample Questions
Q1) Tristan hires Stefani to perform at Tristan's Club,but she breaches the agreement to accept a higher-paying job at Rock Star Arena.Tristan files a suit against Stefani.The court will most likely
A)award damages to Tristan.
B)cancel Stefani and Rock Star's contract.
C)order Stefani to perform the contract.
D)reform Tristan and Stefani's contract.
Q2) Contracts involving interests in any property must be in writing to be enforceable.
A)True
B)False
Q3) Real Cheap Painters,Inc.,agrees to paint Quint's house,using a particular brand of "discount" paint.Real Cheap completes the job but uses a different brand of discounted paint.This is most likely
A)an absolute excuse for Quint's refusal to pay.
B)a material breach.
C)complete performance.
D)substantial performance.
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14
Chapter 11: Sales,leases,and Product Liability
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Sample Questions
Q1) Express warranties can be found in a seller's brochure.
A)True
B)False
Q2) Gleaming Gem Corporation agrees to sell Jewelry Outlets,Inc.(JOI),fifty new diamonds,but the contract does not specify a place of delivery.JOI is expected to pick up the goods.The place of delivery is
A)Gleaming's place of business.
B)JOI's place of business.
C)the Annual Gems and Jewels Convention.
D)the U.S.Postal Service office nearest to JOI's place of business.
Q3) A lessee is a party who transfers a right to the possession and use of goods under a lease.
A)True
B)False
Q4) UCC Article 2 applies to sales of goods,real estate,and services.
A)True
B)False
Q5) A seller must take steps to guard against the foreseeable misuse of a product.
A)True
B)False
Page 15
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Chapter 12: Creditor-Debtor Relations and Bankruptcy
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Sample Questions
Q1) Mac files a petition for a discharge in bankruptcy.Mac's failure to appear at a meeting of the creditors listed in Mac's schedules may result in Mac being A)denied a discharge of bankruptcy. B)fined.
C)held in contempt. D)imprisoned.
Q2) To adjust debts and institute a repayment plan that is less expensive and less complicated than other options,Brunch & Lunch Café,a small business,may file a petition in bankruptcy for relief through A)a liquidation.
B)a reorganization.
C)a repayment plan.
D)a family-farmer bankruptcy plan.
Q3) A bankruptcy estate consists of all the debtor's interests in property currently held,wherever located.
A)True
B)False
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Chapter 13: Mortgages Foreclosures After the Recession
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Sample Questions
Q1) Federal law encourages private lenders to modify mortgages so as to lower the monthly payments of borrowers who are in default.
A)True
B)False
Q2) The annual percentage rate is the actual cost of a loan on a yearly basis.
A)True
B)False
Q3) Lenders are required to charge prepayment penalties on most subprime mortgages and home equity loans.
A)True
B)False
Q4) Refer to Fact Pattern 13-1.Under federal law,disclosures with respect to one of Northeast's loans must be provided
A)a certain number of days after the loan is finalized.
B)a certain number of days before the loan is finalized.
C)at the same time at which the loan is finalized.
D)at whatever time is most rational and appropriate.
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Chapter 14: Small Business Organizations
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Sample Questions
Q1) Some states require franchisors to provide disclosure of information to prospective franchisees.
A)True
B)False
Q2) A sole proprietor owns the entire business but does not receive all of the profit.
A)True
B)False
Q3) Good faith and fair dealing are important in terminating a franchise relationship.
A)True
B)False
Q4) On a partner's dissociation,his or her duty of loyalty to the partnership ends.
A)True
B)False
Q5) A partner owes to the partnership and the other partners a duty of loyalty.
A)True
B)False
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Chapter 14: A: Landmark in the Legal Environment:
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Q1) Dingo Bangles Company wants to present information in "disclosure documents" via the Internet to prospective franchisees.Among other legal requirements with which Dingo must comply,prospective franchisees must
A)agree to settle any lawsuits that may arise over the documents.
B)be able to download or save all electronic documents.
