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1. Question: Lawrence Kohlberg's studies of moral development suggest that many adults never reach moral maturity.

2. Question: Values refer to an individual's ranking of the worth, excellence, utility and desirability of life's many dimensions.

3. Question: Kant's categorical imperative is the notion that every person should act only on those principles that he or she, as a rational person, would prescribe as universal laws.

4. Question: In many nations, bribes to public officials are a routine ingredient in doing business.

5. Question: The Foreign Corrupt Practices Act:
  Your Answer:
forbids bribes to obtain business.

forbids "slush funds" to facilitate bribes.

holds individual managers accountable for bribery.

All of the above.

6. Question: An existentialist believes:
  Your Answer:
in absolute adhrerence to the letter of the law.

in maximizing Christian love.

no actions are inherently right or wrong, and conduct cannot be rationally justified.     CORRECT

none of the above.

7. Question: Concerns exist over the impacts of business on society, because:
  Your Answer:
half of the world's 100 largest economies are corporations.

many of America's historically strong corporate giants are struggling to retain their strength.

corporate managers generally except some notion of corporate social responsibility.

all of the above.

none of the above.

8. Question: Identify three provisions of the 2002 Sarbannes-Oxley Act that are designed to address corporate crime.
  Your Answer: 1. Publicly traded companies must have a code of ethics and use it. 2. Section 406 states that senior officials must adopt the code of ethics or explain why they did not do so. 3. Section 406 also defines these code of ethics that must be enforced. (ie. Do not promote illegal/wrong behavior, prompt reporting of violations, and compliance with applicable laws)


1. Question: Commercial speech is not protected by the United States Constitution.
  Your Answer:
True

False

2. Question: The People's Republic of China decided to create a legal system in recent years, in good part because such a system was considered necessary to commercial growth.
  Your Answer:
True

False

3. Question: The United States Supreme Court may only hear case on appeal from a circuit court of appeals.
  Your Answer:
True

False

4. Question: According to the surveys cited by the text, the majority of Americans feel that the United States criminal justice system treats people equally.
  Your Answer:
True

False

5. Question: Which are the following is false about the doctrine of stare decisis?
  Your Answer:
It makes the laws more equitable.

It allows the court to make a faster decision.

It makes it difficult to predict the results in a given case.

It makes the law more uniform.

6. Question: Arbitration is a process:
  Your Answer:
which is usually extremely time-consuming and expensive.

in which the disagreeing parties devise a solution.

in which a neutral third person makes the decision.

which was recently made illegal by federal law.

7. Question: Burg Allure is watching the jury nervously, hoping his attorney can convince them he was merely sleepwalking and did not intend to take the jewelry from the motel room. He doesn't think the state should have brought the case in the first place, since the rings turned out to be cubic zirconium instead of diamonds. This is:
  Your Answer:
a civil trial court proceeding.

a criminal trial court proceeding.
an appellate court proceeding.

one can't tell from the facts given.

8. Question: Evaluate the following argument: "what severe critics of the United States court system overlook is that for every case, which goes to trial, they're probably 30 or 50 cases and potential cases, which are settled by negotiation "just because the law is there" and because the stare decisis system allows competent lawyers to predict how a case would turn out, if it were tried. This means that nearly all conflicts in society, which might be litigated, are settled by negotiation: A tremendous accomplishment!" (Answer in two paragraphs of no more than 30 lines.)

1. Question: State law will sometimes dictate that contracts with minors are voidable by the minor.
  Your Answer:
True
False



2. Question: There is no way to making an irrevocable offer; an offeror can always revoke an offer before acceptance by the offeree.
  Your Answer:
True

False


3. Question: All contract disputes in the United States are governed by the Uniform Commercial Code (UCC).
  Your Answer:
True

False


4. Question: The absence of consideration can always be cured by arguing that the party who is not given consideration has nevertheless relied on the existence of the contract.
  Your Answer:
True
False



5. Question: A Statute of Frauds may require that a particular contract be in writing in order to be enforceable.
  Your Answer:
True

False



6. Question: The only contracts that are unenforceable due to illegality of those that require one of the parties to violate a state law.
  Your Answer:
True

False

7. Question: If Joe offers a $100 reward for anyone finding his lost dog, this is example of:
  Your Answer:
A bilateral contract.

A unilateral contract.

An unenforceable offer.

An implied contract.

8. Question: Contractual incapacity will be found:
  Your Answer:
Only if one of the parties has been adjudged by a court to be incompetent.

If one of the parties was intoxicated when asking for and receiving emergency services at the local hospital.

In every situation in which a minor attempts to make a contract.

None of the above is true.

9. Question: Unconscionable contracts:
  Your Answer:
are quite common, given the literacy problems in the United States.

are found whenever a party with less bargaining power makes a bad bargain.

are those that are still completely one-sided that fairness precludes enforcing them.

None of the above is a true statement.

10. Question: The parol evidence rule prohibits the introduction on oral understanding to alter written contract, unless:
  Your Answer:
one or more of the written terms are ambiguous.

necessary to prove mutual mistake.

to add a missing term.

All of the above are accurate statements.

