Legal Aspects of Management
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Course Introduction
Legal Aspects of Management introduces students to the fundamental legal principles and frameworks that shape the business environment. The course covers topics such as contract law, employment law, intellectual property rights, corporate governance, and regulatory compliance. Through case studies and real-world examples, students will explore how legal considerations impact managerial decisions and organizational operations. By understanding the interplay between law and management, students will be equipped to identify potential legal risks, ensure compliance, and make informed decisions that align with both business objectives and legal requirements.
Recommended Textbook
The Legal Environment of Business 13th Edition by Roger E. Meiners
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22 Chapters
9532 Verified Questions
9532 Flashcards
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Page 2
Chapter 1: Todays Business Environment: Law and Ethics
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327 Verified Questions
327 Flashcards
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Sample Questions
Q1) Stare decisis creates a more just legal system by:
A) neutralizing the prejudices of individual judges
B) preventing judges from being appointed for life
C) neutralizing the prejudices of individuals in a jury
D) all of the other specific choices are correct
E) none of the other specific choices are correct
Answer: A
Q2) Which of the following concerns legal wrongs committed against the government:
A) tort law
B) procedural law
C) ethical law
D) private law
E) none of the other choices are correct
Answer: E
Q3) State constitutions, unlike the federal Constitution, tend to be very short and have few details.
A)True
B)False
Answer: False
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Page 3
Chapter 2: The Court Systems
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431 Verified Questions
431 Flashcards
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Sample Questions
Q1) If a court rules in a particular case in which it is later found not to have jurisdiction:
A) the court will be fined
B) the plaintiff will be fined
C) the judgment of the court will be declared null and void upon appeal
D) the judgment of the court will be suspect in all future cases
E) the judgment of the court will stand
Answer: C
Q2) In Erie v. Tompkins, where Tompkins was hit by a New York train in Pennsylvania, the Supreme Court held that federal common law, as first announced in Swift v. Tyson, was to be abandoned in favor of state common law.
A)True
B)False
Answer: True
Q3) In some matters, such as a dispute between two state governments, the U.S. Supreme Court has original and exclusive jurisdiction.
A)True
B)False
Answer: True
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4
Chapter 3: Trials and Resolving Disputes
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509 Verified Questions
509 Flashcards
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Sample Questions
Q1) Attorneys get a change to explain their clients' view of the case to the jury, tell the tell the jury who the witnesses will be, and provide a roadmap of the trial during the:
A) state decisis statements
B) closing statements
C) opening statements
D) voir dire statements
E) none of the other choices are correct
Answer: C
Q2) Attorneys get a change to explain their clients' view of the case to the jury, tell the tell the jury who the witnesses will be, and provide a roadmap of the trial during the: A) state decisis statements
B) closing statements
C) pre-trial statements
D) voir dire statements
E) none of the other choices are correct
Answer: E
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5
Chapter 4: The Constitution: Focus on Application to Business
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Sample Questions
Q1) In Consolidated Edison Co. v. Public Service Comm., the New York utility commission ruled that the electric company could not send its customers information in support of nuclear power. The Supreme Court held that this was unconstitutional because:
A) the New York Commission was restricting the content of the information distributed
B) the New York Commission was restricting the time the information was distributed
C) the New York Commission was restricting the place the information distributed
D) the New York Commission was not restricting the content of the information distributed
E) none of the other choices are correct
Q2) When a company challenges a regulation restricting commercial speech, the state bears the burden of showing the regulation is justified.
A)True
B)False
Q3) The first ten amendments to the Constitution are the Bill of Rights.
A)True
B)False
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Chapter 5: Criminal Law and Business
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321 Verified Questions
321 Flashcards
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Sample Questions
Q1) The use of whistleblower "hotlines" that allow employees to report possible legal problems with a company anonymously:
A) violate Fourth Amendment search and seizure rules
B) are used in the U.S.
C) are used in France and other European countries, which is where the practice began
D) are used in both the U.S. and European countries such as France
E) none of the other choices
Q2) The Sentencing Guidelines for criminal convictions must be applied without variation.
A)True
B)False
Q3) Mens rea is:
A) criminal reason
B) criminal guilt
C) final judgment
D) thoughtful crime
E) none of the other choices are correct
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Chapter 6: Elements of Torts
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Sample Questions
Q1) Constitutional privilege applies only to federal judges for statements they make from the bench.
