Business' law and ethics exam 1

The three most common formal methods of ADR are:

Mediation, arbitration and expert evaluation

As a general rule, judges are _________________ and juries are ____________________.

finders of law, finders of fact

Which of the following statements about organizational ethical systems is true? A. Informal value systems standing alone may be too vague and impractical. B. Codes of ethics and codes of conduct should never be included in the same document. C. Prioritizing ethical values is a very different thing from engaging in values management. D. None of the answer choices are true.

A

Which of the following statements about alternative dispute resolution (ADR) is true?

A common formal ADR method is mediation.

Which of the following is true of trial courts?

A trial court decision is binding on the parties to the case an no one else.

According to the textbook, which of the following statements are true about the typical relationships between corporations and attorneys in the United States? A. Working closely with a business attorney results in opportunities and reduced business costs. B. The majority of companies rely upon in house counsel for their legal needs. C. It is almost unheard of for more than one attorney's advice to be needed on a legal matter, as consulting more than one attorney leads to confusion and conflicting counsel. D. All of the answer choices are correct.

A.

The moderate view of corporate social responsibility is best represented by which of the following? A. To preserve the air quality, the president of the U.S. set a minimum gas mileage average for all autos sold in the U.S. This was done by executive order. Chen, a auto executive, dutifully complied with the regulations. B. Cindy, a CFO, told accountants in her department that their job was to do whatever it took to make the financial numbers of the company look good so that shareholder value would be maximized. C. Geoff, a CEO, served the public interest by donating millions to charity for hurricane relief. This lowered corporate profits. D. All of the answer choices represent the moderate view of corporate social responsibility.

A.

Which of the following is correct of federal powers in the U.S. system? A. They are limited and granted. B. They are unlimited and granted. C. They are limited and inherent. D. They are unlimited and inherent.

A.

Which of the following is correct of legally mandated arbitration? A. It is nonbinding and gives the losing party the automatic right to appeal. B. It is binding and gives no right to appeal to either party. C. It is nonbinding and gives the losing party the right to appeal only under certain narrow conditions. D. It is unconstitutional, as all citizens have a constitutional right to a jury trial.

A.

The narrow view of corporate social responsibility would be represented by which of the following statements? A. Dave, a devout Christian, told his employees at the annual corporate meeting: "Folks, we must put the interests of stakeholders first, those who are effected by our decisions, even before profits. Remember, as the Good Book says: 'The love of money is the root of all kinds of evil'." B. Melanie, a stockbroker with a Wall Street firm, told a fellow broker: "You know, we do what's best for the country when we maximize profits for shareholders. These do-gooders who say the government should regulate this and that, these nutjobs who say we ought to look out for the little people, they're the ones really holding the economy back and hurting everybody." C. Devonte, a recent college graduate running for Congress, gave a speech in which he said: "This country was made great because the government has stepped in many times and protected the little people from corporate greed!" D. Dave, Melanie and Devonte are all expressing the narrow view of corporate social responsibility.

B

According to the textbook, which of the following statements about corporate strategy with legal counsel is/are true? A. It is considered a sound strategy for a corporation to rely exclusively on attorneys to drive the legal decision-making process because they are the experts in the law and will generally understand the business side of things better than many corporate managers. B. Research indicates that management working cooperatively with attorneys will add value to the business. C. If one can understand the fundamentals of legal theory and how they impact a business, this is all that is needed to be able to understand how legal decisions should be made in a business context. D. All of the answer choices are correct.

B.

Donovan works for a corporation as general legal counsel. Which of the following would be typical of the duties that a person in his position would perform in the U.S. legal system? A. Managing one or more associate attorneys B. Selecting and supervising lawyers from outside law firms C. Being a corporate officer of the company, called a secretary D. All of the answer choices are correct.

D

Congress is drafting a piece of legislation that legalizes marijuana. It has not yet passed both Houses of Congress by a majority vote or been signed by the president. This is known as a:

Bill

Which of the following is a private arbitration?

