Business Law Exam 1

The Constitution grants many of our basic liberties, such as freedom of speech and free exercise of religion. These liberties are primarily found in the preamble to the Constitution. amendments to the Constitution. body of the Constitution. common law.

amendments to the Constitution.

When the Food and Drug Administration prohibits a certain drug from being marketed in the United States, this is private law. an agency regulation. legal negativism. an executive order.

an agency regulation.

Congress is concerned that too much pollution is being emitted into the air over major cities. To reduce this air pollution, Congress passes the Clean Air Act. After disagreements over the definition of "pollution," the Environmental Protection Agency (EPA) defines it as anything emitted into the air. This definition is a legislative rule that companies must follow. an interpretive rule that does not change the law. adjudication by the agency. not valid until ratified by Congress.

an interpretive rule that does not change the law.

Riko works for the Internal Revenue Service (IRS) and believes the IRS and other agencies do important work for the government. Riko's friend Ariel disagrees. As a proponent of administrative agencies, Riko should tell Ariel that administrative agencies have too much power. have unique expertise in complex areas where this skillset is needed. provide guaranteed jobs. save taxpayers money as there are no campaigns to fund since agency heads are not elected.

have unique expertise in complex areas where this skillset is needed.

The law is involved in nearly every facet of our lives and has the qualities of being both intriguing and essential. ethical and acceptable by all. applicable to some citizens while nonapplicable to others. constitutional and part of the common law.

intriguing and essential.

If Oregon passed a statute that prohibited liquor stores from engaging in any kind of advertising, that statute would be valid as an exercise of police power. valid, as alcohol is illegal for minors. invalid as a violation of the Commerce Clause. invalid as an unreasonable restriction of free speech.

invalid as an unreasonable restriction of free speech.

The Environmental Protection Agency (EPA) is concerned that too much pollution is being emitted into the air over major cities. To reduce this air pollution, the EPA passes a rule that requires companies to use technology to reduce air pollution. The EPA believes that a California company is not following the rule. The EPA may do nothing; only law enforcement can investigate violations. do nothing; only Congress can investigate violations. investigate the company's finances. investigate the alleged violation.

investigate the alleged violation.

The doctrine of precedent requires that a victim testify. that the defendant testify. a 12-member jury of the defendant's peers. judges to base rulings on previous cases.

judges to base rulings on previous cases.

Common law refers to law that is the same or similar in all the states. law made when judges decide cases and then follow those decisions in later cases. law made by legislatures in the form of statutes. the legal systems of France, Germany, and Italy.

law made when judges decide cases and then follow those decisions in later cases.

The doctrine of stare decisis makes the legal process more expensive. is an equitable remedy. makes the law more predictable. is unimportant to the common law.

makes the law more predictable.

A subpoena duces tecum is different from an ordinary subpoena in that a subpoena duces tecum can only be given to an expert to require a personal appearance before a court or administrative hearing. is binding on a person even if it is mailed to the person rather than handed to them by a process server. allows for privileged or confidential information to be turned over to a court or administrative agency. requires the person to produce certain documents or things.

requires the person to produce certain documents or things.

Three practices to help us avoid ethical traps are focus on the matter at hand, make quick efficient decisions, and consider what will increase profitability. slow down, remember your Life Principles, and do not trust your first instinct. think about what society expects, think about what the global community expects, and follow all national and international mores. go with your gut reaction, ignore any cognitive dissonance, and consider your own ethical values.

slow down, remember your Life Principles, and do not trust your first instinct.

Stare decisis provides our legal system with morality. stability. professionalism. statutory law.

stability

Criminal law is usually statutory in nature because statutory law is prospective in nature; a court cannot retroactively declare that an action was a crime. statutory law is more credible than the common law. stare decisis cannot be applied to crimes. precedent cannot be followed in criminal cases.

statutory law is prospective in nature; a court cannot retroactively declare that an action was a crime.

