Introduction to Law
Final Exam Questions
Course Introduction
Introduction to Law provides students with a foundational understanding of the legal system, its principles, and its role in society. The course explores the origins and sources of law, the structure and functions of courts, and the key branches such as civil, criminal, and administrative law. Students will examine fundamental legal concepts including rights, duties, justice, and the rule of law, as well as the processes involved in interpreting and enforcing legal rules. Through case studies and real-world examples, this course also introduces students to the roles of legal professionals and the impact of law on everyday life.
Recommended Textbook Law Business and Society 11th Edition by Tony McAdams
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Chapter 1: Capitalism and the Role of Government
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Q1) Privatization often brings substantially reduced costs and improved expertise.
A)True
B)False
Answer: True
Q2) The American financial community's near collapse in late 2008 had been most directly ignited by the subprime mortgage crisis.
A)True
B)False
Answer: True
Q3) American capitalism,despite its extraordinary success,is criticized for problems of poverty,inequality,and unfairness.
A)True
B)False
Answer: True
Q4) Communists are convinced that problems of market failure mean that the free market is simply incapable of meeting the needs of all segments of society.
A)True
B)False Answer: False
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Chapter 2: Business Ethics
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Q1) Which of the following universal stages is grouped under the conventional level?
A)Adhering to stereotypical images
B)Obeying rules to avoid punishment
C)Following self-chosen universal ethical principles
D)Conforming to secure rewards
Answer: A
Q2) In the context of corporate or white-collar crime,which of the following statements is true of sentencing?
A)Companies involved in crimes do not receive reduced penalties even if they have effective compliance programs in place.
B)Federal sentencing guidelines are issued by the Uniform Commercial Code.
C)Departures from federal sentencing guidelines are not permissible for any form of cases.
D)Responsibility for compliance rests explicitly with the board of directors and top-level executives.
Answer: D
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Chapter 3: The Corporation and Public Policy: Expanding
Responsibilities
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Q1) Which of the following is likely to be a result if the corporate community takes an increasingly direct role in the political process?
A)The process of globalization will be adversely affected.
B)The law-making and implementing process will be strengthened.
C)The pluralist,democratic approach to governance will be undermined.
D)The corruption levels will decrease.
Answer: C
Q2) Corporate funds can lawfully be given directly to candidates for federal office.
A)True
B)False
Answer: False
Q3) Which of the following statements is true of political action committees (PACs)?
A)PACs can only contribute to national elections,and not state elections.
B)Corporations cannot solicit contributions from employees and shareholders.
C)The money disbursed by PACs is part of the general corporate accounts.
D)PACs are only supposed to collect voluntary contributions.
Answer: D
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Page 5
Chapter 4: The American Legal System
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Q1) An arbitrator's decision ordinarily is legally binding and final.
A)True
B)False
Q2) Felonies are less serious crimes,such as petty theft,disorderly conduct,and traffic offenses.
A)True
B)False
Q3) For felony cases,after an indictment or information,the accused individual is brought before the court for _____,where the charges are read and a plea is entered.
A)arraignment
B)conviction
C)voir dire
D)demurrer
Q4) In the context of law and equity,explain the evolution of courts of equity.
Q5) Alternative dispute resolution-particularly arbitration-is often the required dispute resolution mechanism for employee complaints such as discrimination or harassment.
A)True
B)False
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Page 6
Chapter 5: Constitutional Law and the Bill of Rights
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Q1) If a governmental body takes all of the economic value of a property or permanently physically invades the property,the taking requires just compensation unless the government is preventing a nuisance,or the regulation was permissible under property law at the time of the purchase of the property.This type of regulatory taking is referred to as _____.
A)mitigation
B)partial taking
C)total taking
D)exaction
Q2) The Due Process Clause of the 14th Amendment incorporates the personal freedoms guaranteed by the Bill of Rights and protects them against intrusion by state governments.
A)True
B)False
Q3) Explain the purposes of the U.S.Constitution.
Q4) The Supreme Court has the power to veto acts of Congress.
A)True
B)False
Q5) In the context of animal cruelty,explain with an example why the law was limited to obscene crush videos?
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Chapter 6: Contracts
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Q1) Contracts for services are governed by the Uniform Commercial Code (UCC).
A)True
B)False
Q2) Unilateral offers are not accepted by performance.
A)True
B)False
Q3) According to discharge by operation of law,the contractual responsibilities of a debtor may be discharged by a bankruptcy decree.
A)True
B)False
Q4) What are the features to be exhibited by a legally enforceable contract? Explain how contracts can be discharged on the basis of conditions.
Q5) A contract is labeled _____ until all parties fully perform.
A)anticipatory
B)executory
C)contributory
D)declaratory
Q6) Explain any two types of equitable remedies in contract cases with an example each.
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Chapter 7: Business Torts and Product Liability
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Q1) Identify the defenses available in strict liability cases.Also explain the coverage under strict liability cases.
Q2) Which of the following statements is true of a false light claim?