Billy signed an employment contract with Big Corp. It has an arbitration clause in it.

Garp signed a contract with Tech Corp that had a binding arbitration clause. A dispute arose between Garp and Tech Corp and the matter was heard by an arbitrator. The arbitrator awarded Tech Corp $50,000. Under which of the following circumstances may a court judge set aside the award of the arbitrator in the hearing?

Both an arbitrator's refusal to hear relevant evidence that prejudices a party's rights and bias against one's gender are grounds for setting aside an arbitrator's award.

Delroy joined with hundreds of other people in a legal action where together they sued Implantco for producing a hernia mesh device that was implanted in them during surgery and later caused complications such as swelling and infections. What is the name for this legal action?

Class action

Sharma was a trial attorney representing a defendant in a lawsuit. She was asking a series of questions of a witness for the opposing party in a lawsuit. These questions came after the plaintiff's attorney had asked questions of the witness. What is this form of questioning called?

Cross examination

Which of the following statements about ethics is true? A. Ethics and law are both coexistent and synonymous. B. The moral minimum approach to ethics holds that corporations should minimize ethical responsibility to society and maximize profits for shareholders. C. Stakeholder is a narrow term that only includes those who have a stake in how much in profits a corporation makes. D. Primary stakeholders are those directly impacted by a decision a corporation makes.

D

A long-arm statute would be triggered when A. Darcy, a resident of Kentucky, is suing Elizabeth, a resident of West Virginia, in Kentucky based on an accident in Kentucky in which Darcy is alleging Elizabeth's negligence. B. Wickham, a resident of Maryland, owns a vacation home in the state of Washington. Bingley, a person who rented Wickham's vacation home, was injured when a mirror in the home broke. Bingley is suing Wickham in Washington. C. Georgiana, a resident of Arkansas, is suing Lydia in Arkansas, who has a Nebraska-based business making jewelry. Georgiana purchased the jewelry from Lydia, which caused a severe allergic reaction, while Lydia was selling products from a booth at a street fair in Eureka Springs, Arkansas. D. All of the answer choices involve situations where a long-arm statute would be triggered.

D.

Audie is signing a contract. He doesn't mind the idea of alternative dispute resolution (ADR) but wants to preserve his right to later have any dispute that arises under the matter heard in court. Which of the following would provide him with the right to have his case heard in court after ADR? A. Nonbinding arbitration B. Mini-trial C. Mediation D. All of the answer choices would provide Aude the right to later have his case heard in court.

D.

In which of the following situations would jurisdiction over an out-of-state defendant be likely to be exercised by a court? A. Trickyco, based in North Dakota, was sending fraudulent direct mail pieces that were victimizing people in South Dakota. Trickyco had no physical presence outside of North Dakota. Brianna, who was defrauded out of $10,000, sued Trickyco in South Dakota. B. Fraudco, based in Utah, set up a website in which they sold defective products to customers in several states throughout the Southwest. No Fraudco representative ever left Utah on any official business and Fraudco had no office outside of Utah. Steve, a resident of New Mexico, sued Fraudco in New Mexico, where he had ordered a Fraudco product online. C. Shiftyco, based in Colorado, had a sales representative who regularly visited Tennessee to conduct business, but had no other presence in Tennessee. Violet was harmed by a Shftyco product and is suing Shiftyco in Tennessee. D. All of the situations are ones in which jurisdiction over an out-of-state defendant would be likely.

D.

Jada was shocked to receive documents indicating she was being sued by Martin. The litigation process has not advanced beyond this stage. She consulted with an attorney and believes that her employer, Tortco, is the proper party for Martin to sue. Which of the following is an available remedy that Jada may presue under these circumstances?

File a cross-claim

LaShonda is a resident of Wisconsin. While visiting Six Flags Over Georgia in Atlanta, she was criminally assaulted by Hans, a Minnesota resident. Ordinarily, venue in this criminal case would originally be in

Georgia.