A)True
B)False
Q2) Torts are common law crimes.
A)True
B)False
Q3) In an intentional tort, the person who committed the tort must have wanted the result to occur that did, in fact, happen.
A)True
B)False
Q4) You tell people that someone you dislike is a child molester. This is not true. You most likely committed the tort of:
A) libel
B) assault
C) invasion of privacy
D) malicious prosecution
E) none of the other choices
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Page 8
Chapter 7: Business Torts and Product Liability
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361 Verified Questions
361 Flashcards
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Sample Questions
Q1) The Restatement (Third) of Torts on product liability says that when considering a defective product the courts should use:
A) a cost-benefit analysis
B) strict liability when any injury is inflicted
C) an express warranty rule
D) the rule of negligence
E) none of the other choices
Q2) In Parish v. ICON, where a person was severely injured when jumping on a trampoline and sued its maker and the maker of a safety net for failure to warn, the Iowa high court held that:
A) the makers had no duty to warn because the danger was obvious
B) the makers had a poorly designed set of instructions
C) the case could be dismissed because the warnings were adequate
D) produced products that should never have been placed on the market because they are so dangerous that warnings are unhelpful
E) none of the other choices
Q3) In a suit for intentional misrepresentation, punitive damages may be awarded.
A)True
B)False
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Page 9
Chapter 8: Real and Personal Property
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287 Verified Questions
287 Flashcards
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Sample Questions
Q1) In Stewart v. Federated Department Stores, a woman was murdered in a Bloomingdale's parking lot in Connecticut. The court held the store:
A) met its duty of care and so was not liable
B) was strictly liable to the woman
C) was negligent in not having a security guard at the time of the murder
D) would have been negligent if it had not had a security guard, but it had one and so was not liable despite the murder
E) intentionally harmed the woman
Q2) A covenant that is attached to all houses in a neighborhood built in the 1950s states that the houses may not be sold to "members of any minority race." This covenant is:
A) enforceable since it was voluntarily agreed to by the buyers and sellers
B) not favored by public policy and so will expire when the houses are torn down
C) in violation of public policy and so not enforceable
D) in violation of public policy and, under federal law, requires home owners to pay $1,000 a year fines until removed
E) none of the other choices
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Chapter 9: Intellectual Property
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407 Verified Questions
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Sample
Questions
Q1) ____ occurs when another person who, at any time after the owner's mark has become famous, commences use of a mark or trade name in commerce that is likely to cause dilution by blurring or dilution by tarnishment of the famous mark, regardless of the presence or absence of actual or likely confusion, of competition, or of actual economic injury.
A) infringement
B) patent violation
C) battery
D) counterfeiting
E) none of the other choices are correct
Q2) Intellectual property is also called intangible property.
A)True
B)False
Q3) For something to be a trade secret, it may not be known by anyone but the inventor of the secret.
A)True
B)False
Q4) In case of counterfeiting, the only remedy is monetary damages.
A)True
B)False
Page 11
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Chapter 10: Contracts
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Sample Questions
Q1) Which of the following is a type of damage award that may be granted by a court as a remedy for breach of contract:
A) compensatory
B) expectancy
C) liquidated
D) nominal
E) all of the other specific choices are correct
Q2) You are hired to mow a lawn on Saturday. Being busy, you hire your brother to do the job for you and get paid for it. This is:
A) assignment
B) rescission
C) repudiation
D) beneficiary
E) none of the other choices
Q3) A void contract never was or will be a valid contract.
A)True
B)False
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Page 12
Chapter 11: Domestic and International Sales
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Sample Questions
Q1) If the buyer is willing to accept nonconforming goods:
A) the goods must only be paid for if the nonconformance does not interfere with function
B) the goods need not be paid for
C) the goods must be paid for
D) buyers may never accept nonconforming goods
E) the contract must be rewritten
Q2) If the parties to a sale under the UCC do not specify when the title to the goods passes, then, assuming the goods did not have to be moved, title passes to the buyer when:
A) the seller recognizes "payment in full"
B) the seller ships the title documents and goods
C) the buyer inspects the goods
D) the buyer makes "substantial" payment
E) any of the other choices
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
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Page 13
Chapter 12: Business Organizations
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459 Flashcards
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Sample
Questions
Q1) The officers and directors of corporations are not provided Fifth Amendment protection against self incrimination for business-related matters.
