Regulation of Business Exam Review
Course Introduction
This course explores the legal and regulatory frameworks governing business activities at both national and international levels. Students will examine key statutes, administrative regulations, and judicial decisions that impact business operations, including areas such as antitrust law, consumer protection, securities regulation, and environmental compliance. Through case studies and real-world examples, the course analyzes the rationale for government intervention in markets, the role of regulatory agencies, and the effects of regulation on business strategy and organizational behavior. Emphasis is placed on understanding compliance requirements and the ethical considerations involved in navigating regulatory environments.
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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Chapter 1: Introduction to Law
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108 Verified Questions
108 Flashcards
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Sample Questions
Q1) Jason Friedman developed software that allows his fellow students to use the university server for purposes of downloading movies, songs, etc. (all copyrighted), without being detected by the university, which monitors its users for purposes of avoiding vicarious copyright infringement charges and suits. Jason does not sell the software to his fellow students; he simply distributes it to them when they ask. Applying the decisions from the Grokster and Viacom decisions, which of the following statements is correct?
A) Because Jason is not making any money from the software, he has done nothing to violate copyright laws.
B) Because Jason's software does not involve the ability for the actual downloading of copyrighted materials, he has done nothing to violate copyright laws.
C) Because Jason's software is not copyrighted, he has done nothing to violate copyright laws.
D) Because Jason's software facilitates copyright infringement, he could be liable for that infringement.
Answer: D
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Chapter 2: Business Ethics and Social Responsibility
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118 Flashcards
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Sample Questions
Q1) The Corruptions Perceptions Index compiled by Transparency International:
A) shows that all countries' governments are corrupt.
B) shows a correlation between corruption and the lack of economic development. C) shows corruption is acceptable in most countries.
D) none of the above
Answer: B
Q2) To obtain the protections and benefits of the sentencing guidelines, companies must have a code of ethics.
A)True
B)False
Answer: True
Q3) Business self-regulation has been effective in solving social problems.
A)True
B)False
Answer: False
Q4) A company that self-reports a legal violation risks a higher penalty.
A)True
B)False Answer: False
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Chapter 3: The Judicial System
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121 Flashcards
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Sample Questions
Q1) The party who appeals a decision is called an appellant.
A)True
B)False
Answer: True
Q2) Which of the following suits could be properly heard in federal district court?
A) a suit between two contracting parties in one state over a UCC interpretation question
B) a suit for damages of $50,000 between a citizen of Oregon and a citizen of Washington
C) a suit challenging the constitutionality of a state's death penalty statute
D) all of the above
Answer: C
Q3) Give five reasons why a court may choose not to follow precedent.
Answer: (1) Cases are factually distinguishable.
(2) Quality of precedent - may be from another state.
(3) Changes in technology - e.g., Sony case in Chapter 1. (4) Moral and/or social values change - e.g., abortion.
(5) Changes in society's needs - e.g., searches at airports needed because of increased hijackings.
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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) E-mail cannot be obtained during discovery.
A)True
B)False
Q2) My E-Medicine, Inc. is a company that offers prescriptions over the Internet. The company has a worldwide customer base. A company based in France has alleged that My E-Medicine is selling a generic drug that violates the French company's patent. The company has filed suit against My E-Medicine in France and has sought to use the U.S. Marshal in the United States to serve process for the suit. Which of the following best describes the rights of My E-Medicine?
A) My E-Medicine can be required to go to France to defend the lawsuit because it sells its products there.
B) My E-Medicine has violated the Computer Fraud and Abuse Act.
C) My E-Medicine can challenge the jurisdiction of the U.S. Marshals here in federal district court.
D) My E-Medicine is not responsible for the patent infringement of another company. E) none of the above
Q3) What is a hung jury and what is its effect?
Q4) Name and describe three types of motions that can be made prior to trial.
Page 6
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Chapter 5: Business and the Constitution
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118 Verified Questions
118 Flashcards
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Sample Questions
Q1) Which two amendments to the U.S. Constitution provide for equal protection?
A) First and Fourth
B) Fourth and Fifth
C) First and Fifth
D) Fifth and Fourteenth
Q2) Federal regulation of the Internet is unconstitutional under the commerce clause.
A)True
B)False
Q3) The Nike dispute dealt with the right of a company to publish editorials and letters to the editor in its defense.
A)True
B)False
Q4) The executive branch of the federal government has no enforcement authority.
