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Legal, Ethical, and Social Aspects of Business:     Test 2
General Test Questions & Answers

Chapter    01    02    03    04    05   06    07    08    09    10    11    12    13   14   15   16   17   18     |      Final Exam 01  02


Most laws that restrict the content of speech are analyzed under intermediate scrutiny.
False
 
Speech that is offensive to many members of the society, but is not obscene or violent, has been held to be
"unprotected" by the U.S. Supreme Court.

False
 
Laws that take away a fundamental right are analyzed using rational basis review.
False
 
The powers granted under the Commerce Clause of the Constitution provide the basis upon which Congress
passed civil rights legislation.

True
 
Reserved powers are given to the ________ by the Constitution
state government
 
Which of the following is a form of unprotected speech?
defamatory language
 
When a court (acting through the judge or jury) must determine the facts of the case, decide which law or set of
laws is pertinent to the case, and apply those laws to resolve the dispute

Trial court
 
A court that deals solely with appeals relating to the interpretation of law
Appellate court
 
A method of outside resolution of labor and management differences in which the third party'd role is to suggest or
propose a solution to the problem

Mediation
 
Utilitarianism favours the greatest good for the greatest number of people under a given set of constraints.
True
 
Sustainability may be defined as the development that meets humanity's needs at the cost of the future generations
False
 
MNCs have a very low chance of exporting "best practices" in corporate responsibilities to local firms in developing nations.
False
 
Governments and corporations are increasingly collaborating to provide assistance to communities around the
world through global partnerships.

True
 
Governments and corporations are increasingly collaborating to provide assistance to communities around
the world through global partnerships.

True
 
According to the text, all the following companies have been criticized for actions portraying lack of social
responsibility in developing countries except:

Hewlett-Packard
 
Which of the following is likely to present an opportunity for MNCs to make a positive impact in developing countries?
Adoption and exportation of best practices
 
"Crony capitalism" describes business practices in countries with:
Weak, concentrated corporate governance
 
The following regions are most associated with "crony capitalism" except:
Europe
 
All of the following statements about ethics are true except:
It is not related to the area of corporate social
 
Which of the following views the individual as part of rather than separate from nature?
Eastern philosophy
 
Which of the following is false about the adage, "When in Rome, do as the Romans do?"
It is derived from the idea of cultural materialism
 
Which of the following statements is not true with regard to child labour?
Child labour continues to climb
 
All of the following are accurate in regard to the issue of sexual harassment in the Japanese workplace except:
Sexual harassment remains a minor social issue in Japan, despite a heightened sensitivity in recent years
Traditionally many male managers regard female employees as secretaries and, feel that women employees will soon
marry and leave the firm.

Sexual harassment is a new concept to many Japanese managers.
Japanese women face a glass ceiling
 
According to the latest corruption index of countries around the world specified in the text, the least corrupt country is:
New Zealand
 
Settlement of a labor/management dispute by a third party whose solution is legally binding and enforceable
Arbitration
 
A situation in which both parties agree to present a summarized version of their case to an independent third party;
the third party advises them of his or her impression of the probable outcome if the case were to be tried

Mini-trial
 
Similar to arbitration in that an independent third party resolves the case after hearing both sides of the story
Private court system
 
Which of the following statements is true of the Commerce Clause as it pertains to foreign commerce?
Regulation of foreign commerce is left to the federal government.
 
The right to privacy is explicitly guaranteed in the U.S. Constitution.
False
 
Which of the following is enacted under state police power?
personal property laws
 
What amendment to the Constitution prohibits state governments from denying their citizens equal protection under the law?
The fourteenth amendment
 
The federal regulatory unit that most influences business activities related to questionable practices that create disputes
between businesses and their customers

Federal Trade Commission (FTC)
 
Set of statutory laws covering several business law topics
Uniform Commercial Code (UCC)
 
Stipulates the specific terms the seller will honor
Express warranty
 
Imposed on the producer or seller by law, although it may not be a written document provided at the time of sale
Implied warranty
 
Santo belongs to the Eliok tribe in an Indian reservation in southern Nevada. He wants to open a casino in the reservation.
However, the state authority denies the tribe permission to open a casino in its own territory. Which of the following permits
the tribe to bring suit in federal court and force the state to comply?

