Law and Public Policy Final Exam Questions
Course Introduction
Law and Public Policy explores the dynamic intersection between legal frameworks and policy development, emphasizing how laws shape, constrain, and enable public decision-making. This course examines the principles underlying legal systems, discusses the legislative and regulatory processes, and analyzes the ways in which legal mechanisms are used to address societal issues. Students will critically evaluate contemporary public policy challenges through a legal lens, study landmark case law, and consider the impact of administrative agencies and courts. By integrating theoretical perspectives with practical case studies, the course provides insight into how effective public policies are designed, implemented, and evaluated within the context of the legal environment.
Recommended Textbook
Law Business and Society 11th Edition by Tony McAdams
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Page 2
Chapter 1: Capitalism and the Role of Government
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Q1) The pure free market approach adds all forms of government including regulatory agencies,consumer protection,environmental rules,and antitrust law to our business system and our society.
A)True
B)False
Answer: False
Q2) Describe the effects of globalization.
Answer: Globalization represents the international flowering of capitalism in the sense that the power of free markets is being embraced,enthusiastically or reluctantly,almost everywhere on Earth.That power raised new threats,of course,including the spread of America's corporate influence and values around the globe.Now,however,globalization seems to be entering a new phase.In a "hyper-connected," "flat" world,we are all linked together in an economic and cultural intimacy scarcely imaginable a few decades back,but new evidence suggests that a period of "de-globalization" may be emerging.International trade and money flows are slowing or actually declining.Globalization has succeeded in raising wages significantly in emerging powers such as China and India.As a result,manufacturing jobs are returning to America in surprising numbers.Of course,globalization is not vanishing,but its economic advantages are shifting and new nationalistic urges threaten to slow the pace of global linkages.
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Chapter 2: Business Ethics
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Q1) A(n) _____ believes principle is primary and consequence is secondary or even irrelevant.
A)deontologist
B)situationalist
C)teleologist
D)existentialist
Answer: A
Q2) A danger in the ethic of care is that it might be interpreted to restore and legitimize the stereotype of women as care giving subordinates not deserving of moral autonomy.
A)True
B)False
Answer: True
Q3) Which of the following ethical theories takes essentially a free market view of ethics?
A)Moral absolutism
B)Deontology
C)Virtue ethics
D)Libertarianism
Answer: D
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Chapter 3: The Corporation and Public Policy: Expanding Responsibilities
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Q1) The Honest Leadership and Open Government Act of 2007 was part of the most comprehensive lobbying and ethics reform effort in the federal government in many years.
A)True
B)False
Answer: True
Q2) Which of the following statements is true of a company that adopts the stakeholder approach?
A)For a company adopting the stakeholder approach,shareholders are the only stakeholders.
B)For a company adopting the stakeholder approach,profit depends on the interplay between the corporation,government,and society.
C)For a company adopting the stakeholder approach,profit maximization and earning short-term profits are the primary goals.
D)For a company adopting the stakeholder approach,the only concern is to fulfill the categories of economic and legal responsibilities of Carroll's Social Responsibility Pyramid.
Answer: B
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Chapter 4: The American Legal System
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Q1) Which of the following statements is true about the doctrine of stare decisis?
A)It makes the law unstable and unpredictable.
B)It expects judges to mandatorily follow precedent while making decisions.
C)It offers the wisdom of the past and enhances efficiency.
D)It mandates that every case be resolved as though it were the first of its kind.
Q2) Substantive laws include the judicial system and the rules by which it operates.
A)True
B)False
Q3) In the context of law and equity,explain the evolution of courts of equity.
Q4) In a jury trial,the jurors in a panel are questioned by the judge or by the attorneys to determine if any individual is prejudiced about the case such that he or she could not reach an objective decision on the merits.This questioning process is called _____.
A)interrogatory
B)mens rea
C)voir dire
D)mini-trial
Q5) What are the objectives of law in society?
Q6) Distinguish between civil law and criminal law.
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Chapter 5: Constitutional Law and the Bill of Rights
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Q1) The _____ provides that the right of the people to be secure in their persons,houses,papers,and effects,against unreasonable searches and seizures,shall not be violated,and no Warrants shall issue,but upon probable cause.
A)Fourth Amendment
B)Fifth Amendment
C)First Amendment
D)Second Amendment
Q2) Which of the following refers to federalism?
A)The Constitution's provision for shared power among national,state,and local governments
B)The principle that federal laws are supreme if a conflict between a federal and state law arises.
C)The principle that the government cannot take private property without paying just compensation
D)The provision for the protection of personal freedoms of speech and religion from encroachment by the government
Q3) Give a brief account of the creation of the Constitution of the United States.
Q4) Briefly explain the role of the Equal Protection Clause.
Q5) Explain in detail the three broad classes of regulatory takings.
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Chapter 6: Contracts
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Q1) Contracts entered by minors are voidable contracts.
A)True
B)False
Q2) Anticipatory breach of contract occurs when a party,before performance is due,indicates by word or deed that she or he will not perform.