A)True
B)False
Q5) The First Amendment prohibits state regulation of false advertising.
A)True
B)False
Q6) Discuss the ruling and the importance of Citizen's United.
Page 7
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Chapter 6: Administrative Law
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137 Flashcards
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Sample Questions
Q1) If a company challenges a penalty imposed by an administrative agency, which of the following is the correct order for its appeal?
A) ALJ, agency commissioners, judicial challenge
B) judicial challenge, ALJ, agency commissioners
C) agency commissioners, ALJ, judicial challenge
D) None of the above is in the correct order.
Q2) Choose the one with the correct ordering of rulemaking functions from among the following:
A) enabling statute, comment period, studies of issues, promulgation
B) enabling statute, studies of issues, promulgation, comment period
C) enabling statute, studies of issues, comment period, promulgation
D) None of the above is in correct order.
Q3) Comment periods are not required for modifications of rules, only new rules.
A)True
B)False
Q4) An FOIA request (to be valid):
A) must be in writing.
B) must describe the reason the documents are sought.
C) can request any information in an agency's file.
D) must include prepayment of copy fees.
Page 8
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Chapter 7: International Law
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Sample Questions
Q1) Tariffs can be revenue-raising and protectionist for domestic goods.
A)True
B)False
Q2) An NGO:
A) is not subject to the controls of the FCPA.
B) is not subject to any nation's laws.
C) is an oil cartel.
D) none of the above
Q3) Sunoco Oil Company had long-term oil supply contracts with KW, an oil company in Kuwait. The contracts were negotiated in 1989. The contracts ran smoothly until 1990, when armed forces from Iraq took possession of the oil- producing facilities of Kuwait. The eventual result was the Persian Gulf War which began in early 1991. Sunoco's oil was not delivered for over one year. Sunoco wishes to know its damage rights against KW for the year-long interruption in its oil supply.
Q4) The Export Trading Company Act of 1982 provides an exception to U.S. antitrust laws in international markets.
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) Which of the following would be the crime of obstruction of justice?
A) making a false entry
B) certification of financial statements
C) destroying e-mails
D) both a and c
Q2) What is the distinction between theft and embezzlement?
A) the mens rea is different
B) the amount taken
C) the entrustment of the property
D) They are the same crime.
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) Bribery is an ethical violation, but is not a crime.
A)True
B)False
Q5) Explain the changes Sarbanes-Oxley made to criminal laws.
Q6) Discuss the procedural changes made as a result of Arizona v. Gant.
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Chapter 9: Business Torts
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Sample Questions
Q1) A breach of duty can still be established for negligence cases even when the defendant has complied with the law.
A)True
B)False
Q2) Testimony in a court room is not privileged for purposes of defamation actions.
A)True
B)False
Q3) Some damages other than emotional damages must be established for the tort of intentional infliction of emotional distress.
A)True
B)False
Q4) Galley, Inc. has a contract for operating the kitchen at the Palm Crest Hotel in Miami, Florida. Mealco has approached Palm Crest's director of operations and stated, "Look, sign with us. We'll take care of whatever damages you owe Galley." Mealco's statements: A) are defamatory.
B) constitute the tort of contract interference.
C) constitute the tort of negligence.
D) none of the above
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11
Chapter 10: Cyberlaw, Social Media, and Privacy
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Sample Questions
Q1) Answer the following: Bruce King is a computer whiz who works at the county complex where all records for criminal
a. Fraud, extortion. Perhaps some specific crimes such as destruction of public a. cases are kept. He has developed a means for deleting criminal records from the files and has contacted defendants to offer them the deletion in exchange for a substantial fee. Has King committed any crimes with his actions?
b. What if King worked for a credit reporting firm and offered the deletion service to folks with bad credit ratings? Would the result be the same?
Q2) Janet Walker is a computer information systems major who has been able to tap into an ice cream manufacturer's computer system. As a practical joke, Walker changes the manufacturer's ice cream formula so that an entire day's production has a bitter taste to it. Has Walker committed any crime?
Q3) The privacy rights of cloud customers are clearly established.
A)True B)False
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Page 12
Chapter 11: Environmental Regulation and Sustainability
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112 Verified Questions
112 Flashcards
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Sample Questions
Q1) Which of the following acts controls point sources?
A) Clean Air Act
B) Toxic Substances Control Act
C) Clean Water Act
D) all of the above
Q2) The bubble concept applies to nonattainment areas.