The Environmental Protection Agency was investigating whether Exgrow Inc. violated the Clean Air Act. Exgrow refused to give the EPA its computerized reports concerning pollution. To get the reports, the EPA should use a(n) stare decisis. de novo. excaliber. subpoena duces tecum.

subpoena duces tecum.

An example of a statute would be the president of the United States issuing an executive order banning the use of federal funds for abortion. a North Dakota judge issuing an injunction prohibiting a man from contacting his ex-wife. the Ohio legislature passing a law requiring all bicycle riders to wear a helmet. the Federal Communications Commission instructing all radio stations to refrain from broadcasting "indecent" programming during daylight hours

the Ohio legislature passing a law requiring all bicycle riders to wear a helmet.

Laws are found in different sources, which include statutes, presidential veto, and precedent. precedent, stare decisis, and court orders. the U.S. Constitution, statutes, the common law, and administrative law. the U.S. Constitution, Congressional acts, the common law, and statutes.

the U.S. Constitution, statutes, the common law, and administrative law.

According to Immanuel Kant, the truth should be told, no matter the outcome. This is the idea behind what he called moral universalism. the categorical imperative. moral relativism. the veil of ignorance.

the categorical imperative.

The president of the United States creates federal common law. can veto congressional legislation. determines the constitutionality of statutes. passes statutes.

can veto congressional legislation.

Congress passes a law that makes it illegal to discriminate against people based on their appearance. The U.S. Supreme Court examines the law pursuant to a case brought before the Court and rules that the law is unconstitutional and is thereby void. Congress does not approve of this ruling and therefore passes a new law expanding the group of people who may not be discriminated against. This is an example of judicial power. executive power. checks and balances. stare decisis.

checks and balances.

The authors of the Constitution were not content to divide government power. They also wanted to give each part of the government some power over the other branches. This is known as stare decisis. precedent. veto power. checks and balances.

checks and balances.

The term corporate social responsibility is best defined as an organization's obligation to contribute positively to the world around it. maximize profits for its shareholders. be environmentally responsible. value its employees above all other stakeholders.

contribute positively to the world around it.

Judicial review can best be described as the power of a federal court to abstain from adjudicating major issues and to leave such matters to legislatures. take it upon itself to decide issues on constitutional grounds. declare a statute or governmental action unconstitutional and void. take private property for public use.

declare a statute or governmental action unconstitutional and void.

Our founders created federalism, which is a triple-layered system of government with a national government, state governments, and administrative agencies all exercising important but limited powers. system where the state governments take precedence over the national government. double-layered system of government, with the national government and state governments each exercising important but limited powers. system where the national, federal government is supreme.

double-layered system of government, with the national government and state governments each exercising important but limited powers.

The Environmental Protection Agency (EPA) is concerned that too much pollution is being emitted into the air over major cities. To effectively reduce this air pollution, the EPA should hold a public hearing about the need to reduce air pollution. investigate the causes of air pollution. propose a bill to resolve it. engage in rule making.

engage in rule making.

The U.S. Constitution is meant as a guideline for the states but does not have to be followed by the federal government. ensures that the United States is not a monarchy. establishes a national government with its four branches and establishes a system of checks and balances among the four branches. establishes a national government with its three branches, establishes a system of checks and balances among the three branches, and guarantees many basic rights to the American people.

establishes a system of checks and balances among the three branches, and guarantees many basic rights to the American people.

The three branches of government in the United States are the executive, legislative, and administrative. administrative, executive, and statutory. executive, legislative, and judicial. administrative, legislative, and international.

executive, legislative, and judicial.

The Environmental Protection Agency (EPA) is concerned that too much pollution is being emitted into the air over major cities. To reduce this air pollution, the EPA passes a rule that requires companies to use technology to reduce air pollution. Companies must follow this rule because it is a legislative rule. do not have to follow this rule because it is an interpretive rule. do not have to follow this rule because only statutes, not agency rules, have the force of law. do not have to follow this rule until the president approves it.

must follow this rule because it is a legislative rule.