A)True
B)False
Q3) Which of the following exceptional circumstances admits parol evidence?
A)To prove circumstances that would validate a written contract
B)To delete terms from a complete written contract
C)To explain ambiguities in a written contract
D)To infer the terms of a contract in a one-sided manner
Q4) The point of nominal damages is to illustrate the wrongfulness of a breach.
A)True
B)False
Q5) Consideration is used by the courts to distinguish a contract from a gratuitous promise.
A)True
B)False
Q6) Describe some of the elements of a valid offer with examples.
Page 8
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Chapter 7: Business Torts and Product Liability
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Q1) Jude purchases a vacuum cleaner that is advertised as having certain distinctive cleaning properties.However,at the first use he realizes that the vacuum cleaner fails to function as promoted.In the context of warranty,which of the following statements is true?
A)There is a breach of implied warranty of fitness for a particular purpose.
B)There is a breach of implied warranty of merchantability.
C)There is a breach of express warranty.
D)There is a no breach of warranty as it is a case of puffing.
Q2) Which of the following statements is true of libel?
A)Libel,leaving a more permanent stain,generally requires a showing of actual harm.
B)Any dead person can be the victim of defamation.
C)Libel about a company's products or property often is treated as the tort of injurious falsehood.
D)Courts do not treat defamatory radio and television statements as forms of libel.
Q3) A warranty is simply a non-contract-based guarantee.
A)True
B)False
Q4) Explain the Magnuson-Moss Warranty Act.
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Page 9
Chapter 8: Government Regulation of Business
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Q1) Why are the Commerce Clause and states' police power potentially in conflict?
Q2) In the context of political process,what are the three main arguments that have emerged regarding market regulation by the government?
Q3) Which of the following acts forbids the use,cultivation,or possession of marijuana for any purpose?
A)The Harrison Narcotics Tax Act
B)The Controlled Substances Act
C)The Food,Drug,and Cosmetic Act
D)The Pure Food and Drug Act
Q4) Elaborate on the executive and congressional constraints on agencies.
Q5) Internal Revenue Service regulations are an example of _____ rules.
A)substantive
B)interpretative
C)legislative
D)procedural
Q6) Differentiate among the three types of rules enacted by administrative agencies.Describe the formal and informal rule making process of an agency.
Q7) Describe the three broad categories of the federal regulatory agencies' authority.
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Chapter 9: Business Organizations and Securities Regulation
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Q1) Which of the following acts prohibits broker voting unless specific instructions are received from the shareholder?
A)The Private Securities Litigation Reform Act
B)The Securities Exchange Act
C)The National Securities Markets Improvement Act
D)The Dodd-Frank Act
Q2) Describe the differences between the two classes of partners in a limited partnership.
Q3) Blue sky laws are primarily applicable to solely intrastate offerings.
A)True
B)False
Q4) Which of the following is true of the partnership form of business?
A)The vast majority of partnership agreements are written.
B)An assignee of a partnership interest has the right to participate in control and enjoys the status of partner.
C)The partners are not personally liable for the partnership's obligations should it default.
D)Events in the private lives of the partners can seriously impact the business venture.
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Chapter 10: Antitrust Law-Restraints of Trade
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Q1) A horizontal group boycott is a situation where competitors agree not to deal with a supplier,customer,or another competitor.
A)True
B)False
Q2) Which of the following forbids price discrimination,tying arrangements,mergers restraining commerce or tending to create a monopoly,and interlocking directorates?
A)The Clayton Act
B)The Sherman Antitrust Act
C)The Robinson-Patman Act
D)The Sarbanes-Oxley Act
Q3) In the 2007 Leegin case,the Supreme Court ruled that agreements specifying minimum resale prices must be analyzed under the rule of reason.
A)True
B)False
Q4) When competitors collude,conspire,or agree among themselves,they are engaging in vertical restraints of trade.
A)True
B)False
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Chapter 11: Antitrust Law-Monopolies and Mergers
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Q1) United States antitrust laws cannot be applied to foreign corporations doing business in the United States.
A)True
B)False
Q2) A merger involves the union of two or more enterprises wherein the property of all is transferred to the one remaining firm.
A)True
B)False
Q3) Which of the following statements about the Herfindahl-Hirschman Index (HHI) is true?
A)The smaller the HHI,the more likely the government will be concerned about the merger.
B)The larger the increase in the HHI,the less concentrated the market.
C)The greater the increase in the HHI,the less likely the government will be concerned about the merger.
D)The larger the HHI,the more concentrated the market.
Q4) The Sherman Act prohibits attempts to monopolize as well as monopoly itself.
A)True
B)False
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Chapter 12: Employment Law I: Employee Rights
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Q1) Which of the following statements is true of defined benefit pensions?
A)They are much more common than defined contribution plans.
B)They provide specified monthly payments upon retirement.
C)They are less expensive to manage from the employer's perspective.
D)They shift the risk from employer to employee.
Q2) Under _____,an employer will be liable for acts outside the scope of employment.
A)respondeat superior
B)negligence liability
C)restrictive covenant
D)qualified privilege
Q3) In the context of drug testing,which of the following forbids unreasonable searches and seizures?