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) An EIS must be filed for both private and governmental projects.
A)True
B)False
Q5) The EU has the most extensive and active emissions permit trading market.
A)True
B)False
Q6) What agencies are responsible for enforcement of regulations on the environment?
Page 13
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Chapter 12: Contracts and Sales: Introduction and Formation
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152 Flashcards
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Sample Questions
Q1) Which of the following is not a violation of the ECOA?
A) requiring a husband's signature when his wife applies for a credit card
B) requiring disclosure of pregnancy
C) requiring disclosure of length of time at current job
D) requiring disclosure of marital status
E) All of the above are violations of the ECOA.
Q2) Quasi contracts are implied-in-law contracts.
A)True
B)False
Q3) Buyer on fax: "Will take house for $587,500 if front lawn is fixed." Seller on fax in response: "Price is $589,000 and no front lawn." Buyer on fax in response: "$588,000 plus the front lawn." Seller on fax in response: $589,000 plus the front lawn."
A) There is a contract for the sale of the house at $588,000 plus the lawn.
B) There is a contract for the sale of the house at $589,000 plus the lawn.
C) There is no contract.
D) none of the above
Q4) "I'll take it, but you must deliver," is a valid acceptance.
A)True
B)False
Page 14
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Chapter 13: Contracts: Performance, Remedies, and Rights
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Sample Questions
Q1) A bill of lading is a receipt for shipment issued by the seller.
A)True
B)False
Q2) An architect who fails to pay her annual license renewal fee will be unable to collect fees for work done until the renewal fee is paid.
A)True
B)False
Q3) The three-day-cooling-off period applies to:
A) credit contracts in which a security interest in the home is given.
B) second mortgages on homes.
C) both a and b
D) none of the above
Q4) Chapter 13 bankruptcy is only available to consumers.
A)True
B)False
Q5) The contracts of a person who has been declared legally incompetent are void.
A)True
B)False
Q6) Discuss the students' use of the infancy defense in the Turnitin (iParadigms) case.
Page 15
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Chapter 14: Sales: Product Advertising and Liability
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138 Verified Questions
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Sample Questions
Q1) The implied warranty of merchantability requires proof that the buyer was relying on some language when he or she made the purchase of the good.
A)True
B)False
Q2) Corrective ads can be required only when competition is affected.
A)True
B)False
Q3) Ads can be a basis for an express warranty.
A)True
B)False
Q4) Coca-Cola found a fungicide in its Simply Orange and Minute Maid orange juices. The fungicide was the result of a spray used by Brazilian orange growers who then sold their oranges to Coca-Cola. Which best describes Coca- Cola's liability to customers who purchase the juice?
A) Coca-Cola is not liable because it did not know about the fungicide.
B) The Brazilian growers are not liable because there is no privity with the juice purchasers.
C) Coca-Cola is liable for a defect in its products.
D) Coca-Cola is liable under tort theory but not contract.
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Chapter 15: Products: Business Intellectual Property
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Sample Questions
Q1) Registration of a trademark in a Madrid member country is:
A) effective for that country only.
B) effective for all Madrid member countries.
C) not effective in the United States.
D) protected under the Berne convention.
Q2) GATT requires patent protection for 50 years.
A)True
B)False
Q3) When the UTSA does not apply, recovery for taking a trade secret:
A) does not exist.
B) may exist for breach of loyalty.
C) may exist for breach of due care.
D) may exist for breach of accounting.
Q4) One factor in determining fair use is commercial profit.
A)True
B)False
Q5) Discuss the potential penalties under the Industrial Espionage Act.
Q6) Copyrights run for the life of the creator plus 50 years.
A)True
B)False
Page 17
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Chapter 16: Business Competition: Antitrust
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Sample Questions
Q1) Guernzey Milk produces canned milk under its label and several grocery-store labels. The content is the same but the grocery-store labels are sold for less. Guernzey says the packaging for the grocery store brands is cheaper. Any antitrust problems?
Q2) Meeting the competition is a defense to price discrimination.
A)True
B)False
Q3) Snow-Man manufactures a cotton candy machine. It will not sell its machine unless the buyer purchases at least five-dozen paper cones for holding the cotton candy. Snow-Man's requirement:
A) is an example of an exclusive dealing contract.
B) is a tying arrangement.
C) is a requirements contract.
D) none of the above
Q4) Together, Christie's and Sotheby's controlled about 75% of the international auction market.
