Management and the Legal Environment Exam
Solutions
Course Introduction
This course explores the dynamic relationship between management decision-making and the legal environment in which organizations operate. Students will examine key legal concepts, regulations, and ethical considerations that impact business activities, including contract law, employment law, regulatory compliance, intellectual property, and dispute resolution. The course emphasizes practical applications of the law in real-world managerial situations, guiding students to identify potential legal risks and incorporate legal reasoning into business strategies. Ultimately, students will gain the foundational knowledge to navigate the complexities of the legal system while effectively managing within the boundaries of the law.
Recommended Textbook
Business Its Legal Ethical and Global Environment 11th Edition by Marianne M. Jennings
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20 Chapters
2727 Verified Questions
2727 Flashcards
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Chapter 1: Introduction to Law
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120 Verified Questions
120 Flashcards
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Sample Questions
Q1) Citations are a form of legal shorthand for referring to statutes,ordinances,and cases.
A)True
B)False
Answer: True
Q2) The Uniform Commercial Code and the Uniform Partnership Act are both enactments of Congress.
A)True
B)False Answer: False
Q3) Zoning laws are substantive only.
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
Page 3
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Chapter 2: Business Ethics and Social Responsibility
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131 Verified Questions
131 Flashcards
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Sample Questions
Q1) Which part of the Blanchard/Peale test is similar to the categorical imperative?
A)Is it legal?
B)Is it balanced?
C)How does it make me feel?
D)The two tests do not have similar elements.
Answer: B
Q2) Ethics consists of the unwritten rules we apply in both business and personal lives.
A)True
B)False
Answer: True
Q3) Discuss some similarities of the countries listed as the most corrupt in the 2015 Corruption Perceptions Index.
Answer: The top 5 countries listed are Somalia,Korea (North),Afghanistan,Sudan,and South Sudan.There is a strong correlation between perceived unethical behavior and the lack of economic development in a country.
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4
Chapter 3: The Judicial System
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137 Verified Questions
137 Flashcards
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Sample Questions
Q1) Allegheny Airlines is incorporated in Delaware and has flights throughout the states of Pennsylvania,Ohio,West Virginia,New Jersey,New York,and Connecticut,and also in Washington,D.C.Wayne Jones,a resident of Las Vegas,Nevada,is severely injured when an Allegheny flight carrying him from Pittsburgh to Johnstown,Pennsylvania,crashes on landing.Jones has damages of over $250,000.In what court can Jones properly bring suit and where?
Answer: There is diversity and a claim in excess of $75,000,so federal district court is appropriate.The location is either Pennsylvania (site of the crash)or Delaware (principal place of business).Allegheny could not be required to defend a lawsuit in Nevada since it has no contacts there.
Q2) When a case is remanded:
A)it is affirmed.
B)it is sent back to the trial court.
C)it is completed.
D)precedent is not being followed.
E)none of the above
Answer: B
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Page 5
Chapter 4: Managing Disputes: Alternative Dispute
Resolution and Litigation Strategies
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148 Verified Questions
148 Flashcards
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Sample Questions
Q1) Which of the following would \(\underline{\text{not}}\) be discoverable in a contract suit requesting lost profits as damages?
A)income tax returns of the business
B)orders of merchandise
C)expense records
D)work product
Q2) Peremptory challenges:
A)are challenges for cause.
B)are generally limited in each case.
C)require specific reasons for use.
D)require proof of bias or prejudice of the juror.
E)none of the above
Q3) When is a motion for a judgment NOV granted?
A)after the plaintiff has presented its case
B)when the weight of the evidence is contrary to the jury's verdict
C)when the pleadings of the plaintiff are insufficient to state a cause of action
D)none of the above
Q4) Discuss why mediation is replacing arbitration as the preferred method of business dispute resolution.
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Chapter 5: Business and the Constitution
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124 Verified Questions
124 Flashcards
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Sample Questions
Q1) The Bipartisan Campaign Reform Act is more commonly referred to as the _____ law.
A)Violence Against Women
B)McCain-Feingold
C)PAC Pre-emption
D)Rainbow Coalition
Q2) The balancing test:
A)is one applied in supremacy issue cases.
B)is one applied in state regulation of interstate commerce.
C)involves the exercise of state taxation powers.
D)none of the above
Q3) Which of the following pairs is incorrect?
