business law exam 1
True or False: Making ethical decisions is most often best done by analyzing objective standards (such as profit or number of people fired), instead of subjective impacts on stakeholders.
False
True or False: The term moral minimum is best defined as the highest degree of ethical behavior expected of a firm.
False
True or False: The triple bottom line is a measure that includes: a corporation's profit, its impact on people, and how the corporation feels about it.
False
True or False: Typically, in a criminal case, one private party sues another private party based on a claim the defendant has failed to comply with a legal duty.
False
Secondary sources of law include a. state constitutions b. law review articles c. laws passed by local governing bodies d. regulations created by administrative agencies
b. law review articles
An example of a primary source of law would be: a. legal encyclopedias b. official comments to statutes c. Constitutional law d. legal treatises.
c. Constitutional law
True or False: If a party is unhappy about the decision of their case in their state supreme court, and it was a case involving state law, they can appeal it to the Federal Supreme Court.
False
True or False: Legal encyclopedias, law review articles, and treatises are sources of primary law.
False
True or False: Under the "stakeholder view," there is no group that ever has a greater stake in company decisions than the shareholders do.
False
True or False: "Law" includes both written laws and court decisions.
True
True or False: Controlling precedents are binding authorities.
True
True or False: In a case involving Internet transactions, jurisdiction can be met by a state through minimum contacts if the company conducts substantial business in that jurisdiction through online contracts or sales.
True
True or False: In the cost-benefit analysis utilitarian model, the focus is to always do the most amount of good for the most amount of people.
True
True or False: Legal encyclopedias, law review articles, and treatises are sources of primary law.
True
True or False: Mediation uses a neutral third party to help facilitate an agreement between the parties.
True
True or False: Rules issued by administrative agencies affect almost every aspect of the operations of a business.
True
True or False: The authority of a court to hear and decide a specific case is called jurisdiction.
True
True or False: The landmark case of Marbury v. Madison set the decision and precedent for judicial review.
True
True or False: Under a state long-arm statute, a court can exercise jurisdiction over certain nonresident defendants based on their activities within the state.
True
True or False: Under the doctrine of stare decisis, judges are required to follow the precedents established within their jurisdictions.
True
True or False: When concurrent jurisdiction exists, the parties may choose to bring the case in state or federal court.
True
What information can people request under the Freedom of Information Act? a. Agency budget information b. National security details c. Agency personnel information d. Personnel rules and practices
a. Agency budget information
The legislation that requires an administrative agency to respond to requests from citizens for agency records is called the: a. Freedom of Information Act (FOIA) b. Administrative Procedure Act (APA) c. Government in the Sunshine Act d. Information Transparency Act (ITA)
a. Freedom of Information Act (FOIA)
What information is exempt from access by a Freedom of Information Act request? Choose 2 answer choices. a. Personnel information about a particular person b. Information collected about the person making the Freedom of Information Act request c. Trade secrets d. Statistics about a specific subject
a. Personnel information about a particular person c. Trade secrets
What is the term given to an administrative decision that is unreasonable or implausible in light of the facts and evidence? a. arbitrary and capricious b. clearly erroneous c. abuse of discretion d. substantial error
a. arbitrary and capricious
Cornel and Deanna resolve their dispute over the destruction of Cornel's real property due to Deanna's excavation for an irrigation pond, by having a neutral third party render a binding decision. This would be: a. arbitration b. conciliation c. intervention d. rendition
a. arbitration
When an agency needs to enforce the law or its regulations, it may exercise which of the following powers? Choose 3 answers. a. issue a subpoena b. conduct a hearing to obtain a final order c. issue restraining orders d. investigate complaints and possible violations of its regulations or the law
a. issue a subpoena b. conduct a hearing to obtain a final order d. investigate complaints and possible violations of its regulations or the law
Analytica LLC files a suit against the United States, challenging a congressional enactment mandating that employers pay their employees' student loans. The process by which the court decides this issue is a. judicial review b. voir dire c. unconstitutional d. the rule of four
a. judicial review
The judicial branch may limit an administrative agency's actions by which of the following? Choose 2 answers. a. judicial review of the agency's orders on appeal b. judicial review of the agency's regulations c. a court's removal of an agency officer d. a court's modification of the agency's authority
a. judicial review of the agency's orders on appeal b. judicial review of the agency's regulations
Common law rules develop from: a. principles underlying judges' decisions in actual controversies b. regulations issued by administrative agencies c. statutes enacted by Congress and the state legislatures d. uniform laws drafted by legal scholars
a. principles underlying judges' decisions in actual controversies
Laws enacted by legislative bodies at any level of government make up the body of law generally referred to as: a. statutory law b. the basis of all law in the United States c. the supreme law of the land d. uniform law
a. statutory law
Which of the following statements correctly reflects the role of a federal administrative law judge (ALJ)? a. An ALJ's final order may only be overturned by a court if it is unreasonable b. An ALJ presides over an administrative hearing and issues an order that, when final, may be reviewed by a court c. An ALJ's final order may not be reviewed by a court d. An ALJ's final order may be re-tried in a federal district court
b. An ALJ presides over an administrative hearing and issues an order that, when final, may be reviewed by a court
Which of the following statements explains the formation and purpose of a federal administrative agency? Choose 2 answers. a. A federal administrative agency is given its authority in the U.S. Constitution b. Most federal administrative agencies are subject to the authority of the president, but some are independent c. An administrative agency is formed by enabling legislation that also provides the authority to establish regulations that will implement and enforce the law d. As part of the executive branch, a federal administrative agency is formed by the president to establish regulations that will implement and enforce the law