A)True
B)False
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18
Chapter 17: Management of Employee Conduct: Agency
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Sample Questions
Q1) In a partially disclosed principal relationship, who is liable to the third party on a contract outside the agent's authority?
A) principal
B) agent
C) both a and b
D) none of the above
Q2) Hayley Franken works at Big Burger after school and on weekends. With her heavy course load, her job and being on the basketball team, Hayley finds that she is simply worn out most of the time. She has said to her manager at work, " Sometimes I am not even sure how I drive myself home because I want to sleep so much." Hayley worked a double shift at Big Burger and did not leave until 2 AM, 4 hours beyond her usual quitting time. On the way home, she apparently dozed off and struck another car head-on and was killed. Her parents are suing Big Burger for wrongful death. Discuss the liability issues.
Q3) As you contemplate the purchase of a computer that has been a store demonstrator, the manager of the store says, "Look, take it. If it turns out to have problems, I'll take it back." Would the store manager have the authority to make this promise?
Q4) Discuss why the peer review procedure is successful in some companies.
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Page 19
Chapter 18: Governance and Structure: Forms of Doing Business
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Sample Questions
Q1) ABC partnership owns and operates a potato farm in Idaho. A, B, and C are the partners/owners. C is having significant personal financial problems. Savoy Stores has obtained a judgment against C in the amount of $l2,341. Savoy knows that ABC is about to harvest its potatoes. When the ABC potatoes are being transported for processing, Savoy takes one-third of the potatoes to satisfy the debt. A and B object. C claims he is using the partnership property to satisfy a debt. Can C do this?
Q2) In 2012, the CEO with the highest compensation was:
A) Lawrence Ellison
B) Mark Hurd
C) John Donahoe
D) none of the above
Q3) Limited partners have liability limited to the amount of their contribution to the partnership.
A)True
B)False
Q4) Only the general partner in a limited partnership has personal liability.
A)True
B)False
Q5) Discuss CEO concerns regarding CEO compensation.
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Chapter 19: Governance and Regulation: Securities Law
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Sample Questions
Q1) The shareholders of Tennis Man, Inc. have just approved an amendment to their articles of incorporation that requires 75 percent of all shareholders to approve a merger before it can take place. The amendment is an example of:
A) a tender offer.
B) an illegal act preempted by the Williams Act.
C) a valid antitakeover defense.
D) none of the above
Q2) Section 404 of SarbanesÂOxley is the section that requires certification of the adequacy of a company's internal controls.
A)True
B)False
Q3) Pump and dump is the act of hyping a stock in order to benefit from a sale once the hype affects the price.
A)True
B)False
Q4) Section 12 violations would include selling before the effective date.
A)True
B)False
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Chapter 20: Management: Employee Welfare
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Sample Questions
Q1) Emma Smith is currently unemployed. She was offered a position as a retail clerk but she would have to work on Saturdays - a day she considers to be the Sabbath as a member of the Seventh Day Adventist Church. After refusing the position, she is denied unemployment compensation. Which of the following statements is true?
A) The denial was proper since refusal to accept employment is a basis for denying benefits.
B) The denial was proper because her reason for refusing employment was arbitrary.
C) The denial was proper because she has the opportunity to work.
D) none of the above
Q2) The Department of Homeland Security:
A) has been disbanded.
B) is now responsible for immigration issues.
C) is not a cabinet level department.
D) none of the above
Q3) The NLRA established the NLRB as the enforcement agency for labor laws.
A)True
B)False
Q4) Describe the types and sliding scales of penalties under OSHA.
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Page 22
Chapter 21: Management: Employment Discrimination
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Sample Questions
Q1) Which of the following would be a reasonable accommodation required by the Americans with Disabilities Act?
A) flexible or part-time scheduling
B) reassignment to a different job
C) providing readers and interpreters
D) all of the above
Q2) Under the Pregnancy Discrimination Act, employers are not prohibited from requiring pregnant employees to stop employment at a certain time during the pregnancy.
A)True
B)False
Q3) Which of the following employer policies would violate the Pregnancy Discrimination Act?
A) requiring pregnant employees to leave the work force at seven months
B) providing medical insurance benefits that cover all illnesses except pregnancy
C) loss of seniority upon return from pregnancy leave
D) all of the above
Q4) Discuss the main racial discrimination issues in the Ricci case.
Q5) Discuss Costco's accommodation efforts in the Cloutier v. Costco case.
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