Jeremy is a vice president and loan officer for Small Town Credit Union. He has an opportunity to make a loan to a customer that he suspects will be used to fund the customer's illegal gambling operations. However, Jeremy will make a substantial bonus from making the loan, which he will use to buy his elderly mother a motorized wheelchair. He has defined the ethical dilemma. According to the manager's paradigm of ethical decision making, what would be Jeremy's next logical step after defining the dilemma?

Identifying the impact of the decision on primary and secondary stakeholders

Aunt Betsey is sick and tired of neighbors who walk their dogs across her front yards. She is considering going to district court to stop the trespassers. What type of remedy should she pursue?

Injunction

The City of Draconia has informed Miko that they are going to evict her from her land and auction it off for nonpayment of $100 in taxes. Miko is contesting the tax bill and wants to stop them from evicting her and auctioning off the land. Which of the following would best enable Miko to accomplish this?

Injunction

Which of the following is true of arbitration?

It is similar to a trial in that the arbitrator functions much like a judge.

Karin is a federal court judge looking at a bill passed by Congress and signed by the president into law. A case challenging this law on constitutional grounds is before her appellate court and she has determined the law to be unconstitutional. What is the name for this judicial action?

Judicial review

Emily went to court to get the court to stop Laura, her neighbor, from driving her car across Emily's property. Laura had been driving across the property for 10 years, and Emily had finally had enough. What defense might Laura have against Emily's claim?

Laches

Mandita, who lives in Los Angeles, California, suffered burns from a blow drier she'd purchased from Chang Manufacturing U.S.A.. In which of the following situations would Mandita be least likely to have personal jurisdiction in a California court over Chang, which is headquartered in New York?

Mandita exchanged some emails and phone calls with a representative from Chang who was based in Chang's New York office.

Janie is trying to work out the differences between the parties to a dispute and help them resolve it within one week, but if she cannot, she then has the power to render a decision in the dispute. Which of the following forms of alternative dispute resolution (ADR) does this most closely resemble?

Med-arb

The broadcast news test advises corporate executives to _______.

Only do those things in secret that you would not mind becoming public, that is, showing up in the broadcast news

Constitutional law and administrative law are known in the United States as _______________ sources of law.

Primary

Jennifer's complaining about a patently unfair employment contract she signed. She wants to be released from the terms of the contract, which states in the fine print that she must "Allow the company President to adopt her first-born child". Which of the following would describe the best course of action to get her out of the contract?

Rescission

Shawna sued her former employer for wrongful termination. The state in which she lives has a law requiring that she arbitrate the case. If Shawna is not satisfied with the decision of the arbitrator, what are her options?

She has an automatic right to appeal to a trial court.

Stare decisis is a Latin phrase that means ____________________________.

Similar cases with similar facts and issues should have similar judicial outcomes.

LaQuisha paid Francis for an original Jean-Michel Basquiat painting, but while he accepted her money, he has not given her the painting. Which of the following equitable remedies would be appropriate for LaQuisha to use in her legal proceeding against Francis to compel him to turn over the painting?

Specific performance

Walker, a federal court judge, cited several prior cases in reaching her decision in a case, deciding her case in a manner similar to the cases she cited. This is known in the law as the process of:

Stare decisis

The State of Colorado has a law stating that you may not be in possession of more than four ounces of certain controlled drugs. This is an example of which of the following types of law?

Substantive law

Which of the following laws involves a quasi-suspect classification under the Fourteenth Amendment?

The city of Discrimville prohibits people who were born to unwed mothers from working in government run daycare facilities.

Hardcore Brewery featured photos of young people giving gestures considered obscene by many people on their beer cans and beer bottle labels. The state of Oregon banned the sale of Hardcore Brewery beer in their state based on a law forbidding obscene speech. If Hardcore Brewery challenges this law in federal court, which of the following standards will the court apply to the Oregon law?

The court will ask whether Oregon has a substantial government interest in regulating the speech.