b. Most federal administrative agencies are subject to the authority of the president, but some are independent c. An administrative agency is formed by enabling legislation that also provides the authority to establish regulations that will implement and enforce the law
What must a party do before appealing an agency action in the court system? Choose 2 answer choices. a. Must have some theoretical basis for the appeal b. Must follow the agency appeal process c. Must decide whether to sue in state or federal court d. Must show direct harm
b. Must follow the agency appeal process d. Must show direct harm
Jason, a citizen of Kansas, wants to file a suit against Lora, a citizen of Michigan. Their diversity of citizenship may be a basis for: a. no court to exercise jurisdiction b. a federal court to exercise jurisdiction c. any court to exercise jurisdiction d. Kansas state court to have jurisdiction
b. a federal court to exercise jurisdiction
Which of the following are sources of administrative law? Choose 3 answers. a. agency guidance b. agency opinions c. executive orders d. agency regulations
b. agency opinions c. executive orders d. agency regulations
Many companies try and link ethics with law through creating: a. an external publicized code of conduct b. an internal code of conduct c. a legal code of ethics d. a code that applies to the public
b. an internal code of conduct
Bob wants to sue XYZ corporation, his employer, for violating his federally protected civil rights. He claims his employer's procedures do not apply equal rights. In what court should Bob bring suit? a. state court b. federal court c. probate court d. any court he wishes
b. federal court
Tyler, a citizen of Utah, files a suit in a Utah state court against SeaCoast Sales Corporation, a Washington state company that does regular business in Utah. Utah state court would have jurisdiction over SeaCoast because of: a. subject matter jurisdiction b. long-arm and minimum contacts jurisdiction c. federal question jurisdiction d. Utah would never have state jurisdiction over SeaCoast
b. long-arm and minimum contacts jurisdiction
One party wants to file a suit against another in state court. For a court to hear the case, a. both parties must consent to the lawsuit b. the court must have jurisdiction over the parties and the subject matter c. the parties must have diversity of citizenship and the claim must be more than $75,000 d. the parties must both own property within the state
b. the court must have jurisdiction over the parties and the subject matter
With respect to what society will tolerate, a company's compliance with the law, and no more, is a. the highest ethical level b. the moral minimum c. the only ethical level d. irrelevant
b. the moral minimum
Managers who set unrealistic production or sales goals increase the probability that employees will act: a. ethically b. unethically c. illegally d. not act at all
b. unethically
What is the exhaustion doctrine? a. The exhaustion doctrine is the standard by which a court will review a decision of an administrative agency b. A court will apply the exhaustion doctrine to determine if an administrative agency did all that it could to amicably resolve a dispute c. A person may seek judicial review of an agency decision only after they have followed all agency procedures to obtain a remedy for their complaint and have obtained a final order from the agency d. The exhaustion doctrine permits a person to seek judicial review of any unreasonable agency determination, whether or not it is final
c. A person may seek judicial review of an agency decision only after they have followed all agency procedures to obtain a remedy for their complaint and have obtained a final order from the agency
The Administrative Procedure Act (APA) is the federal law that does which of the following? a. The APA requires an economic impact statement for rules or regulations that impact small businesses b. The APA requires Congress to review agency rules and regulations before they become final c. The APA sets out the rule-making process for administrative agencies d. The APA requires that agencies conduct public hearings
c. The APA sets out the rule-making process for administrative agencies
Agency rules are similar to statutes because of which one of the following? a. They are enforced by law enforcement agencies b. Congress must vote in favor of them to become effective c. They are legal requirements and binding as if Congress has passed them d. They are opinions regarding laws passed by Congress
c. They are legal requirements and binding as if Congress has passed them
The 1803 decision of the United States Supreme Court in the case of Marbury v. Madison established a. the jurisdiction of the courts b. the concept of voir dire c. the power of judicial review d. the concept of venue
c. the power of judicial review
__________________________ is concerned with the most appropriate physical location for a trial. a. jurisdiction b. minimum contacts c. venue d. federal diversity
c. venue
__________________________ is concerned with the most appropriate physical location for a trial. a. jurisdiction b. minimum contacts c. venue d. federal university
c. venue
What is the role of an administrative law judge (ALJ)? a. An ALJ has no connection to the parties in the adjudication b. An ALJ is selected by mutual agreement of the agency and the business involved c. An ALJ has the final say on the decision in the case d. An ALJ is an employee of the agency bringing the charges
d. An ALJ is an employee of the agency bringing the charges
What are the benefits of the exhaustion doctrine? a. The exhaustion doctrine ensures federal courts have increases in cases b. The exhaustion doctrine allows for theoretical appeals c. The exhaustion doctrine provides a quick and easy path to the federal court system for appeals d. The exhaustion doctrine requires resolution of disputes within the agency without involving the court system, except when necessary
d. The exhaustion doctrine requires resolution of disputes within the agency without involving the court system, except when necessary
What is the term for a court's determination that an administrative agency decision is the result of plain error or mistake? a. mistake of fact b. clearly erroneous c. contrary to law d. abuse of discretion
d. abuse of discretion
The triple bottom line looks at all of the following except a. how decisions impact profits and revenue b. how decisions impact sustainability and the planet c. how decisions impact employees and consumers d. how decisions impact relations with foreign nations
d. how decisions impact relations with foreign nations
On a challenge to a provision in a state constitution, that conflicts with a provision in the U.S. Constitution: a. neither provision will be enforced b. both provisions will be enforced c. the state provision will be enforced only within the borders of that state d. the federal provision will be enforced
d. the federal provision will be enforced
A cost-benefit analysis is part of a. a duty-based ethics approach b. corporate social responsibility c. the principle of rights theory d. the utilitarian model
d. the utilitarian model