C)provide e-mail addresses for Dingo to verify users' authenticity.
D)register with the Federal Trade Commission via Dingo's Web site.
Q2) Roshini is a shareholder of Satsui,Ltd.,a Japanese firm.Roshini brings a derivative action against the company.If the action is unsucessful,Satsui
A)can sue Roshini for damages.
B)must pay Roshini's legal fees.
C)must apologize to Roshini.
D)must accept Roshini's apology in lieu of costs,fees,or damages.
Q3) Eduard is a shareholder of Deutsche Internationale,a German firm.In Germany
A)most claims against firms are alleged in shareholders' derivative suits.
B)the law does not provide for derivative litigation.
C)derivative actions can only challenge directors' actions that shareholders could not legally ratify.
D)if a derivative action is unsuccessful,a firm can sue the plaintiff.
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Page 19
Chapter 15: Corporations
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Q1) A corporation formed in another country but doing business in the United States is referred to in the United States as an alien corporation.
A)True
B)False
Q2) Gladys is a shareholder of Frozen Yogurt,Inc.As a shareholder,Gladys must approve
A)amending the bylaws.
B)declaring a corporate dividend.
C)hiring a chief executive officer.
D)issuing additional shares.
Q3) Shareholders are the ultimate authority in every corporation.
A)True
B)False
Q4) Implied powers of a corporation are expressed in state statutes.
A)True
B)False
Q5) A corporation can retain its profits or pass them on to the shareholders as dividends.
A)True
B)False
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Chapter 16: Agency
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Q1) An independent contractor is an employer who controls his or her agent's performance.
A)True
B)False
Q2) If a principal does not ratify an unauthorized contract,the principal is not bound.
A)True
B)False
Q3) In considering the scope of an agent's implied authority,the test is whether the agent reasonably believed that he or she had the authority.
A)True
B)False
Q4) Trey,an agent for Uno Music Corporation,executes an unauthorized contract with Variety Recording,Inc.,that is highly advantageous to Uno.Variety withdraws from the deal before Uno ratifies the contract.The contract is
A)valid.
B)variable.
C)void.
D)voidable.
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21
Chapter 17: Employment,immigration,and Labor Law
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Sample Questions
Q1) Under federal law,only key employees who take temporary family or medical leave are entitled to job reinstatement.
A)True
B)False
Q2) Non-workers do not have a right to picket an employer during a strike.
A)True
B)False
Q3) Unity Production Company is suspected of employing illegal immigrants.The government conducts random compliance audits and other enforcement measures against those who might violate immigration laws through A)the CIS.
B)the H1-B.
C)the ICE.
D)the NLRB.
Q4) Employers can agree with unions not to handle,use,or deal in non-union-produced goods.
A)True
B)False
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Page 22
Chapter 18: Employment Discrimination
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Sample Questions
Q1) Refer to Fact Pattern 18-2.Kit's conduct is most likely a violation of A)no law.
B)the Age Discrimination in Employment Act.
C)the Americans with Disabilities Act.
D)Title VII of the Civil Rights Act.
Q2) Race can be a bona fide occupational qualification.
A)True
B)False
Q3) Dave has AIDS,Erin is blind,and both work for First Financial Centre.Considered disabled under the Americans with Disabilities Act
A)are Dave and Erin.
B)is Dave only.
C)is Erin only.
D)is neither Dave nor Erin.
Q4) All employers in the United States are subject to federal employment discrimination laws.
A)True
B)False
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Page 23
Chapter 19: Powers and Functions of Administrative Agencies
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Q1) Persons who favor the creation of a National Biotech Agency to regulate the production of genetically altered agricultural products should concentrate their lobbying efforts on
A)Congress.
B)federal administrative agencies that oversee agricultural products.
C)the United States Supreme Court.
D)the president of the United States.
Q2) Independent regulatory agencies such as the Federal Trade Commission are
A)not part of the government's executive branch.
B)outside the major departments of the government's executive branch.