Hanlon Hedley has decided to cut costs and pay dance instructors less at her dance studio. Hanlon will also spend less time and money developing choreography and not offer free videos of shows to patrons of the studio. Which of the following groups is most likely to be a primary stakeholder of the Hanlon Hedley Dance Studio?

The dance instructors.

Which of the following is true of the U.S. court system?

U.S. Supreme Court appellate review is discretionary.

Rick was speaking at the corporate annual meeting discussing the new drug they are rolling-out. He states that although the medication is only effective for 80% of patients, about 5% of the patients that take it will suffer serious issues that would fall within the companies acceptable goals. Which ethical philosophy is Rick advocating?

Utilitarianism

Rocket Corporation's slogan was "Treat customers and the world with respect." This principle informs Rocket's strategies and plans and guides employees. According to the text, this is an example of:

Values management

Leticia was in a conference room being questioned by an attorney. The only other person in the room was a person from the court making a written record. Which of the following is this?

a deposition

An example of a forum selection clause is

a provision in a contract between Levin and Anna which says that if there is a dispute between the parties, it will be in a court within Levin's state.

The Immigration and Naturalization Service, a federal agency involved in immigration security, has applied a rule stating that prior to deportation, an individual must be allowed a due process hearing at which they can make a case against their deportation. This would be which of the following types of laws?

administrative laws

Dalvosta, Georgia has passed a law banning the building of apartment complexes higher than 100 feet. This law would be defined as:

an ordinance.

Dmitri was a judge in the state of Delaware. He presided over a trial in which the plaintiff and defendant had agreed to have him act as both finder of fact and law. This is known as a/an _______.

bench trial

Tyrell Corporation, headquartered in Indiana, and Blender Corporation, headquartered in Michigan, entered into a contract with a provision stipulating that any legal disputes will be conducted using Michigan law. This agreement is called a

forum selection clause.

Act Now!, an organization devoted to voting rights, applied for a permit to protest the closing of polling places in poor neighborhoods. Genevieve, the head of the organization, wanted the protest to be on the lawn of the county courthouse. The county denied the permit on grounds that it would prevent people from accessing the courthouse. If Act Now! challenges this action in court, it will be reviewed by the judge using

intermediate scrutiny.

The city of Happy Trails passed an ordinance which prohibited women from working for the police department or sheriff's department in a law enforcement position. If Geneva and a group of women who were denied law enforcement jobs challenge the city ordinance in federal court, when considering the city ordinance, the courts will employ

intermediate scrutiny.

Bennie was appointed by the state to act as a go-between, helping two parties to a lawsuit to resolve their dispute. Bennie's job did not allow him to make a final decision in the matter. Bennie is known as a/an: ______________________.

mediator

Darryl believed that right and wrong were established by his religious beliefs and followed the tenets of his religion in his dealings with others. This is known as a:

principles-based approach

Katelyn was suspended from State University after a professor suspected her of cheating on an economics exam. The determination of whether the state government acted properly and gave her an opportunity to present her evidence at a fair and neutral hearing is an analysis of

procedural due process.

The federal government imposed a tax on all oil companies to fund a federal agency devoted to researching alternatives to fossil fuels. If Big Oil Incorporated challenges this tax in federal court, what level of scrutiny will the court apply?

rational basis scrutiny.

Butler was shopping at Grocerymart and slipped and broke his tailbone because an employee had dropped a gallon of milk in the aisle. This was on October 25, 2019. The state law that requires Butler to file his lawsuit by October 25, 2022, is known as a/an ________________.

statute of limitations

Stephanie owned Goodco, a company in which all after tax profits were donated to a local battered woman's shelter. This is an example of which of the following views of corporate social responsibility?

the broad view

First Trust Bank had a slogan: "Profits should never come before people." This is an example of which of the following perspectives on corporate social responsibility?

the broad view, or management's hand theory

Corruptco is a large machine shop that fabricates metals. Corruptco maximizes profits and shareholder value by polluting the local river, where fish are often killed off due to the pollution, rather than installing a pollution abatement device. While this is not specifically in violation of the law, it does put burdens on the local community. Which theory of corporate social responsibility is Corruptco exhibiting?

the narrow view, or invisible hand theory

Francis was upset at Greg, who just threw a paper bag that had the unwanted remains of his cheeseburger and fries into a ditch. Francis said: "What would the world be like if everyone littered like that, Greg?" This is known as the _______.

universalization approach

Which of the following courts renders decisions binding only on the parties involved in the dispute?