A)Article III of the U.S.Constitution - the Courts
B)The Bill of Rights - First Ten Amendments to the U.S.Constitution
C)The Fifth Amendment - due process
D)The First Amendment - substantive due process
E)The Fourteenth Amendment - due process
Q4) The Bill of Rights contains the Commerce Clause.
A)True
B)False
Page 7
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Chapter 6: Administrative Law
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139 Verified Questions
139 Flashcards
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Sample Questions
Q1) Reverse FOIA suits are suits by agencies to stop disclosures.
A)True
B)False
Q2) Once a rule is proposed,it cannot be withdrawn.
A)True
B)False
Q3) The Freedom of Information Act is part of the Administrative Procedures Act.
A)True
B)False
Q4) Due process rights before an administrative agency require that formal trials be held before rights are taken away.
A)True
B)False
Q5) Administrative agencies can exist at any level of government.
A)True
B)False
Q6) Both formal and informal rulemaking processes include public hearings.
A)True
B)False
Q7) Describe the roles of administrative agencies.
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Chapter 7: International Law
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97 Verified Questions
97 Flashcards
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Sample Questions
Q1) The government of Argentina has taken over all the country's banks.No compensation has been paid.Some U.S.citizens and businesses had accounts in the banks.Absent treaty provisions the takeover:
A)can be set aside by a U.S.federal court because no compensation was paid.
B)can be partially set aside by a U.S.federal court on the accounts of U.S.citizens and businesses.
C)can be reviewed by the U.S.State Department.
D)is immune from review under the act of state doctrine.
Q2) Under the doctrine of sovereign immunity,commercial transactions cannot be regulated.
A)True
B)False
Q3) Foreign businesses engaging in commercial activity in the United States are not subject to U.S.antitrust laws.
A)True
B)False
Q4) NAFTA is an example of a bilateral trade agreement.
A)True
B)False
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Chapter 8: Business Crime
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119 Verified Questions
119 Flashcards
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Sample Questions
Q1) Mens rea is the particular mental state required to establish a crime.
A)True
B)False
Q2) The purpose of the initial appearance is to:
A)issue an indictment against the defendant.
B)set the terms of release (if any).
C)allow the judge to issue an information.
D)provide the defendant with the opportunity to appear before the grand jury.
Q3) An indictment is:
A)a document issued by the grand jury.
B)issued after a preliminary hearing.
C)followed by an information.
D)none of the above
Q4) 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
Q5) In punishments for corporate criminal cases,shame punishment is increasing.
A)True
B)False
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Chapter 9: Business Torts
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136 Verified Questions
136 Flashcards
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Sample Questions
Q1) Speeding is a breach of duty for negligence purposes.
A)True
B)False
Q2) A magazine ad features a photo of the head of Albert Einstein placed atop the photo of a young,muscular torso with loads of tattoos and the top of his underwear showing.The ad is one for General Motors and features the line,"Ideas are sexy,too." The Hebrew University of Jerusalem was given the rights to Mr.Einstein's works and names by his family when he died.GM says that it purchased the rights to use the Einstein photo from a reputable licensing firm.What would be the basis of a suit by the University against General Motors?
A)Defamation
B)Intrusion into private affairs
C)Appropriation
D)Strict liability
Q3) Asking buyers to break their existing contracts with other suppliers is tortious interference.
A)True
B)False
Q4) Discuss why whistle-blowers should receive some kind of protection from defamation claims.
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Chapter 10: Environmental Regulation and Sustainability
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119 Verified Questions
119 Flashcards
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Sample Questions
Q1) Which of the following acts established the Superfund?
A)Solid Waste Disposal Act
B)Resource Recovery Act
C)Toxic Substances Control Act
D)none of the above
Q2) Many dry cleaners now charge an environmental surcharge to cover their costs on emissions compliance.
A)True
B)False
Q3) In nonattainment areas,the EPA has the authority to:
A)impose construction moratoriums.
B)require NPDES permits.
C)halt all federal funds.
D)none of the above
Q4) Explain whether each of the following would require an EIS and why.
a.The creation of a heliport in a national park.
b.The construction of a new central post office clearing facility.
c.The placement of a federal research laboratory at the top of a mountain.
Q5) Explain how the EPA uses the "bubble concept."
