Legal Environment of Business
Exam Materials
Course Introduction
Legal Environment of Business explores the fundamental legal principles and frameworks that impact the operation of businesses in both domestic and international contexts. The course provides an overview of the American legal system, sources of law, and the structure of courts, while emphasizing the legal concepts relevant to business, such as contracts, torts, agency, employment law, intellectual property, and government regulation. Students will analyze case studies and real-world scenarios to understand how laws influence ethical decision-making, risk management, and strategic planning. By the end of the course, students will be equipped to recognize and respond to the legal challenges facing todays businesses, helping them navigate the dynamic intersection of law and commerce.
Recommended Textbook Law and Ethics in the Business Environment 8th Edition by Terry Halbert
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9 Chapters
148 Verified Questions
148 Flashcards
Source URL: https://quizplus.com/study-set/212
Page 2
Chapter 1: Law, Ethics, Business: An Introduction
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21 Verified Questions
21 Flashcards
Source URL: https://quizplus.com/quiz/3124
Sample Questions
Q1) Discuss the differences in utilitarianism and virtue ethics in making a decision.
Answer: According to utilitarianism, in any situation, the alternative that produces the greatest overall good should be chosen. It lends itself to a very business-like approach to the decision. A cost-benefit analysis should be done, not just for the organization making the decision, but for all who will be affected by the decision. Virtue ethics has a more internal focus with an analysis of the mission statement, values and culture of an organization to make a decision that creates the best "fit" with the organization.
Q2) Assuming a business ethical dilemma, which statement best illustrates Gilligan approach suggested in her theory of "The Ethics of Care"?
A) individual rights and justice for all
B) applies only to women and not men
C) care and responsibility to others
D) obedience to independent moral rules or duties
Answer: C
Q3) From where do ethical preferences originate?
Answer: Ethical preferences originate not from legislators or judges, but from an individual's own critical consciousness.
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Page 3
Chapter 2: The Duty of Loyalty: Whistleblowing
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15 Verified Questions
15 Flashcards
Source URL: https://quizplus.com/quiz/3125
Sample Questions
Q1) According to the Montana Wrongful Discharge from Employment Act, what are the three elements of a wrongful discharge?
Answer: (1) It was in retaliation for the employee's refusal to violate public policy or for reporting such violation.
(2) The employee had completed the employment probationary period and the discharge was not for good cause.
(3) The employer violated the express provisions of its own written personal policy.
Q2) Under the legal doctrine of "employment at will" an employee can be lawfully terminated from her job for:
I. wearing a shirt that clashes with her suit
II. any non-discriminatory reason
III. complaining about illegal activity in the workplace
IV. only for good cause
A) I only
B) II only
C) c. I and II
D) d. III and IV
Answer: C
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4
Chapter 3: Privacy and Technology
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20 Verified Questions
20 Flashcards
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Sample Questions
Q1) Privacy rights are triggered under the Fourth Amendment:
A) when a corporation has authorized an agent with direct authority to perform an electronic search of an employee's e-mail account.
B) upon issuance of a subpoena duces tecum to bring electronic data (e-mails, files, etc.) including electronic metadata such as headers, directional information, and other such useful tracking data.
C) when the government is conducting a search.
D) during an archival search of e-mails on a corporation's server.
Answer: C
Q2) According to the article, Can They Do That? By Lew Maltby:
A) A job candidate who has been arrested will probably not be disqualified unless the candidate was found guilty.
B) Psychological tests are a good way to determine a job candidate's honesty.
C) Employees who are being treated unfairly can protect themselves by joining a union.
D) Credit score can keep you from getting a job, even if it doesn't involve handling money.
Answer: D
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Chapter 4: Valuing Diversity: Stereotyping v Inclusion
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15 Verified Questions
15 Flashcards
Source URL: https://quizplus.com/quiz/3127
Sample Questions
Q1) What must a plaintiff show to make a prima facie case of hostile environment sexual harassment?
Q2) Describe the term heightened scrutiny. What do the courts use to determine which type of scrutiny to use?
Q3) According to sociologists, what is society's image of a good mother? A good father? How do those images impact how parents who chose to balance their work life with family (i.e. work part time) are viewed?
Q4) Title VII specifically addresses the issues of affirmative action, sexual harassment, and same-sex marriage.
A)True
B)False
Q5) Employment practices without business justification applied to all employees that result in a less favorable effect for one group than for another group may state a claim for:
A) disparate treatment
B) disparate impact
C) inclusion
D) reasonable accommodation
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Chapter 5: Workers Rights as Human Rights: Health and
Safety in the Global Workplace
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15 Verified Questions
15 Flashcards
Source URL: https://quizplus.com/quiz/3128
Sample Questions
Q1) Explain what the Workers Rights Consortium is and what it has done to combat sweatshops.