A)True
B)False
Q2) Sales of ____ and ____ can be difficult because determining the market value of the asset may be difficult.
A) sole proprietorship; double corporation
B) close corporation; double proprietorship
C) close corporation; publicly traded corporation
D) sole proprietorship; publicly traded corporation
E) none of the other choices are correct
Q3) Under traditional common law rules, if you wanted to sue a partnership you had to:
A) sue each partner individually
B) sue the partnership as a group
C) sue the state on behalf of the partnership
D) have the state sue the partnership
E) wait until the partnership was incorporated to sue
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Page 14
Chapter 13: Negotiable Instruments, Credit, and Bankruptcy
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Sample Questions
Q1) Under a Chapter 13 bankruptcy the:
A) debtor keeps the estate's property
B) debtor is relieved of all property
C) estate is administered by a court-appointed trustee only
D) debtor keeps the estate's property and the estate is administered jointly with a court-appointed trustee
E) debtor is relieved of most property and estate is administered by a court-appointed trustee only
Q2) Refer to Fact Pattern 12-1. Assuming that Gena pledges not only her pasta makers, but also her 1/2 acre piece of property in Montclair, NJ. Once she defaults on her loan payments to First Fidelity the bank may:
A) start judicial proceedings against her
B) seize all of her property to settle the debt
C) seize her non-exempt property to settle the debt
D) start judicial proceedings against her and seize her non-exempt property to settle the debt
E) the bank cannot do anything until it files its claim with the governor of the state
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Page 15
Chapter 14: Agency and the Employment Relationship
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Sample Questions
Q1) In Coelho v. Posi-Seal the Connecticut Supreme Court found that statements by the company president to an employee that he had good job security, but later fired him, was a breach of implied contract for continued employment.
A)True
B)False
Q2) Agents have a fiduciary duty to their principals.
A)True
B)False
Q3) In Bearden v. Wardley Corp., where real estate agent Gritton cheated Bearden on a house deal, the court held that his employer, Wardley, was liable for his actions because it failed to monitor Gritton's improper actions sufficiently.
A)True
B)False
Q4) To establish an agency relationship:
A) the procedure in state statutes must be followed
B) there must be a written contract between the parties
C) the principal must file an agency charter with the appropriate state agency
D) all of the other specific choices
E) none of the other choices
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Chapter 15: Employment and Labor Regulations
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539 Flashcards
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Sample Questions
Q1) Before the Norris-La Guardia Act, federal courts:
A) could not interfere in labor-management relations
B) showed no interest in labor-management relations
C) could issue injunctions to stop labor strikes
D) refused to interfere in labor-management disputes due to the Interstate Commerce Clause
E) none of the other choices
Q2) Occupational licensing requires permission from a regulating agency to operate certain businesses.
A)True
B)False
Q3) The National Labor Relations Board is composed of ten members appointed by the Secretary of Labor.
A)True
B)False
Q4) Under the Family and Medical Leave Act, employers must provide workers with up to twelve weeks of unpaid leave after childbirth or adoption.
A)True
B)False
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Chapter 16: Employment Discrimination
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Sample Questions
Q1) If the EEOC believes a Title VII complaint has at least some merit, they give the person bringing the complaint a "right-to-sue" letter.
A)True
B)False
Q2) Comparing the race and sex composition of a company's workforce to the relevant labor market is an aspect of affirmative action called underutilization analysis.
A)True
B)False
Q3) Which of the following would not be a violation of the Rehabilitation Act or the Americans with Disabilities Act, because it goes beyond the scope of the legislation?