C)subagencies of executive agencies.
D)subject to more executive authority than executive agencies.
Q3) Von seeks information about Wes and other well-known businesspersons under the Freedom of Information Act.To obtain the information,Von must
A)agree not to reveal any trade secrets.
B)reasonably describe the information.
C)get a court order.
D)have Wes's and the others' permission.
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Chapter 20: Consumer Protection
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Sample Questions
Q1) State laws often provide more sweeping and significant protections for the consumer than federal laws.
A)True
B)False
Q2) A collection agency must include a validation notice whenever it initially contacts a debtor for payment of a debt.
A)True
B)False
Q3) Under federal law,the calorie content of the food on a menu must be posted by Organic Mix,LLC,if Organic Mix is
A)a restaurant chain with twenty or more locations.
B)a food distributor with twenty or more customers.
C)a food processor with twenty or more products.
D)a food producer with twenty or more acres.
Q4) Food labels are not required to provide standard nutrition facts. A)True
B)False
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Chapter 21: Protecting the Environment
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Q1) Hi-Yield Agriculture,Inc.,makes a pesticide with a one-in-a-million risk to people of developing cancer from exposure.This substance must be
A)disposed of before anyone develops cancer.
B)registered before it is sold.
C)taken off the market and placed in temporary storage.
D)used only in a way that avoids exposure to people.
Q2) If an agency decides that an environmental impact statement is unnecessary,it need not issue a statement supporting this conclusion.
A)True
B)False
Q3) The Environmental Protection Agency periodically updates the pollution standards.
A)True
B)False
Q4) The Environmental Protection Agency defines wetlands as "lands that are wet."
A)True
B)False
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Chapter 22: Real Property and Land-Use Control
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Q1) Land assigned by zoning laws for business activities is designated as being for commercial use.
A)True
B)False
Q2) Sunny City wants to acquire undeveloped land within the city limits to convert into a public park.Sunny City brings a judicial proceeding to obtain title to the land.This is an exercise of A)eminent domain.
B)a constructive eviction.
C)a restrictive covenant.
D)zoning power.
Q3) A quitclaim deed warrants more than any other deed.
A)True
B)False
Q4) Xavier owns a duplex that he leases to Yvon and Zack.Xavier may sell A)the duplex at any time.
B)the duplex,but only after the lease expires and the tenants move out.
C)the duplex,but only with the tenants' permission.
D)the lease,but not the duplex.
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Chapter 23: Antitrust Law and Promoting Competition
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Sample Questions
Q1) Size alone determines whether a firm is a monopoly.
A)True
B)False
Q2) Fresh Vegetables,Inc.,a wholesaler,refuses to sell its produce to Good Mart Stores,Inc.,a retailer.Under the Sherman Act,this is
A)"an unfair or deceptive act or practice."
B)a per se violation.
C)not a violation.
D)subject to analysis under the rule of reason.
Q3) Gulf Air,Inc.,is the major wholesale distributor of software in the state of Florida.Its closest competitor is Fluid Systems Company,another Florida firm.The two firms agree that Gulf Air will operate in south Florida and Fluid Systems will operate in north Florida.This is
A)a group boycott.
B)a market division.
C)a joint venture.
D)an exclusive-dealing contract.
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28
Chapter 24: Investor Protection and Corporate Governance
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Q1) Pumping up a company occurs when a single person using multiple aliases on an online forum creates the illusion of widespread interest in a stock.
A)True
B)False
Q2) To raise $12 million to expand operations,Star Corporation makes a stock offering directly to sixty accredited investors and twenty sophisticated,but unaccredited investors.Star plans to notify the SEC of sales.Under the Securities Act of 1933,this issue may qualify as an "exempt" transaction
A)as is.
B)if all of the investors are also given certain material information.
C)if the offering is also made available to the general public.
D)under no circumstances.
Q3) Against a charge of a violation of the Securities Act of 1933,only an issuer of stock can assert the due diligence defense.
A)True
B)False
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