A)It would need to be highly offensive to a reasonable person.
B)It involves injury to one's reputation rather than emotional well-being.
C)It deals with interferences that often take the form of light,noise,smell,or vibration.
D)It is often treated as the tort of injurious falsehood.
Q3) Which of the following statements is true of the strict liability law?
A)Strict liability law focuses on the condition of the product,rather than the conduct of the parties.
B)Strict liability in tort imposes complete liability for damages from a defective product on the injured consumer.
C)Strict liability law,to be applied,requires proof of negligence on the part of the defendant.
D)Strict liability does not hold anyone in the chain of distribution liable for damages from the defective product.
Q4) Explain the Magnuson-Moss Warranty Act.
Q5) What are the four forms of invasion of privacy?
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Chapter 8: Government Regulation of Business
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Q1) Federal agency rules and orders cannot be challenged in court.
A)True
B)False
Q2) Which of the following was the first federal regulatory agency that Congress established in 1887 for the purpose of regulating railroad routes and rates?
A)The Federal Trade Commission
B)The Interstate Commerce Commission
C)The Environmental Protection Agency
D)The Food and Drug Administration
Q3) In the event of an irreconcilable conflict between federal and state law,the Supremacy Clause provides that federal law will preempt state or local law rendering it unconstitutional.
A)True
B)False
Q4) Describe the three broad categories of the federal regulatory agencies' authority.
Q5) Describe the American economy during the time of deregulation.Highlight the excessive regulation argument and the biggest risk it posed.
Q6) Elaborate on the executive and congressional constraints on agencies.
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Chapter 9: Business Organizations and Securities Regulation
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Q1) Although the law of partnerships originated in the common law,all states except _____ adopted the Uniform Partnership Act.
A)Louisiana
B)Alabama
C)Nevada
D)Wisconsin
Q2) A partnership offers limited liability to its owners.
A)True
B)False
Q3) The owners of a corporation are called stockholders.
A)True
B)False
Q4) The _____ defense against a takeover involves the target company selling off its most attractive assets.
A)greenmail
B)crown jewel
C)poison pill
D)golden parachute
Q5) Define the term "initial public offering (IPO)."
Q6) List the potential problems with the partnership form of doing business. Page 11
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Chapter 10: Antitrust Law-Restraints of Trade
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Q1) How is the presence of an unlawful price-fixing arrangement established?
Q2) A company agrees to restrict sales to the east of the city,and its competitor agrees to restrict sales to the west of the city.This arrangement is lawful under the Sherman Act.
A)True B)False
Q3) Which of the following is true of horizontal price fixing?
A)Its occurrence need not be proved.
B)It is to be resolved under the rule of reason.
C)It is imposed by suppliers on their buyers.
D)Their mere existence constitutes unlawful conduct.
Q4) A seller may resist a Robinson-Patman charge by establishing that the price differential is attributable to cost savings. A)True B)False
Q5) How does the law address patent/antitrust conflicts?
Q6) Define resale price maintenance.
Q7) Vertical restraints are those arising from an agreement among competitors. A)True B)False
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Chapter 11: Antitrust Law-Monopolies and Mergers
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Q1) The Sherman Act applies to the conduct of American business abroad when that business has a direct effect on American commerce.
A)True
B)False
Q2) Which of the following data is generally used by the federal government in combination with evidence of actual behavior to identify anticompetitive situations?
A)Profit margins
B)Patent information
C)Market concentration
D)Credit access
Q3) In 2000,Microsoft was deemed to have violated federal antitrust laws by using _____.
A)price discrimination
B)monopoly power
C)predatory pricing
D)conglomerate mergers
Q4) Explain the application of U.S.antitrust policies overseas.
Q5) What is a monopoly? How is an unlawful monopoly determined?
Q6) What is premerger notification?
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Chapter 12: Employment Law I: Employee Rights
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Q1) _____ requires firms with 100 or more employees to provide 60 days notice if they lay off one-third or more of their workers at any site employing at least 150 workers,drop 500 employees at any site,or close a plant employing at least 50 workers.
A)The Worker Adjustment and Retraining Notification Act (WARN)
B)The Consolidated Omnibus Budget Reconciliation Act (COBRA)
C)The Sarbanes-Oxley Act (SOX)
D)The Employee Retirement Income Security Act (ERISA)
Q2) Workers' compensation provides a form of no-fault protection in the workplace.
A)True
B)False
Q3) State two legal considerations that influence employer drug-testing practices in public-sector jobs.
Q4) State the common law doctrine of "employment at will" and explain the limitations that have eroded its influence.
Q5) A number of states forbid random drug testing or limit it to safety-sensitive situations.
A)True
B)False
Q6) What is the difference between an employee and an independent contractor?
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Chapter 13: Employment Law II: Discrimination
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Q1) The employment portions of the Americans with Disabilities Act (ADA) extend to small businesses with fewer than 15 employees.