The Federal Indian Gaming Regulatory Act
 
Executive orders are directives enacted by Congress to require the Executive branch to take some action.
False
 
When the states ratified the Constitution, they delegated certain powers-called enumerated powers-to the federal government.
True
 
Conducting activities in a way that allows for the long-term well-being of the natural environment, including all biological
entities; involves the assessment and improvement of business strategies, economic sectors, work practices,
technologies, and lifestyles so that they maintain the health of the natural environment

Sustainability
 
The rules and regulation that govern the conduct of business
Business law
 
A private or civil wrong other than breach of contract
Tort
 
A purposefully unlawful act to decieve or manipulate in order to damage other
Fraud
 
Businesses' legal responsibility for any negligence in the design, production, sale, and consumption of products
Product liability
 
A mutual agreement between two or more parties that an be enforced in a court if one party chooses not to comply
with the terms of the contract

Contract
 
The failure or refusal of a party to a contract to live up to his or her promises
Breach of contract
 
A common business relationship created when one person acts on behalf of another and under that person's control
Agency
 
Where one individual or organization takes another to court using civil laws
Lawsuit
 
The legal power of a court, through a judge, to interpret and apply the law and make a binding decision in a particular case
Jurisdiction
 
Generally speaking, political speech by a corporation is _______________________.
afforded full protection under the Constitution
 
A business's obligation to maximize its positive impact and minimize its negative impact on society
Social responsibility
 
An identifiable problem, situation, or opportunity that requires a person to choose from among several actions that
may be evaluated as right or wrong, ethical or unethical

Ethical issuse
 
The Equal Protection Clause requires all persons the right to a trial by their peers.
False
 
The concept of federal law taking precedence over state or local law is called the preemption doctrine.
True
 
The one in an agency relationship who wishes to have a specific task accomplished
Principal
 
The one in an agency relationship who acts on behalf of the principal to accomplish the task
Agent
 
Consists of real estate and everything permanently attached to it
Real property
 
All other property that is not real property
Personal property
 
A group of students organizing a protest march would be an instance of ________ speech.
limited protected
 
The Equal Protection Clause of the Fourteenth Amendment provides that a state cannot promote one religion over other religions.
False
 
The ________ provides that federal law takes precedence over state or local law.
Preemption Doctrine
 
Refers to property, such as musical works, artwork, books, and computer software, that is generated by a person's creative activities
Intellectual property
 
Passed in 1890 to prevent businesses from restraining trade and monopolizing markets
Sherman Antitrust Act
 
Prohibits price discrimination, tying and exclusive agreements, and the acquisition of stock in another corporation where the
effect may be to substantially lessen competition or tend to create a monopoly

Clayton act
 
Questions arising under the Due Process Clause which involve race are typically subject to rational basis review.
False
 
Lila, a newspaper columnist from Chicago, is unhappy with the soaring price of fuel in the U.S. She publishes an article that
criticizes the government's refusal to offer gasoline at a subsidized price. This is an example of fully protected speech.

True
 
Payments, gifts, or special favor intended to influence the outcome of a decision
Bribes
 
The act of taking someone else's work and presenting it as your own without mentioning the source
Plagiarism
 
Formalized rules and standards that describe what a company expect of its employees
Code of ethics
 
The act of an employee exposing an employer's wrongdoing to outsiders, such as the media or government regulatory agencies
Whistleblowing
 
Kingsland is a country that has been exporting apples to the United States for over a century, shipping 300 tons to Georgia
each month. However, last month, Kingsland violated a trading norm which was not condoned by Georgia.
Which of the following measures should be taken to regulate apple imports from Kingsland?

Georgia can appeal to the federal authority which can stop imports from Kingsland.
 
Which of the following statements is true of the Supremacy Clause of the U.S. Constitution?
Any state or local law that "directly and substantially" conflicts with valid federal law is preempted
 
The Due Process Clause of the U.S. Constitution grants Congress the power "to regulate commerce with foreign nations,
and among the several states, and with Indian tribes."

False
 
A police officer can never search a person's home without first obtaining a search warrant.
False
 
The Establishment Clause guarantees that there will be no state-sponsored or promoted religion.
True
 
Substantive due process requires that that the government give a person proper notice and hearing of legal action before that person is deprived
of his or her life, liberty, or property.
False
 
Jerome wears a t-shirt that bears a picture of the current U.S. president. Under this picture, there are words which imply that the President is doing a bad job of running the country. In accordance to the Freedom of Speech Clause, which of the following is valid?
Criticizing the current president is fully protected speech and Jerome cannot be prosecuted.
 
The extent to which businesses meet the legal, ethical, and voluntary responsibilities placed on them by their stakeholders
Corporate citizenship
 
The activities that independent individuals, groups, and organizations undertake to protect their rights as consumers
Consumerism



Chapter    01    02    03    04    05   06    07    08    09    10    11    12    13   14   15   16   17   18     |      Final Exam 01  02


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