A) using standardized tests that screen out people with disabilities
B) refusing to hire job applicants because they have a history of drug abuse
C) asking job applicants if they have disabilities
D) not hiring a disabled person because the bathrooms cannot accommodate wheelchairs
E) all of the other choices are likely illegal
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18
Chapter 17: The Regulatory Process
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Sample Questions
Q1) The Interstate Commerce Commission was the:
A) first modern federal regulatory agency
B) the most famous modern federal regulatory agency
C) the latest modern federal regulatory agency
D) the biggest modern federal regulatory agency
E) the smallest modern federal regulatory agency
Q2) Which of the following is a way that Japanese agencies may use to exert regulatory authority over businesses:
A) direction
B) request
C) warning
D) encouragement
E) all of the other specific choices are correct
Q3) Which of the following is an example of a sanction offered by the APA:
A) assessment of damages, reimbursement, restitution, compensation, costs, charges, or fees
B) requirement, revocation, or suspension of a license
C) imposition of a penalty or fine
D) destruction, taking, seizing, or withholding of property
E) all of the other specific choices are correct
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Chapter 18: Securities Regulation
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Sample Questions
Q1) A prospectus must provide background information about the managerial experience and compensation packages of the promoters of a security.
A)True
B)False
Q2) The first state to have securities regulation was:
A) Illinois
B) Ohio
C) California
D) Texas
E) none of the other choices are correct
Q3) The regulations adopted by the SEC under the Investment Advisers Act provide regulation of professionals working in the securities industry.
A)True
B)False
Q4) A proxy is when the vote of a shareholder is provided to be voted a certain way on a certain issue.
A)True
B)False
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Page 20
Chapter 19: Consumer Protection
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Sample Questions
Q1) The Credit Card Accountability Responsibility and Disclosure Act (Credit CARD Act) imposes restriction on how often interest rates on cards may be changed.
A)True
B)False
Q2) Which of the following is NOT a prohibited basis under the Equal Credit Opportunity Act:
A) marital status
B) sex
C) age
D) religion
E) all of the other specific choices are prohibited bases
Q3) The government agency charged with monitoring food and drug safety is the:
A) Consumable Products Administration
B) Food Safety Administration
C) Food and Drug Regulation Agency
D) Food and Dangerous Drug Administration
E) none of the other choices are correct
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Chapter 20: Antitrust Law
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Sample Questions
Q1) In U.S. v. Trenton Potteries Co., competitors openly fixed prices and restrained sales. The Supreme Court held that:
A) Section 2 of the Clayton Act was unconstitutional
B) price fixing is per se illegal
C) cartels that serve to lower consumer prices may be legal
D) as a potters association they were exempt from the antitrust laws
E) horizontal groupings that do not involve mergers are not illegal
Q2) The Supreme Court held it to be legal, under a rule of reason in the Broadcast Music case, for the rights to play copyrighted music to be sold under a blanket licensing agreement that prevented negotiation over fees.
A)True
B)False
Q3) The 1936 legislation known as the Robinson-Patman Act, amended which law?
A) the Clayton Act
B) the Sherman Act
C) the Lanham Act
D) the Kellogg-Brian Pact
E) the Federal Trade Commission Act
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Chapter 21: Environmental Law
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Sample Questions
Q1) Waste water that has been treated at a sewage treatment plant may not be discharged into a river or lake.
A)True
B)False
Q2) Under the ____, the EPA and state environmental agencies require industrial polluters to list he amount and type of their discharges.
A) National Pollutant Control System
B) National Chemical in Waterways Elimination System
C) National Clean Water Plan
D) National Dirty Water Elimination System
E) none of the other choices are correct
Q3) While most water pollution sources are regulated, publicly owned sewage treatment works are not.
A)True
B)False
Q4) The Clean Water Act orders the EPA to set a technical standard for pollution control for each industry.
A)True B)False
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Chapter 22: The International Legal Environment of Business
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Sample Questions
Q1) One way to reduce the risk of currency fluctuation is to specify ahead of time that payment should be made in a stable, trustworthy currency.
A)True
B)False
Q2) The legal doctrine of foreign sovereign immunity is concerned with:
A) the ability of foreign countries create new courts
B) the degree to which foreign countries maintain trade laws
C) barring foreign investors from collecting damages in host countries
D) barring US courts from exercising jurisdiction over foreign governments or their agencies
E) none of these
Q3) An ad valorem tariff is:
A) duty or tax levied by a government on an exported good
B) fixed tax or duty on each unit of the product
C) tax based on a percentage of the price of the product
D) applied only to such products as munitions, alcohol, and tobacco products
E) none of the other choices
Q4) The GATT organization was renamed the International Trade Organization.
A)True B)False
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