A)True
B)False
Q2) Which of the following is true about accommodating individuals with disabilities?
A)The Americans with Disabilities Act (ADA) allows employers to discriminate in hiring or employing any individual with a disability.
B)The Americans with Disabilities Act (ADA) requires disabled employees to make their own reasonable accommodations.
C)An employer is required to provide an accommodation for disabled employees even if it would create an undue hardship for the employer.
D)An employer should engage in an interactive dialogue with the concerned employee to explore possible reasonable accommodations.
Q3) Unequal wage payments are lawful if paid pursuant to a seniority system.
A)True
B)False
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Chapter 14: Employment Law III: Labor-Management Relations
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Q1) Which of the following statements about lockouts is true?
A)The National Labor Relations Board (NLRB) prohibits lockouts as defensive acts to protect businesses against sudden strikes.
B)Some court decisions have expanded lawful lockouts to include those of an offensive nature designed to improve management's bargaining position.
C)Lockouts are clearly lawful even if they are designed to interfere with union members' bargaining rights and other legitimate union activity.
D)The courts consider lockouts to be unfair labor practices,even if they are initiated to prevent sabotage or violence.
Q2) Certain classes of employees,such as supervisors,are excluded from employee bargaining units.
A)True
B)False
Q3) Explain the National Labor Relations Board's (NLRB) guidelines with regard to employees indulging in political advocacy at the workplace.
Q4) What is meant by a labor union's duty of fair representation?
Q5) Identify the unfair labor practices by management and unions.
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Chapter 15: Consumer Protection
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Q1) Describe the issues that led to the passing of the Equal Credit Opportunity Act (ECOA) and identify how the Act handles these issues.
Q2) Which of the following debt collection practices would be legal under the federal Fair Debt Collection Practices Act?
A)Using physical force on a debtor to recover debt
B)Making repeated phone calls to a debtor with the intent to harass
C)Contacting a debtor in an unfair,abusive,or deceptive manner
D)Contacting third parties for the purpose of locating a debtor
Q3) Which of the following Acts was passed mostly as a response to anger over discriminating treatment of women in the financial marketplace?
A)The Fair Debt Collection Practices Act
B)The Social Security Act
C)The Equal Credit Opportunity Act
D)The Mortgage Finance Act
Q4) Lemon laws govern the export and sale of agricultural produce.
A)True
B)False
Q5) Explain the purpose of the Electronic Fund Transfer Act (EFTA).
Q6) Briefly describe the three important forms of bankruptcy action.
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Chapter 16: International Ethics and Law
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Q1) The World Trade Organization was established by the 1994 Marrakesh Agreement.
A)True
B)False
Q2) Arbitration is never used in international trade disputes.
A)True
B)False
Q3) What are the two factors used to determine whether an international custom exists?
Q4) _____ is the concept that countries should abide by international custom,treaties,and other sources of international direction because that is the civil way to engage in relationships.
A)Alluvion
B)Comity
C)Ordinance
D)Convention
Q5) Article 2 of the Uniform Commercial Code (UCC) regulates the sale of goods generally as well as sales between merchants.
A)True
B)False
Q6) Describe licensing and franchising.
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Chapter 17: Environmental Protection
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Q1) Which of the following events is reducing the world's carbon sink capacity?
A)Rise in the number of endangered species in Asia
B)Burning of forests in the Amazon and Indonesia
C)Increase in the amount of phytoplankton in the Pacific Ocean
D)Expanding of the glaciers in the Arctic region
Q2) The cap-and-trade program leads to the use of the least cost-effective pollution reduction methods to reach the desired environmental goals.
A)True
B)False
Q3) Which of the following statements is true of the Kyoto Protocol?
A)It called for a 50 percent reduction from 1990 levels of greenhouse gas emissions to be achieved by 2010.
B)It became binding when ratified by 180 countries,on Russia's ratification in late 2004.
C)It was ratified first by the United States.
D)It acknowledged that underdeveloped countries were principally responsible for the greenhouse gas levels at that time.
Q4) What are the two national goals established by the Clean Water Act?
Q5) Discuss the cap-and-trade program.
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Chapter 18: Internet Law and Ethics
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Q1) Discuss the basic tax issue that arises from cyberspace transactions.
Q2) Which of the following is charged with enforcing the CAN-SPAM Act?
A)The United States Commercial Service
B)The Federal Trade Commission
C)The United States Department of Commerce
D)The U.S.Securities and Exchange Commission
Q3) Define the term "click-wrap agreements." Identify one problem it might create for consumers.
Q4) If people wish to connect to the Internet,they contract with a commercial Internet service provider and pay a fee for the type and level of service they desire.They then have access to any content provider.This uniform access is referred to as _____.
A)net equality
B)net connectivity
C)net neutrality
D)net activity
Q5) Discuss the assignment of Internet domain names.
Q6) Identify and discuss an ethical issue raised by the global nature of the Internet.
Q7) Briefly describe the "digital divide" that exists in the United States.
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