Legal Environment of Management Practice Questions
Course Introduction
The Legal Environment of Management explores the foundations of law as they pertain to business operations and managerial decision-making. Students gain insight into the structure of the American legal system, sources of law, and significant legal principles affecting businesses, such as contracts, torts, agency, employment law, and the regulatory environment. The course emphasizes ethical considerations and risk management, empowering future managers to identify legal challenges, understand their obligations, and make informed choices that promote compliance and organizational success.
Recommended Textbook
Business Its Legal Ethical and Global Environment 10th Edition by Marianne M. Jennings
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21 Chapters
2597 Verified Questions
2597 Flashcards
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Page 2
Chapter 1: Introduction to Law
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108 Verified Questions
108 Flashcards
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Sample Questions
Q1) The CISG is another name for the UCC.
A)True
B)False Answer: False
Q2) Treaties are a source of international law.
A)True
B)False Answer: True
Q3) Violations of civil laws can result in imprisonment.
A)True
B)False Answer: False
Q4) Which of the following is not a source of private law?
A) lease
B) employment agreement
C) ordinance
D) marriage prenuptial agreement
Answer: C
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Page 3
Chapter 2: Business Ethics and Social Responsibility
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118 Verified Questions
118 Flashcards
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Sample Questions
Q1) Whether everyone else does it is one method for evaluating the ethics of a particular course of action.
A)True
B)False
Answer: False
Q2) Which school most parallels the Friedman model for social responsibility?
A) inherence school
B) enlightened self-interest school
C) invisible hand school
D) social responsibility school
Answer: A
Q3) "If you think what we're doing now is bad, you should have seen 10 years ago at this company..." is an example of:
A) ethical analysis.
B) rationalization.
C) comparative or relative ethics.
D) both a and c
Answer: B
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Chapter 3: The Judicial System
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121 Verified Questions
121 Flashcards
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Sample Questions
Q1) When would a business selling merchandise over the Internet be required to defend a lawsuit in a state in which it had no offices?
Answer: Something more than Internet contact is needed to subject a cyberspace company to the jurisdiction of courts in the states where it has customers: the presence of inventory, property ownership, or the presence of salespeople would be sufficient.
Q2) Sarah Sajak was sexually harassed at work. She filed a claim with the EEOC under Title 42 of the United States Code. The EEOC has given her a right to sue letter, a requirement for her to be able to bring suit for damages for the harassment. In which court must Sarah file her claim?
A) State trial court
B) Federal administrative court
C) Federal district court
D) Federal court of appeals since the agency has heard the case
E) none of the above
Answer: C
Q3) Name three courts in the federal system that are not courts of general jurisdiction. Answer: Bankruptcy court Court of claims Indian Tribal Court
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Page 5
Chapter 4: Managing Disputes: Alternative Dispute
Resolution and Litigation Strategies
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138 Verified Questions
138 Flashcards
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Sample Questions
Q1) The best means for obtaining access to a defendant company's email in litigation over an atmosphere of harassment is:
A) deposition.
B) summons.
C) request for production.
D) none of the above
Q2) Depositions are generally taken in the courtroom.
A)True
B)False
Q3) Explain the differences between arbitration and litigation.
Q4) E-mail cannot be obtained during discovery.
A)True
B)False
Q5) Mediation is:
A) the same as arbitration.
B) used frequently in international disputes.
C) regulated by the American Arbitration Association.
D) none of the above
Q6) List the information that will be required to file a valid complaint on a breach of contract suit. Page 6
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Page 7
Chapter 5: Business and the Constitution
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118 Verified Questions
118 Flashcards
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Sample Questions
Q1) Police power is:
A) the states' authority to bypass the Fifth Amendment.
B) the states' authority to conduct searches under the Fourth Amendment.
C) government agencies' authority to conduct a search of private property at any time.
D) the states' power to pass laws to promote public welfare and health and safety .
Q2) Under the Commerce Clause, the authority to regulate foreign commerce is given to:
A) Congress.
B) the executive branch.
C) the individual states.
D) only the Senate.
Q3) Advertising by professionals is permitted because of First Amendment protections.
A)True
B)False
Q4) Substantive due process is the same as procedural due process.
A)True
B)False
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Chapter 6: Administrative Law
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137 Verified Questions
137 Flashcards
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Sample Questions
Q1) The 30-day comment period can be waived for emergency rulemaking.