Judge Tatum is a lower court judge in Minnesota. A case comes before Judge Tatum regarding the admissibility of psychologists as expert witnesses. A higher court in Minnesota earlier ruled that psychologists cannot be expert witnesses because they are not medical doctors. Judge Tatum does not need to follow this ruling due to judicial discretion. must follow this ruling because of stare decisis. does not need to follow this ruling because it is incorrect. must follow this ruling because of the common law.

must follow this ruling because of stare decisis.

If the title of an appellate court case appears as Jones v. Smith, then it is correct to say that Jones is the plaintiff and Smith is the defendant. it means that Smith won the trial court decision. one cannot determine which party is the plaintiff because when a defendant loses a trial and files an appeal, some courts (but not all) reverse the names of the parties. the trial judge was Jones, and the appellate judge is Smith.

one cannot determine which party is the plaintiff because when a defendant loses a trial and files an appeal, some courts (but not all) reverse the names of the parties.

Judges have the authority to issue court orders that require people or companies to appeal their court orders. place discretionary obligations on specific people or companies. require Congress or state legislatures to ratify their court orders. place binding obligations on specific people or companies.

place binding obligations on specific people or companies.

In the House of Representatives, a state's voting power is based on its relative wealth. date of entry into the Union. physical size. population.

population.

The concept of stare decisis is closely related to the concept of precedent. the bystander rule. statutory law. enabling legislation.

precedent

When courts decide a case, they tend to apply the same legal rules that other courts have used in similar cases. The similar case that is applied to the current case is known as precedent. stare decisis. constitutionality. civil law.

precedent

Generally, constitutional protections do not apply to acts of the federal government. state government. administrative agencies. privately owned businesses.

privately owned businesses.

The goal of utilitarian ethics is to establish rules for why certain behaviors are ethical. do the right thing, no matter the result. produce the greatest good for the greatest number of people. establish universal ethical rules that apply to all people.

produce the greatest good for the greatest number of people.

Immigrants are not being treated well at the border due to overcrowding. Communities along the border are becoming concerned about this new development and hope it can be resolved. Senator Maloney is also concerned. As a senator, Senator Maloney is in a unique position to poll society as to what should be done. propose a bill to address this new issue and concern. ignore the issue. research the issue.

propose a bill to address this new issue and concern.

Does ethical behavior maximize profitability? Yes, there is concrete evidence that ethical behavior will often maximize profitability. No, there is concrete evidence that unethical companies will often outperform ethical companies. Although there is no guarantee that ethical behavior pays in the short or long run, there is evidence that the ethical company is more likely to win financially. There is strong evidence that ethical behavior pays financially in the long run but not in the short run.

Although there is no guarantee that ethical behavior pays in the short or long run, there is evidence that the ethical company is more likely to win financially.

Which of the following is not a stakeholder? A business competitor Shareholders Employees Customers

A business competitor

The U.S. Supreme Court hears a case and holds that women who are paid less than men are not entitled to a pay increase. Congress decides this is an unfair ruling. Congress may do nothing. ask the U.S. Supreme Court to rehear the case. propose a bill to remedy this unpopular judicial ruling. request that the president veto this court ruling.

propose a bill to remedy this unpopular judicial ruling.

The first ten amendments to the Constitution are known as the Preamble. Bill of Rights. Supremacy Clause. Articles of Confederation.

Bill of Rights.

Which type of law regulates the rights and duties between parties? Criminal law Administrative law Civil law Judicial law

Civil

Which of the following statements accurately defines civil law? Civil law concerns behavior so threatening that society outlaws it altogether. Civil law regulates the rights and duties between parties. Civil law results in imprisonment and fines. Civil law is a form of administrative law.

Civil law regulates the rights and duties between parties.

The primary source of federal power to regulate trade between states is the Supremacy Clause. Commerce Clause. power of eminent domain. Takings Clause.

Commerce Clause.

Jamal was recently hired as a sales representative for a pharmaceutical company. Jamal notices that all the other sales reps "pad" their expense accounts by claiming meals with clients that never took place and then pocket the extra money. Jamal figures that because everyone else is cheating on their expense accounts, he might as well do the same. What ethics trap is Jamal falling into? Following orders Competition Conformity Lost in a crowd

Conformity

Statutes are laws passed by administrative agencies. state constitutions. Congress or a state legislature. local governments.