Q6) What environmental issues exist for a developer?
Page 12
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Chapter 11: Contracts and Sales: Introduction and Formation
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157 Verified Questions
157 Flashcards
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Sample Questions
Q1) Void and voidable contracts are one and the same.
A)True
B)False
Q2) Predatory lending involves high interest rates and title loans.
A)True
B)False
Q3) The Equal Credit Opportunity Act prohibits which of the following?
A)Basing the credit decision on the receipt of public assistance income.
B)Basing the credit decision on a bankruptcy of five years ago.
C)Basing the credit decision on the fact that the applicant was in prison for a felony three years ago.
D)Basing the credit decision on unemployment.
Q4) An acceptance by a merchant in response to an offer by a merchant cannot contain any additional terms or it will be treated as a counteroffer under the UCC. A)True
B)False
Q5) A contract for termite extermination at a home would be governed by the UCC.
A)True
B)False
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Chapter 12: Contracts and Sales: Performance,Remedies,and Collection
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156 Verified Questions
156 Flashcards
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Sample Questions
Q1) The Fair Debt Collections Practices Act applies only to consumer credit collection. A)True
B)False
Q2) Which of the following acts by a third-party collector would be a violation of the FDCPA?
A)sending the debtor a postcard that reads: "Don't let this bill affect your excellent credit rating"
B)calling the debtor at home at 8:30 AM to confirm the debt
C)referring the account to an attorney for a lawsuit
D)filing suit without first contacting the debtor
Q3) Doug Weston had a six-month apartment lease.The lease provided that if Doug ended the lease early,he would be required to forfeit his security deposit and his last month's rent.This provision in the lease agreement:
A)is void as against public policy.
B)is a liquidated damages clause.
C)is an assignment of benefits.
D)is substantial performance.
Q4) Explain the purpose of a force majeure clause.
Page 14
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Chapter 13: Product Advertising and Liability
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144 Verified Questions
144 Flashcards
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Sample Questions
Q1) Which of the following is an example of an express warranty?
A)"Guaranteed to bring the most happiness to any home."
B)"Simply the best donut you'll ever eat."
C)"Brings friends running to you."
D)none of the above
Q2) Which of the following would not be a breach of the warranty of merchantability?
A)a piece of garden snake in a box of frozen green beans
B)a caterpillar in broccoli soup purchased at a restaurant
C)a milk carton that leaks
D)All of the above are breaches of the implied warranty of merchantability.
Q3) "As is" written in a contract:
A)serves to disclaim the implied warranty of merchantability.
B)serves to disclaim the implied warranty of fitness for a particular purpose.
C)has no effect on warranty protection.
D)both a and b
E)none of the above
Q4) Cheryl Lileth purchased Big Eyes Mascara,a product described on its label as "Hypoallergenic." Cheryl developed a rash and swelling after one use.Can she recover? What possible theories could she use?
Q5) In the Nestle case,what ethical issues existed?
Page 15
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Chapter 14: Business Competition: Antitrust
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157 Verified Questions
157 Flashcards
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Sample Questions
Q1) Which of the following acts prohibits unfair methods of competition?
A)Sherman Act
B)Federal Trade Commission Act
C)Robinson-Patman Act
D)Clayton Act
E)none of the above
Q2) Division of markets is a per se violation.
A)True
B)False
Q3) Price control consignments are treated as forms of resale price maintenance.
A)True
B)False
Q4) The ability of a customer to control the prices of a supplier in a market is a monopsony.
A)True
B)False
Q5) Joint ventures among competitors are per se violations.
A)True
B)False
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Chapter 15: Business and Intellectual Property Law
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105 Verified Questions
105 Flashcards
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Sample Questions
Q1) All WTO members follow the 20-year period of patent protection.
A)True
B)False
Q2) The Sonny Bono Copyright Extension Act:
A)does not apply to individual copyright ownership.
B)does not apply to corporate copyright ownership.
C)does not provide protection for movies.
D)extended the time for the federal copyright protection to 70 years beyond the life of the creator/author.
E)none of the above
Q3) Forty-nine states have adopted the Uniform Trade Secrets Act.
A)True
B)False
Q4) Working requirements mandate use and development of the patented product or the rights are lost.
A)True
B)False
Q5) Software copyrights cover operation methods,such as menus.