1. Question: Lemon laws govern the sale of tainted fruits and vegetables.
  Your Answer:
True

False

2. Question: Employee testing has often been a primary vehicle in perpetuating discrimination.
  Your Answer:
True

False

3. Question: Assume a majority of the Asian applicants for secretarial jobs flunk the typing test because they learn typing with the different alphabet. Under the case of Griggs v. Duke Power Co., this is an illegal test.
  Your Answer:
True

False


4. Question: The Fair Labor Standards Act establishes a minimum-wage, overtime pay for any work in excess of 40 hours per week, and provisions dealing with child labor.
  Your Answer:
True

False

5. Question: Employers have historically been held liable for harm to third parties caused by the intentional or negligent acts of their employees.
  Your Answer:
True

False


6. Question: Workers compensation provides a form of no-fault injury and illness protection in the workplace
  Your Answer:
True

False

7. Question: The Constitution and most state constitutions provide a right to privacy, which protects virtually all American workers from employer monitoring in the absence of probable cause.
  Your Answer:
True

False

  Comments:
8. Question: Ordinarily, preemployment drug testing is lawful.
  Your Answer:
True
False

9. Question: The current adverse impact test must include which of the following ingredients?
  Your Answer:
an adverse impact on a protected class

a business justification for the questioned employment practice

an employment practice as a pretext for discrimination

All of the above.

only a and b

10. Question: The Equal Credit Opportunity Act forbids or limits credit inquiries as to:
  Your Answer:
marital status.

alimony.

receipt of public assistance.

all of the above.

only a and b.

1. Question: Continuity is not a problem for most partnerships, as when a partner leaves for any reason the rest of the partners can simply continue to operate without any further actions being necessary.
  Your Answer:
True

False


2. Question: One negative about an S corporation is that it pays double tax.
  Your Answer:
True

False


3. Question: The purchase of a share of stock makes that shareholder an owner of the company.
  Your Answer:
True

False

4. Question: A derivative suit is one brought by a shareholder on behalf of the corporation.
  Your Answer:
True

False

5. Question: In recent years, federal courts have upheld the "fraud on the market" theory that says if financial reports are faulty, even if they are not relied upon by an investor, those responsible for preparation of the reports may be liable.
  Your Answer:
True
False

6. Question: A director of a corporation does not have a duty to:
  Your Answer:
act diligently and in good faith and conducting corporate business.

always make the best business judgment.

avoid competition with the corporation.

disclose any potential conflict of interest.

7. Question: Limited partnerships:
  Your Answer:
are not taxable entities.

are easier to form than general partnerships.

encourage the limited partners to make management decisions.

make it difficult to transfer ownership of the shares.

8. Question: Explain illegal insider trading: its definition and the rationale behind the regulations.

1. Question: Price discrimination involves selling essentially identical goods during the same period of time to different purchasers at different prices.
  Your Answer:
True

False

2. Question: A tying arrangement will be prohibited solely on a showing that the party imposing the tie holds market power in the tying product.
  Your Answer:
True

False

3. Question: The Sherman Antitrust Act prohibits attempted monopolies as well as actual monopolies.
  Your Answer:
True

False

4. Question: The main goal of antitrust legislation is to preserve opportunities for small business people to compete effectively with the giants.
  Your Answer:
True

False

5. Question: The antitrust laws strive to achieve perfect competition.
  Your Answer:
True

False

6. Question: One of the reasons the Clayton Act was passed was to cover loopholes that had become apparent in the Sherman Antitrust Act.
  Your Answer:
True

False

7. Question: Patents, trademarks and copyrights are all government granted monopolies.
  Your Answer:
True

False

8. Question: Manufacturers who impose restrictions on where and to whom their products may be sold may be violating antitrust laws via:
  Your Answer:
resale price maintenance.

conscious parallelism.

tying arrangements.

customer and territorial restraints.

none of the above.

9. Question: Based on your text, which of the following has not been accused of illegal price-fixing in recent years?
  Your Answer:
international vitamin manufacturers

Archer Daniels Midland

Chrysler

Marsh and McLennan

10. Question: Antitrust enforcement action is the responsibility of the:
  Your Answer:
President.

Supreme Court.

the states.

Department of Justice.

SEC.

1. Question: In the United States, the federal government has been involved in environmental regulations since the 1800s.
  Your Answer:
True

False

2. Question: The floor of the Gulf of Mexico has an area approaching the size of Massachusetts, that is effectively dead due to pollution.
  Your Answer:
True

False

3. Question: Negligence is a "substantial and unreasonable invasion of the private use and enjoyment of one's land."
  Your Answer:
True

False

4. Question: Liability for hazardous waste may remain with the producer of the waste "to the grave" and beyond, even if the waste was disposed of properly and legally.
  Your Answer:
True

False

5. Question: Europe requires car manufacturers to take back used cars for recycling.
  Your Answer:
True

False

6. Question: Regarding environmental regulation issues, which is true?
  Your Answer:
Business is by far the major contributor to the environment pollution we face today in the U.S.

The government has recently been more willing to charge corporate officers with criminal violations of environmental laws.

The costs of pollution are usually borne by the polluter.

Is impossible to have economic growth while preserving the environment.

7. Question: The Clean Air Act of 1990:
  Your Answer:
gave the EPA power to set air quality standards for the first time.

places the cost of clean air solely on industry and prohibits a business from passing that cost on to consumers.

requires tougher auto emission standards and cleaner gasoline.

a and c only.

8. Question: Explain and illustrate the statement, "poverty is among the greatest environmental threats in the world."