BA325 Midterm #1
The Uniform Commercial Code facilitates commerce
Among states
Congress enacts the Ad Restriction Act (ARA) to limit advertising in certain circumstances. The ARA will be considered valid if it directly advances a substantial government interest
And goes no further than necessary to achieve its objective
A U.S. employer operating in a foreign country must abide by U.S. discrimination laws even if doing so violates the laws of that foreign country (T or F)
False
A precedent is any legal authority or source of law that a court may look to for guidance but need not follow when making its decision (T or F)
False
A statute is a secondary source of law (T or F)
False
Conduct that is legal is by definition ethical (T or F)
False
Congress does not pass laws based on ethics (T or F)
False
In a criminal case, the object is to obtain a remedy (T or F)
False
Substantive due process requires that a person have an opportunity to object to a proposed action before a fair, neutral decision maker. (T or F)
False
Mont Blanc S.A., a French firm, imports its goods into the United States and offers those goods for sale at "less than fair value." Fair value is the price of Mont Blanc's goods in
France
Jill and Kane, with their attorneys, meet to try to resolve a dispute. A neutral third party works with both sides and proposes a solution, but does not make a decision resolving the matter. This is
Mediation
Liz and Moss disagree over the amount due under their contract. To avoid involving any third party in the resolution of their dispute, Liz and Moss could resolve their dispute through
Negotiation
Under a state long-arm statute, a court can exercise jurisdiction over certain nonresident defendants (T or F)
True
Stare decisis is best defined as
a doctrine under which judges follow established precedents.
Trade barriers are
restrictions on imports
Cattle House Steaks, an Alabama company, enters into a contract over the phone with Beef Packing Inc., an out-of-state corporation. If a dispute arises, an Alabama court can exercise jurisdiction over Beef Packing
under the minimum contacts test
A cost-benefit analysis is most at home in
utilitarianism
Criminal statutes proscribe
wrongs committed against society for which society demands redress
Each court has a jurisdiction. Jurisdiction is best defined as
The geographic area in which a court has the power to apply the law
Nakeya and other foreign citizens allege environmental destruction committed overseas by the government of Cameroon on behalf of Global Mining Company, a U.S. firm. To seek redress for their injuries in a U.S. court, these citizens can
bring civil suits under the Alien Tort Statute
An ethical code of conduct is not
law
Corporate social responsibility refers to the government holding corporations responsible for their actions (T or F)
False
Doing business within a jurisdiction is not enough for most courts to compel a defendant to appear (T or F)
False
In a case involving Internet transactions, jurisdiction is proper only when the defendant conducts substantial business in the jurisdiction online (T or F)
False
A constitution is a primary source of law (T or F)
True
A law that limits a fundamental right may be held to violate substantive due process (T or F)
True
A question of law is generally the focus of an appellate court (T or F)
True
A question of law is generally the focus of an appellate court. (T or F)
True
The basis of a civil law system is a written code of laws (T or F)
True
The effectiveness of an industry code of ethics is partly determined by the commitment of the industry or company leadership to enforce it (T or F)
True
In international business, franchising involves
a license
State trial courts that are called county, district, superior, or circuit courts are most likely to have
general jurisdiction
Under the Outer Space Treaty, a moon, a planet, an asteroid, or any other celestial body is subject to the appropriation of
no single nation
D'Antoni files a suit in a federal district court against Enya. D'Antoni loses the suit, appeals to the U.S. Court of Appeals for the Ninth Circuit, and loses again. D'Antoni asks the United States Supreme Court to hear the case. The Court is
not required to hear the case
In a civil case, the object is to
obtain a remedy to compensate the injured party.
George burns a U.S. flag in his backyard. He films the activity and posts the video on YouTube.com. George's conduct is most likely
protected by the First Amendment
The government of Japan sets a limit on the amount of rice that can be imported from the United States. This is
quota
An export tax imposed by Congress would be unconstitutional (T or F)
True
Mining Company, a U.S. firm, owns property in Bolivia. The government of Bolivia seizes the property for an illegal purpose without paying just compensation. This is
confiscation
The triple bottom line looks at all of the following except
how decisions impact the relationship between the U.S. and other nations.
The United States taxes each barrel of imported oil at a flat rate. This is
a tariff
A court may rule contrary to a precedent if the court decides that the precedent
is incorrect or inapplicable
With respect to what society will tolerate, a company's compliance with the law, and no more, is
the lowest ethical level
Hale, research manager for Investor Fund, Inc., adheres to utilitarian ethics in making business and ethical decisions that involve the actions of the firm. According to this standard, an action is morally correct when it produces the greatest good for
the most people
A judicial decision on the constitutionality of an executive order that limits certain state actions is
the power of judicial review
Retail Operations, Inc., a U.S. firm, obtains a judgment in a U.S. court against Shinobu, Ltd., a Japanese business. Whether the court's judgment will be enforced by a court in Japan depends on the Japanese court's application of
the principle of comity
On a challenge to a provision in a state constitution that conflicts with a provision in the U.S. Constitution
the state provision will not be enforced
Finance Corporation, a U.S. firm, files a suit against Ghana in a U.S. court. Under the Foreign Sovereign Immunities Act, Ghana is immune from the jurisdiction of the court if Ghana has
- engaged in commercial activity outside the United States that has a direct effect in the United States. - engaged in commercial activity within the United States. - none of the choices - committed a tort in the United States.