Q2) Explain how worker's compensation in the U.S. works.
Q3) Typically individual stockholders are not held responsible for the actions of a corporation. Exceptions usually relate to comingling of funds, underinsuring, or similar actions by the corporate leadership. This is called:
A) risking liability
B) piercing the corporate veil
C) the privilege of the stockholders
D) free market trading of stocks
Q4) When an employee files a worker's compensation claim:
A) The employee must prove the company was negligent.
B) The employer has the right to raise traditional defenses to negligence to defeat the claim.
C) Both a. and b.
D) Neither a. not b.
Q5) According to Henry Shue, what are the six factors required to make a cost a true harm?
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Q6) Discuss how corporate criminal liability has been handled by OSHA since 1970.
Chapter 6: Environmental Law and Justice: Responsibility and
Survival
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16 Verified Questions
16 Flashcards
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Sample Questions
Q1) A "green tax" uses government taxing power to benefit the environment.
A)True
B)False
Q2) According to Alice Kaswan, environmental justice has had:
A) an extreme impact on environmental law
B) a significant impact on environmental law
C) a modest impact on environmental law
D) no impact on environmental law
Q3) Discuss the obligations of human beings to Mother Earth according to the universal declaration of rights of Mother Earth.
Q4) The Fifth Amendment to the Constitution explicitly protects private property owners' economic interests. Explain how this amendment affects owners of private property.
Q5) What is environmental justice? What started the movement in the United States?
Q6) The Kyoto Protocol is an international treaty to reduce greenhouse admissions, signed by over 200 countries including the United States.
A)True
B)False
Q7) Explain the Crisis of Agrobiodiversity as explained by Carmen G. Gonzalez.
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Chapter 7: Marketing and Technology: Choice and Manipulation
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15 Verified Questions
15 Flashcards
Source URL: https://quizplus.com/quiz/3130
Sample Questions
Q1) Identify the true statement(s) regarding freedom of speech:
I. It was not until the 1920s that legal doctrines protecting speech when offensive began to be recognized by the courts.
II. In the First National Bank v. Bellotti case, the Supreme Court struck down a state law prohibiting a corporation to advertise to influence voters on issues that did not "materially affect" its business.
III. In the Virginia Board case, the U.S. Supreme Court failed to link the "right to receive information and ideas" with the traditional values that underlie free speech.
IV. According to the Central Hudson decision, "protected commercial speech" cannot be regulated.
A) I & II only
B) II & III only
C) II, III and IV only
D) I, II III, and IV
Q2) Discuss some of the ways the FTC has curbed online marketing efforts.
Q3) Discuss how the fast food industry's response to the obesity epidemic in children has changed since the publication of the Surgeon General's report.
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Page 9
Chapter 8: Allocating Risk and Responsibilities in the Global Marketplace:
Products Liability
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15 Verified Questions
15 Flashcards
Source URL: https://quizplus.com/quiz/3131
Sample Questions
Q1) The most notable exception to caveat emptor was for
A) Food
B) Automobiles
C) Clothing
D) Shoes
Q2) What did the Food Safety Modernization Act (FSMA) do? Has it accomplished what it should have? Why or why not?
Q3) To win a suit for negligence, a plaintiff must establish that the defendant:
I. breached its duty of care
II. created an unreasonable risk of harm
III. acted with total disregard to the harm that could result
IV. behavior was the proximate cause of the plaintiff's injuries
A) I and II only
B) II and III only
C) I, II and IV only
D) I, II, III and IV
Q4) Discuss Sugarman's "Performance-based regulation." Is this a viable means to create safer products or is it unnecessary government interference?
Q5) Explain the features of Section 402A of the Restatement of Torts (Second).
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Chapter 9: Ownership, Creativity and Innovation: Intellectual Property
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16 Verified Questions
16 Flashcards
Source URL: https://quizplus.com/quiz/3132
Sample Questions
Q1) Discuss the Fair Use Doctrine. What are the four statutory factors used to determine if a use is fair?
Q2) Trade secrets are registered just like trademarks.
A)True
B)False
Q3) Why was the Digital Millennium Copyright Act passed?
Q4) Give examples of improper ways to learning a trade secret under the Uniform Trade Secrets Act. Give an example of a way that is not considered improper or wrong. Improper ways of learning a trade secret include theft, bribery, misrepresentation, breach or inducement of a breach of a duty to maintain secrecy, or espionage. Figuring out a recipe by taste trials, known as "reverse engineering", in not considered wrongful.
Q5) Discuss how intellectual property is different from other kinds of property.
Q6) What must a plaintiff prove to establish copyright infringement?
Q7) American copyright law creates a bundle of rights for the owner, including the right to reproduce, distribute, perform, display, or adapt the work.
A)True
B)False
Page 11
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