Congress or a state legislature.

Which of the following statements accurately defines criminal law? Criminal law regulates the rights and duties between parties. Criminal law results in equitable remedies and money damages. Criminal law concerns behavior so threatening that society outlaws it altogether. Criminal law is a form of constitutional law.

Criminal law concerns behavior so threatening that society outlaws it altogether.

Which of the following statements best exemplifies how society as a whole benefits from ethical behavior? Consumers are willing to pay more for a product they believe to be ethically produced. People feel better when they behave ethically. Unethical behavior can be very costly. Ethical behavior builds trust which is important in all of our relationships.

Ethical behavior builds trust which is important in all of our relationships.

Judge Tatum is a lower court judge in Minnesota. A case comes before Judge Tatum regarding the admissibility of psychologists as expert witnesses. A higher court in Minnesota earlier ruled that psychologists cannot be expert witnesses because they are not medical doctors. Courts in other states, however, have ruled that psychologists can be expert witnesses. Judge Tatum ignores this earlier ruling that furthers which goal for which the common law strives? Predictability Precedent Flexibility Constitutionality

Flexibility

Which statement about interpretive rules is correct? Interpretive rules are the most important agency rules. Interpretive rules do not change the law. Interpretive rules are much like statutes. Interpretive rules are made by the legislature.

Interpretive rules do not change the law.

Using moral relativism can help people resolve their ethical dilemmas. There are problems with using moral relativism, however. What is a problem with moral relativism? It is difficult to measure the utility of an action. The ends do matter. Someone could have legitimate reasons to keep some things private. It can justify anything.

It can justify anything.

How does unethical behavior in an organization affect its workforce? It instills fear in employees, making them more productive. It helps workers focus on the goal of profitability. It creates a workforce that is more informed and, therefore, motivated. It creates a workforce that is cynical and resentful.

It creates a workforce that is cynical and resentful.

Using utilitarian ethics can help people resolve their ethical dilemmas. There are problems with using utilitarian ethics, however. What is a central problem with using utilitarian ethics? It is difficult to measure the utility of an action. The ends do matter. Someone could have legitimate reasons to keep some things private. It can justify anything.

It is difficult to measure the utility of an action.

Which person held the belief that the circumstances into which we are born play an important role in our personal outcome? Immanuel Kant John Stuart Mill Milton Friedman John Rawls

John Rawls

Precedent is binding only on which courts? Trial courts Appellate courts Higher courts Lower courts

Lower courts

Which person argued that a corporate manager's primary responsibility is to the shareholders of the organization and that managers should make the company as profitable as possible while also complying with the law? John Rawls John Stuart Mill Immanuel Kant Milton Friedman

Milton Friedman

Judge Tatum is a lower court judge in Minnesota. A case comes before Judge Tatum regarding the admissibility of psychologists as expert witnesses. A higher court in Minnesota earlier ruled that psychologists cannot be expert witnesses because they are not medical doctors. Judge Tatum follows this earlier ruling that furthers which goal for which the common law strives? Predictability Flexibility Precedent Judicial discretion

Predictability

Some presidents have argued that they should have the power of a line-item veto, which is the authority to nullify or cancel specific provisions of a bill, usually a budget appropriations bill, without vetoing the entire legislative package. A line-item veto is a challenge to which of the following principles? The Supremacy Clause Executive privilege The Commerce Clause Separation of powers

Separation of powers

Using the Front Page test can help people resolve their ethical dilemmas. There are problems with using the Front Page test, however. What is a problem with the Front Page test? It is difficult to measure the utility of an action. The ends do matter. Someone could have legitimate reasons to keep certain things private. It can justify anything.

Someone could have legitimate reasons to keep certain things private.