A)True
B)False
Q2) The National Park service withdrew its proposed rules on the use of snowmobiles in national parks. Describe any legal issues that might exist in its withdrawal of the rules.
Q3) The decision of an administrative law judge can be appealed to the agency heads.
A)True
B)False
Q4) A reverse FOIA suit is:
A) one brought by an administrative agency.
B) a suit to stop disclosure of information.
C) not available at the federal level.
D) a suit brought by an agency against another agency.
Q5) Where could a business find notices of proposed rules?
A) The Code of Federal Regulations
B) The Federal Register
C) industry trade publications
D) both b and c
Q6) Why is the Code of Federal Regulations not solely online to save money and time?
Page 9
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Chapter 7: International Law
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93 Verified Questions
93 Flashcards
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Sample Questions
Q1) U.S. securities laws would not apply to countries selling securities in the United States under the doctrine of sovereign immunity.
A)True
B)False
Q2) Nationalization is a process of eminent domain.
A)True
B)False
Q3) Sovereign immunity:
A) applies to U.S. businesses here if they are engaged in international transactions.
B) applies to commercial transactions by private foreign firms.
C) does not apply to clear violations of international law by governments engaged in commercial transactions.
D) means each country is equal in its authority over its own laws and operations.
Q4) The act of state doctrine precludes outside interference in expropriation.
A)True
B)False
Q5) Why are pirates so difficult to prosecute?
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Chapter 8: Business Crime
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105 Verified Questions
105 Flashcards
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Sample Questions
Q1) Jason Ormand was arrested on suspicion of sexual assault. The arresting officers did not give Jason his Miranda warnings. Jason confesses to the assault. The DNA evidence taken from the victim shows with 99% certainty that Jason was her attacker.
A) Because of the violation of Jason's rights in the officers' failure to give the Miranda warnings, the case must be dismissed.
B) The case can still proceed with the DNA evidence.
C) The case can proceed but only with the victim's testimony.
D) none of the above
Q2) Under the sentencing guidelines the Justice Department can agree to a non-prosecution agreement (NPA), but not to a deferred-prosecution agreement (DPA).
A)True
B)False
Q3) Economic pressure is generally not a reason for corporate crime.
A)True
B)False
Q4) The exceptions for obtaining warrants include evidence in "plain view."
A)True
B)False
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Chapter 9: Business Torts
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Sample Questions
Q1) Public figures:
A) can never have an action in defamation.
B) lose their defamation action rights if the remark or information is part of a story.
C) can seek a retraction, but can never recover damages for defamation.
D) must establish malice in order to recover damages for defamation.
Q2) In an opinion column published in wallstreetbuzz.com, a columnist wrote, "James Jackson, CEO of Blain Investments, now posting an $8 billion write-down, has robbed shareholders blind through his accounting slights of hand. Jackson insists that he has scruples. I don't know about that but if he does have scruples you can bet they belong to somebody else." The columnist:
A) has committed the tort of libel.
B) is protected from defamation liability under the opinion/analysis quasi-privilege.
C) cannot be protected from defamation liability by the opinion/analysis privilege if the statement was published.
D) none of the above
Q3) Discuss why there may be liability for writers of letters of recommendation that fail to include relevant employment-related information
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Page 12
Chapter 10: Cyberlaw, Social Media, and Privacy
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62 Verified Questions
62 Flashcards
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Sample Questions
Q1) There are both federal and state anticyberstalking laws.
A)True
B)False
Q2) Under federal law, ISPs are not permitted to disclose your identity when someone asks for the actual name behind a user name.
A)True
B)False
Q3) Which of the following is not a computer crime?
A) unauthorized use of computer equipment
B) alteration or destruction of computer files
C) entering fraudulent data
D) using computers to convert data
E) All of the above are computer crimes.
Q4) Which of the following is correct about Lakes' policy on Tweets?
A) The monitoring is overly broad and will not be permitted under federal law.
B) The monitoring is limited to company e-mail messages, but personal email messages are discoverable.
C) The monitoring policy fits within current legal standards.
D) The monitoring is not permitted.
E) a, b, and c
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Chapter 11: Environmental Regulation and Sustainability
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112 Verified Questions
112 Flashcards
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Sample Questions
Q1) The bubble concept applies to nonattainment areas.