A)True
B)False
Page 17
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Chapter 16: Management of Employee Conduct: Agency
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132 Verified Questions
132 Flashcards
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Sample Questions
Q1) A principal cannot ratify an act of an agent retroactively.
A)True
B)False
Q2) The breach of the fiduciary duty by an agent:
A)results in termination of the agent.
B)terminates the agent's apparent authority.
C)does not terminate an agent's implied authority.
D)none of the above
Q3) What is the difference between implied authority and apparent authority?
Q4) Post-employment non-compete agreements are unenforceable.
A)True
B)False
Q5) Express and implied authority together are called real authority.
A)True
B)False
Q6) 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
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Chapter 17: Governance and Structure: Forms of Doing Business
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154 Verified Questions
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Sample Questions
Q1) Which of the following is true about the composition of boards of corporations covered by Sarbanes-Oxley?
A)All board members must be independent.
B)All audit committee members must be independent.
C)Independence is defined as not having current contracts with the corporation.
D)both b and c
Q2) Close corporations are generally publicly traded.
A)True
B)False
Q3) Which of the following \(\underline{\text{not}}\) be used to pierce the corporate veil?
A)inadequate capitalization
B)alter ego theory
C)formation of the corporation to avoid personal liability
D)All of the above theories can be used.
Q4) Utah Light,Inc.has a takeover offer from Cal Corp.Utah Light is experiencing difficulty with earnings and its share price has dropped from $32 to $19.Cal Corp's offer is for $23 per share.Utah Light's board feels that because of pending plans and developing assets,it should not accept the offer.Must the board accept the offer?
Page 19
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Chapter 18: Governance and Regulation: Securities Law
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170 Verified Questions
170 Flashcards
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Sample Questions
Q1) A limited partnership interest is not considered a security.
A)True
B)False
Q2) Director X of the ABC Corporation,listed on the NYSE,has engaged in the following transactions in ABC's stock: January 1,2017 -purchased 300 shares of ABC stock for $30 per share
January 15,2017- sold 300 shares of ABC stock for $35 per share
January 30,2017 -purchased 300 shares of ABC stock for $25
February 3,2017 -sold 300 shares of ABC stock for $20
Which of the following is correct?
A)The director has a net loss so there are no short-swing profits.
B)The director has a net gain of $15 x 300 shares or $4,500.
C)The director is not subject to the restrictions on short-swing profits.
D)none of the above
Q3) Section 12 violations would include selling before the effective date.
A)True
B)False
Q4) Describe who must file 10K,10Q and 8K reports.
Q5) Describe shareholders' rights under Section 14.
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Chapter 19: Management of Employee Welfare
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154 Verified Questions
154 Flashcards
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Sample Questions
Q1) Only employers are subject to the NLRA's good-faith bargaining requirement.
A)True
B)False
Q2) ERISA was passed to regulate employee pension and retirement plans.
A)True
B)False
Q3) Ralph Quest is an air traffic controller who has had significant problems with high blood pressure.He has changed his diet,takes medication,and the problem persists.His doctor has recommended that Quest find other employment because his job is causing his high blood pressure and continuing to work at the job will lead to a massive heart attack.Ralph has no training for any other job.Which of the following statements is true?
A)Ralph has a job-related injury that will be covered under workers' compensation.
B)Ralph has a medical problem that will not be covered.
C)Ralph will need to have a heart attack before he qualifies as disabled.
D)none of the above
Q4) Wages and hours are examples of mandatory subjects for good-faith bargaining.
A)True
B)False
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Page 21
Chapter 20: Management: Employment Discrimination
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127 Verified Questions
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Sample Questions
Q1) The Pregnancy Discrimination Act:
A)prohibits employers from requiring pregnant women to take leaves.
B)prohibits employers from cutting the pay of women who return to work after maternity leave.
C)prohibits employers from basing a promotion decision on the basis of a pregnancy or planned pregnancy.
D)all of the above
Q2) The presence of sexually suggestive e-mails on an employer's e-mail system can be the basis of a claim for atmosphere of harassment.
A)True
B)False
Q3) "Can you lift 20 pounds without use of that arm?" is a job interview question that violates the ADA.
A)True
B)False
Q4) Seniority and merit systems are not subject to Title VII prohibitions.
A)True
B)False
Q5) List all the possible defenses to charges of discrimination.
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