A)The Fourth Amendment to the U.S.Constitution
B)The First Amendment to the U.S.Constitution
C)Title VII of the Civil Rights Act of 1964
D)National Defense Authorization Act
Q4) State the common law doctrine of "employment at will" and explain the limitations that have eroded its influence.
Q5) What are the primary objectives of the Occupational Safety and Health Act?
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Q6) Briefly explain the American Immigration Law.
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Chapter 13: Employment Law II: Discrimination
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Q1) Private clubs are not exempt from Title VII of the Civil Rights Act of 1964.
A)True
B)False
Q2) Which of the following statements about Title VII of the Civil Rights Act of 1964 is true?
A)It forbids discrimination in hiring,firing,and all aspects of the employment relationship.
B)Private-sector employees are not covered under Title VII.
C)It prohibits religious organizations from discriminating in employment on the basis of religion.
D)Private clubs are not exempt from Title VII.
Q3) Differences in wages and conditions of employment are permissible under the Civil Rights Act of 1964 where those differences are the result of a bona fide seniority system.
A)True
B)False
Q4) Define quid pro quo sexual harassment and hostile environment sexual harassment.
Q5) In the context of employment discrimination,how is a plaintiff's prima facie case of disparate treatment confirmed?
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Chapter 14: Employment Law III: Labor-Management Relations
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Q1) The National Labor Relations Board:
A)provides protection to independent contractors.
B)allows employers to discharge employees if they are part of any labor organizations.
C)covers railroad and airline employees.
D)investigates and adjudicates charges of unfair labor practices.
Q2) Refusal to bargain over a permissive bargaining subject constitutes a National Labor Relations Act violation.
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) The practice of union organizers applying for jobs with the intent of unionizing the other employees from the inside is referred to as _____.
A)salting
B)picketing
C)crowdsourcing
D)whistleblowing
Q5) What are the implications of a union as an exclusive bargaining agent?
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Chapter 15: Consumer Protection
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Q1) Which of the following is true of the Federal Trade Commission?
A)It has the authority to impose criminal sanctions on those found guilty as soon as a citizen complaint is filed.
B)It operates as a miniature government with powerful quasi-legislative (rule-making) and quasi-judicial (adjudication) roles.
C)It does not have the authority to enforce privacy provisions in laws addressing the use of consumer credit reports.
D)It is solely responsible for enforcing many finance laws,including the Electronic Fund Transfer Act,the Equal Credit Opportunity Act,and the Fair Credit Billing Act.
Q2) Describe the elements generally adopted by the legal community in defining fraud.
Q3) Describe in brief the functions of the Consumer Financial Protection Bureau (CFPB).
Q4) Briefly describe the three important forms of bankruptcy action.
Q5) List the methods used by the Consumer Product Safety Commission (CPSC) to enforce its rules.
Q6) Briefly describe the doctrine of unconscionability.
Q7) Explain the purpose of the Electronic Fund Transfer Act (EFTA).
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Page 17
Chapter 16: International Ethics and Law
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Q1) What is the purpose of the Paris Convention,originally signed by 11 countries in 1883?
Q2) Member countries in the World Trade Organization represent only capitalist governments.
A)True
B)False
Q3) When determining international public law,a _____ is derived from consistent behavior over time that is accepted as binding by the countries that engage in that behavior.
A)clause
B)comity
C)treaty
D)custom
Q4) Arbitration is never used in international trade disputes.
A)True
B)False
Q5) A licensing agreement is made up of a number of franchisee agreements.
A)True
B)False
Q6) Define the concept of "comity" as it is used in international law.
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Chapter 17: Environmental Protection
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Q1) Briefly explain nuisance,trespass,and strict liability.
Q2) 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
Q3) Environmental protection in the United States is just a matter of social policy and is free from political influences.
A)True
B)False
Q4) Describe in brief some of the challenges faced while protecting a species under the Endangered Species Act.
Q5) The Brownfields Act provides liability protection for prospective purchasers and contiguous property owners.
A)True
B)False
Q6) Discuss the cap-and-trade program.
Q7) What are the two national goals established by the Clean Water Act?
Q8) Describe the role of tax laws in environmental protection in the United States.
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Chapter 18: Internet Law and Ethics
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Q1) Punishment for violation of the Computer Fraud and Abuse Act of 1986 is limited to fines.
A)True
B)False
Q2) Which of the following federal acts establishes both civil and criminal penalties for violations of its provisions?
A)The CAN-SPAM Act
B)The PROTECT Act
C)The U.S.SAFE WEB Act
D)The Anti-Phishing Act
Q3) In the international context,_____ refers to judicial personal jurisdiction.
A)jurisdiction to enforce
B)jurisdiction to prescribe
C)jurisdiction to legislate
D)jurisdiction to adjudicate
Q4) Explain in brief a free speech issue in the context of online pornography.Describe the role of the judiciary and the Congress in handling this issue.
Q5) Identify and discuss an ethical issue raised by the global nature of the Internet.
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