A)True
B)False
Q2) The 1970 amendments to the Clean Air Act were technology-forcing provisions.
A)True
B)False
Q3) Which of the following federal acts does not permit private citizen suits?
A) Resource Conservation and Recovery Act
B) Clean Air Act
C) Clean Water Act
D) All of the above permit private suits.
Q4) State environmental laws are always superceded by the federal environmental laws.
A)True
B)False
Q5) A National Pollution Discharge Elimination Permit:
A) permits the holder to discharge pollutants at its point source.
B) permits the holder to discharge toxic pollutants.
C) permits the holder to discharge pollutants after pretreatment.
D) permits the discharge of smoke from utility plants equipped with scrubbers.
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Chapter 12: Contracts and Sales: Introduction and Formation
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152 Verified Questions
152 Flashcards
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Sample Questions
Q1) Contracts for the sale of land must be in writing to be enforceable.
A)True
B)False
Q2) Which of the following contracts must be in writing to be enforceable?
A) A contract for the sale of an easement for $250.
B) A contract for the sale of a bike for $175.
C) A six-month marketing consulting contract.
D) All of the above must be in writing to be enforceable.
Q3) Under common law, a counteroffer is also a rejection.
A)True
B)False
Q4) Asking a couple's plans for having children is a violation of the ECOA.
A)True
B)False
Q5) "This offer is limited to these terms," means that between merchants only immaterial terms added in the acceptance will be part of the contract.
A)True
B)False
Q6) Name the statutes that affect contract formation in cyberspace.
Q7) Discuss what colleges and universities must do under CARD for their students. Page 15
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Page 16
Chapter 13: Contracts: Performance, Remedies, and Rights
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155 Verified Questions
155 Flashcards
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Sample Questions
Q1) Conditions precedent are events that must happen before contract performance is required.
A)True
B)False
Q2) Silence, or the failure to disclose information, is not misrepresentation.
A)True
B)False
Q3) Material information is something that would affect the decision to buy or sell.
A)True
B)False
Q4) Angela, age 17, is injured in a car accident and receives $5,200 in medical treatment at the emergency room. The hospital sends a bill to Angela, who signed the admitting form in which she agreed to pay for the treatment. Angela:
A) is a minor and need not pay the bills.
B) is liable for the bill as a necessity.
C) can rescind the agreement.
D) none of the above
Q5) Discuss the students' use of the infancy defense in the Turnitin (iParadigms) case.
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Chapter 14: Sales: Product Advertising and Liability
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138 Verified Questions
138 Flashcards
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Sample Questions
Q1) A disclaimer of liability for personal injuries caused by a breach of warranty would be unconscionable.
A)True
B)False
Q2) Which of the following would be a "defect" for purposes of 402A?
A) failure to warn not to put a hair dryer in water
B) food package that permits tampering
C) a missing bolt on a car steering column
D) all of the above
Q3) "These cartons will hold up to 100 pounds of books" is an example of:
A) an implied warranty of merchantability.
B) an express warranty.
C) misrepresentation.
D) privity.
Q4) Caveat emptor is a Latin term meaning "let the buyer beware."
A)True
B)False
Q5) The Federal Trade Commission does not have the authority to halt deceptive ads.
A)True
B)False
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Chapter 15: Products: Business Intellectual Property
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95 Verified Questions
95 Flashcards
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Sample Questions
Q1) The Supreme Court has held that developing a method for creating something that exists in nature patent laws.
A) is
B) is not
C) cannot
D) should not
Q2) AOL use the phrase "You've got mail!" to signal its customers that there is mail in their electronic accounts. AT&T began using the phrase, "You have mail!" for its customers. AOL brought suit against AT&T for trademark infringement. Has there been infringement?
Q3) There can be infringement of patents, copyrights, trademarks, trade names and trade dress.
A)True
B)False
Q4) "M & M's" brand candy is:
A) an example of a trademark.
B) an example of a generic label not entitled to trademark protection.
C) a trademark protectable for 17 years.
D) none of the above
Q5) Discuss the potential penalties under the Industrial Espionage Act.
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Chapter 16: Business Competition: Antitrust
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159 Verified Questions
159 Flashcards
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Sample Questions
Q1) The Celler-Kefauver Act regulates asset acquisitions.
A)True
B)False
Q2) Pat's Bicycle Shop is a Schwinn dealer. In order to be such a dealer, Pat's has to agree not to carry other brands of bicycles. Is this agreement illegal?
