Ch 1 - Ethics, Law, and Legal Reasoning (Chapter Test)

Which of the following is a true statement of the powers of a branch of the federal government?

The power to enact laws is vested in the legislative branch.

What do administrative agencies do?

They create and enforce regulations.

Which of the following is the supreme law of the land?

U.S. Constitution

Steps for creating a statutory law include filing a bill in the legislature, debating and voting on the bill in committees and in the legislative assembly, and ultimately:

becoming an act when signed by the president or state governor, or if vetoed, when the veto is overridden.

Ethics is the consideration of how one should act, based on which of the following concepts?

cause and effect strict legality and legal compliance • morality, or principles of right and wrong the moral minimum

The legal rights and duties between parties are regulated by:

civil law.

What is the term for the body of law that has developed over centuries, derived from custom and judicial precedent?

common law

Which of the following types of law originated from early English history in an effort to provide a body of law that applied to the entire English realm?

common law

State statutory law is created by:

elected members of the state legislature.

Which of the following activities is an example of corporate social responsibility?

funding a research project that supports the company's marketing initiative for a new product ensuring all employees meet minimum licensure standards careful compliance with employee safety regulations •. establishment of a foundation that funds high school educational initiatives

What is the term used for the entire body of enforceable rules set by a government?

law

Which branch of government creates statutory law?

legislative

Which branch of government has the authority to enact law?

legislative

How a hearing or court case is conducted is governed by:

procedural law.

Substantive law governs a person's:

rights and responsibilities.

What term describes the principle set up in the U.S. Constitution that gives each branch of the government the power to control or influence the other two branches?

separation of powers

Which doctrine provides that each branch of government has its own constitutional authority and should remain independent of other branches of government?

separation of powers

The doctrine that requires a lower court to follow the decisions of a higher court that involve similar issues, laws, and facts is the doctrine of:

stare decisis.

What is the term used for the types of laws passed by Congress?

statutes

What type of law creates, defines, and regulates legal rights and duties?

substantive

What source of law is the highest law of the land?

the U.S. Constitution

In ethics, compliance with the law is considered:

the moral minimum.

A company exhibits responsible corporate citizenship when it:

uses its wealth and influence to benefit society as a whole.

Which of the following statements are applicable to the doctrine of stare decisis? Choose 2 answers.

• A lower court must follow the precedent of a decision made by a higher court in the same jurisdiction. A court must follow the decisions of a higher court, even if the decision comes from another jurisdiction. • Stare decisis is a principle that arose out of the common law. A lower court may choose whether to follow the precedent of a decision made by a higher court in the same jurisdiction.

Which of the following illustrates a financial or non-financial cost of unreported unethical behavior to a company? Choose 2 answers.

• Sweet Home Diner lost half of its business when the community became outraged with the owner for failing to stop the racist social media postings of the restaurant manager. The Old Mill relocated one of its plants, at a cost of over $1 million, when it discovered it was polluting a local river. Brown Shoe Manufacturing, Inc. recently lost one-third of its stitching room employees to a nearby competitor. The chief executive officer decided to forego a portion of his salary so the company could increase the salaries of all employees. • Employee morale hit an all-time low when Scott, the line supervisor, ignored repeated instances of harassment by certain employees.

What are the three primary functions of law? Choose 3 answers.

• allowing for changes in social norms • resolution of conflicts • improving social stability establishing a code of ethics

Business law is a vast body of state and federal law governing business activities that includes statutes (codes), common law, court cases, and: Choose 2 answers.

• regulations. corporate citizenship. • constitutions. ethics.

Which of the following are methods of preventing unethical behavior? Choose 2 answers.

• terminating an employee for unethical behavior keeping an attorney on retainer • establishing a company code of ethics allowing lower-level managers to develop their own ethical rules

In the United States, who creates federal statutory law?

Congress

What is the relationship between law and morality?

Law and morality have some common applications but are not exactly the same thing.