In the United States, the powers of government are divided between one national government and 50 state governments. This type of system is called federalism. democracy. confederation. oligarchy.

federalism

The United States invades a small country in Europe. Brittany is upset at this military action and believes what the United States is doing is unethical. In protest, Brittany burns the American flag. Brittany is arrested for this action. At trial, Brittany argues that the First Amendment protects her based on the common law. stare decisis. precedent. fundamental rights such as freedom of speech.

fundamental rights such as freedom of speech.

The first ten Amendments to the U.S. Constitution guarantee many liberties to American citizens. were written decades after the original Constitution was written. apply only in federal court, not state court. apply only in state court, not federal court.

guarantee many liberties to American citizens.

The president vetoes a bill that Congress believes is important for the United States to have in place. Congress may do nothing because a presidential veto is a final action. have both houses re-pass the bill, each by a two-thirds margin. have the House only re-pass the bill with a two-thirds margin. have the Senate only re-pass the bill with a two-thirds margin.

have both houses re-pass the bill, each by a two-thirds margin.

The Securities and Exchange Commission (SEC) is an independent agency whose function is to regulate securities in the stock market. The SEC thus creates rules. These rules are statutes. administrative law. executive orders. common law.

administrative law.

The Kentucky court system has different levels: the district court, a trial court of limited jurisdiction; the circuit court, a trial court of general jurisdiction; the Kentucky Court of Appeals, an appellate court; and the Kentucky Supreme Court, the highest court in Kentucky. The Kentucky Court of Appeals hears a case regarding preliminary breath tests and decides that preliminary breath test results may be entered into evidence at trial. This case is binding on the district and circuit courts. all courts in Kentucky, including the Kentucky Supreme Court. the district court only. no courts, as the use of preliminary breath tests is unconstitutional.

the district and circuit courts.

Angel works for the Environmental Protection Agency and believes in its mission. She understands that all of the following are true about federal administrative agencies except the heads of administrative agencies are elected. administrative agencies have unique expertise in complex areas where this skillset is needed. the president may nominate the heads of administrative agencies. the rules and regulations of administrative agencies have the force of law.

the heads of administrative agencies are elected.

The United States Constitution is the supreme law of the land. a discretionary guideline for the federal government to follow. a guideline for states to follow in developing their own state constitutions. stare decisis.

the supreme law of the land.

Which scenario is an example of a true ethics dilemma? The Tipton Company considers running advertisements to publicize the contribution it made to a national charity that offers tutoring to low-income children. Employees at Spiffy Hair Salon ask management if they can set up a booth at an inner-city street fair to give free haircuts to anyone who needs one. Sure-Good Soup Company is thinking about using more expensive organic vegetables in its products to promote consumer health, even though company profits might be reduced. At the request of many customers, Maxim Company considers pulling advertising from a radio talk show that endorses "fringe" conspiracy theories.

Sure-Good Soup Company is thinking about using more expensive organic vegetables in its products to promote consumer health, even though company profits might be reduced.

The issue of the constitutional protections afforded flag burning was addressed in Texas v. Johnson. United States v. Lopez. Marbury v. Madison. Palmore v. Sidoti.

Texas v. Johnson.

When an appellate court decides a case, the court has options for rendering the decision. What may an appellate court rule when rendering the decision in a case? Choose three answers. The appellate court may reverse the decision of the trial court. The appellate court may refer the decision of the trial court to a higher court without hearing the case. The appellate court may affirm the decision of the trial court. The appellate court may remand the case.

The appellate court may reverse the decision of the trial court. The appellate court may affirm the decision of the trial court. The appellate court may remand the case.

Using the categorical imperative can help people resolve their ethical dilemmas. There are problems with using the categorical imperative, however. What is a problem with using the categorical imperative? It is difficult to measure the utility of an action. The ends do matter. Someone could have legitimate reasons to keep some things private. It can justify anything.

The ends do matter.

What is ethics? Always telling the truth The study of how people should behave Following the law The rules by which you live your life

The study of how people should behave

The United States Supreme Court has the power to appoint judges to serve on the Supreme Court. void laws passed by Congress. issue executive orders. ratify treaties.

void laws passed by Congress.