Q3) A monopsony is illegal per se.
A)True
B)False
Q4) Fair trade laws are still in effect in many states.
A)True
B)False
Q5) Sole outlets are not antitrust violations when there is interbrand competition. A)True
B)False
Q6) Predatory pricing is not specifically covered in any of the antitrust laws.
A)True
B)False
Q7) A defense to tying is quality control.
A)True
B)False
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Chapter 17: Management of Employee Conduct: Agency
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115 Verified Questions
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Sample Questions
Q1) A real estate agent who fails to disclose his interest as a buyer to his seller principal has violated his duty of loyalty.
A)True
B)False
Q2) Which is a requirement for establishing apparent authority?
A) underlying express authority
B) an agency agreement
C) both a and b
D) none of the above
Q3) Ratification of a contract by a principal releases the agent from all liability to the third party.
A)True
B)False
Q4) Discuss the requirements for ending an agency relationship.
Q5) The public policy exception to the employment-at-will doctrine protects:
A) employees who are fired with cause.
B) employees who engage in illegal conduct.
C) whistle-blowers.
D) none of the above
Q6) Discuss why the peer review procedure is successful in some companies.
Page 21
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Chapter 18: Governance and Structure: Forms of Doing Business
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Sample Questions
Q1) Discuss CEO concerns regarding CEO compensation.
Q2) Partners are only jointly liable for torts of other partners committed in the scope of the partnership business.
A)True
B)False
Q3) Incorporators are not liable for contracts entered into before incorporation.
A)True
B)False
Q4) Under Sarbanes-Oxley, current employees are not considered independent for purposes of board structure.
A)True
B)False
Q5) Pooling agreements are:
A) illegal as against public policy.
B) the same as voting trusts.
C) valid if filed with the corporation's secretary.
D) none of the above
Q6) A merger requires a board resolution and shareholder approval.
A)True
B)False Page 22
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Page 23
Chapter 19: Governance and Regulation: Securities Law
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Sample Questions
Q1) Charlie Seam is a broker for a major stockbroker in New York City. Charlie took a job at night with a janitorial firm that is responsible for doing the cleaning on several of the major law firms in New York. These firms also handle the legal business for the largest companies in the United States. Over the past few years these same firms have drafted the documents and done the necessary filings for takeovers among these firms. Charlie has discovered that, as a supervisor, he is able to move freely around the offices and read of developing events on the partners' desks. Through this job Charlie has been able to make some very good investments for himself and his clients. Do Charlie's actions violate 10(b)?
Q2) Blue sky laws are state securities registration laws.
A)True
B)False
Q3) The intrastate registration exemption requires that 100 percent of the issuer's assets be located in its resident state.
A)True
B)False
Q4) Describe shareholders' rights under Section 14.
Q5) Discuss why Bernie Madoff received the sentence he did for his crimes.
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Chapter 20: Management: Employee Welfare
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Sample Questions
Q1) Which protection is not part of FLSA?
A) minimum wage
B) maximum hours
C) retirement benefits
D) All of the above are protections.
Q2) States do not limit the length of time a person can receive disability payments.
A)True
B)False
Q3) Overtime pay is computed on a:
A) monthly basis.
B) daily basis.
C) weekly basis.
D) none of the above
Q4) Corporate officers can be held liable for FLSA violations.
A)True
B)False
Q5) The use of company e-mail by union organizers remains an unresolved issue.
A)True
B)False
Q6) Discuss when OSHA will find willful violations.
Page 25
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Chapter 21: Management: Employment Discrimination
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119 Verified Questions
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Sample Questions
Q1) A disparate impact case:
A) requires the same proof as a disparate treatment case.
B) does not apply to promotions.
C) requires proof of intent to discriminate.
D) does not apply if a reasonable rule produces the disparate impact.
E) none of the above
Q2) Under Title VII, sexual harassment complaints require proof of:
A) actual physical contact.
B) involuntary sexual acts.
C) either verbal or physical suggestions.
D) none of the above
Q3) What is required to establish a prima facie case for disparate treatment?
A) plaintiff must belong to a minority group
B) plaintiff must have been qualified for the job
C) a minority was not hired
D) a and b only
E) a, b, and c
Q4) Affirmative action programs are required under Title VII.
A)True
B)False
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