A U.S. District Court.

According to the textbook, which of the following statements about lawyers is/are true? A. Corporate lawyers typically spend a large percentage of their time in court. B. The general counsel is a phrase for one who works in an outside law firm and handles cases on general business law issues. C. In larger organizations, corporate counsel are often part of the management or executive team. D. All of the answer choices are correct.

C

At an event on the White House lawn, the President declared that the second Tuesday of April would be "National Be Kind to Lawyers Day." Which of the following is this declaration? A. Executive order B. Presidential declaration C. Ceremonial proclamation D. Substantive proclamation

C

Which of the following statements is true? A. Dispute resolution is a purely technical and legal matter that should best be left to the sole discretion of attorneys. B. The options available to business owners in the dispute resolution process have diminished significantly in recent years. C. Dispute resolution requires a cost-benefit analysis. D. All of the answer choices are correct.

C.

Which of the following is correct about the law in the United States? A. To be defined as law, something must have been codified by a legislature. B. Law creates duties and obligations, but not rights, as these are exclusively created by constitutions. C. Law is prescribed by controlling authority. D. All of the answer choices are correct.

C

The relationship between ethics and law is that: A. an action can be legal but not ethical. B. an action can be ethical but not legal. C. an action can be both legal and ethical. D. All of the answer choices are correct.

D.

Which of the following circumstances involves a remand? A. Ronnie, a federal appeals court judge, asks a question of a litigant who has a matter on appeal before her court during a live question and answer session. B. Phil, a state trial court judge, decides a case in a matter in which there is no jury. C. Esther, federal district court judge, follows precedent from a previous U.S. Supreme Court decision and decides the case in favor of the plaintiff. D. Vashti, a state appeals court judge, reverses a trial court case and sends it back to the trial court with instructions that a different rule should be followed.

D.

Which of the following statement(s) is/are true? A. If Heinrich is driving recklessly and smashes his car into Shanna, Heinrich could be both prosecuted and sued for his actions. B. Procedural law sets out the steps that the state of Iowa must take if it wishes to have its agents break into the office of Benjamin and search his computer for evidence of embezzlement. C. In the United States, breach of contract is classified as civil law, and the laws that give a party the right to sue for breach of contract are known as substantive laws. D. All of the answer choices are correct.

D.

Selina has been served with a summons and complaint. Which of the following options does she have?

File a motion to dismiss

Chan wants to file a lawsuit. What will be the first stage of litigation for him?

Pleadings

Congress attached spending conditions to federal funds granted to states to maintain interstate highways. The conditions stated that a state would have federal highway repair funds cut back by 10 percent if a state raised its speed limit on public roads higher than 70 miles per hour on grounds that safer highways would promote the federal welfare. The state of Wyoming raised their speed limit to 80, had their funds reduced, and challenged the congressional conditions in federal court. What is the likely result of their challenge?

The federal conditions will be upheld as constitutional, as a constitutional exercise of Congress's spending authority.

Bennie's goal in life, as CEO of Nature's Finest Organic Foods, was to provide eco-friendly food products imported from third world farmers. His company motto, which was printed on every label of his products, was: "Do the most good and the least harm for the world." Which of the following approaches does Bennie's corporate slogan best represent?

The utilitarian approach to ethics

What is the name for the petition to the U.S. Supreme Court to request that the court review a case, and roughly what percentage of cases does the Supreme Court agree to hear each year?

Writ of certiorari, 1 percent

Julio is suing Sanchez for breach of contract. He wants to get some documents from Sanchez which he believes will help him prepare his case. What is the term for this procedure?

request for production