Even if it conflicts with the U.S. Constitution, a state constitution is supreme within that states' borders (T or F)
False
Even if it conflicts with the U.S. Constitution, a state constitution is supreme within that states' borders. (T or F)
False
For purposes of diversity jurisdiction, a corporation is not considered a citizen of any particular state (T or F)
False
In a case involving Internet transactions, jurisdiction is proper only when the defendant conducts substantial business in the jurisdiction online. (T or F)
False
Judging a job applicant based on what an online search reveals about the applicant's activities outside the workplace is universally viewed as ethical (T or F)
False
Most states encourage or require parties to undertake a trial before alternative dispute resolution. (T or F)
False
Privacy rights receive no protection under federal law. (T or F)
False
Rationalization is the process of making a logical decision based on evidence and an analysis of the ethical dimensions of the decision (T or F)
False
Substantive due process requires that a person have an opportunity to object to a proposed action before a fair, neutral decision maker (T or F)
False
The simplest form of alternative dispute resolution is mediation (T or F)
False
When a wholly owned subsidiary is established in a foreign country, the parent company, which remains in the United States, gives up ownership, authority, and control over all phases of the operation in the foreign country (T or F)
False
Congress enacted the Sarbanes-Oxley Act in the wake of the Enron scandal (T or F)
True
Corporate "citizenship" involves making decisions beyond just maximizing profits and dividends (T or F)
True
Corporations enjoy many of the same constitutional rights and privileges as natural persons do (T or F)
True
Countries restrict exports to protect national security, further foreign policy objectives, and conserve resources (T or F)
True
Courts often refer to secondary sources of law for guidance in interpreting and applying a primary source of law (T or F)
True
Duty-based ethics may be based on religious principles or philosophical reasoning (T or F)
True
If an administrative agency fails to follow the rulemaking procedures imposed by the Administrative Procedure Act, the resulting rule may not be binding (T or F)
True
In an action by a domestic business to attach a foreign nation's property, the plaintiff must prove that the defendant is not entitled to sovereign immunity (T or F)
True
It can be difficult to predict with certainty how a court will apply a given law to a particular action (T or F)
True
Laws would have no discernible meaning without the courts to interpret and apply them (T or F)
True
One of the most important ways to maintain an ethical workplace is for management to set standards and expectations for ethical behavior (T or F)
True
One of the most important ways to maintain an ethical workplace is for management to set standards and expectations for ethical behavior. (T or F)
True
Outcome-based ethics determines what is ethical by looking at the potential benefits and harms of a given action (T or F)
True
Sovereign nations agree to be governed by international law to facilitate trade, commerce, and civilized discourse. (T or F)
True
The United States Supreme Court has held that a constitutional right to privacy is implied by several of the amendments in the Bill of Rights (T or F)
True
The effectiveness of an industry code of ethics is partly determined by the commitment of the industry or company leadership to enforce it. (T or F)
True
The parties to an international contract can indicate what court, jurisdiction, or tribunal will decide any disputes arising under the contract. (T or F)
True
When a foreign government acts as a "private party" in the market, its actions qualify as commercial activity for purposes of the Foreign Sovereign Immunities Act (T or F)
True
When concurrent jurisdiction exists, the decision of whether to litigate in a federal or state court can be affected by the availability of different remedies (T or F)
True
Rehab Care Company is charged with violating a rule of the Social Security Administration. Most likely, Rehab will be required to appear at a hearing presided over by
an administrative law judge
Questions of what is ethical involve the extent to which a company has
an ethical duty beyond those duties mandated by law
Wei Ltd., a Chinese firm, imports its goods into the United States and offers those goods for sale at "less than fair value." This is
dumping
Hal, a resident of Illinois, owns a warehouse in Indiana. A dispute arises over the ownership of the warehouse with Jack, a resident of Kentucky. Jack files a suit against Hal in Indiana. Regarding this suit, Indiana has
in rem jurisdiction
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
judicial review
A constitution sets forth a government's
limits and powers
Cody makes a business decision based on financial outcomes first, and then attempts to argue that it is ethical as well when it may not be. Cody is
rationalizing his decision
Tyler, a citizen of Utah, files a suit in a Utah state court against SeaCoast Sales Corporation, a Washington state company that does business in Utah. The court has original jurisdiction, which means that
the case is being heard for the first time
The National Restaurant Association announces a new industry code of ethics. The effectiveness of this code will be determined by
the commitment of management to enforcing the code
One party wants to file a suit against another. For a court to hear the case
the court must have jurisdiction
