LEG 100 BUSINESS LAW (LEG100) (LEG 100 BUSINESS LAW (LEG100)) Strayer University - LEG 100 Milestone 1 / LEG100 MILESTONE 1, all concepts correct, latest Fall 2020

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LEG 100 BUSINESS LAW (LEG100) (LEG 100 BUSINESS LAW (LEG100)) Strayer University - LEG 100 Milestone 1 / LEG100 MILESTONE 1, all concepts correct, latest Fall 2020 LEG 100 MILESTONE 1 1 A successful ... computer software corporation has decided to launch a charitable giving program that provides tuition grants to young women planning to study computer programming in college. By doing so, the corporation hopes to increase diversity in the field. How would a social contract theorist evaluate this decision? • The corporation is acting ethically because it is practicing the ideals of generosity and liberality. • The corporation is acting ethically because, since the company benefits from the stability and security that the nation provides, it has a duty to support principles that the nation values, such as diversity. • The corporation is acting unethically because the total good it will do by providing grants to women is cancelled out by the total harm it will do to men who cannot receive the grants. • The corporation is acting unethically because its primary duty is to its shareholders, and diverting funds to charitable giving will not increase profits. CONCEPT Major Ethical Perspectives 2 An energy corporation is worried about its exposure to criminal liability after a rival company is indicted for violating environmental laws. Select the strategy that would be least effective in reducing the company's criminal liability. • It could develop an anonymous internal reporting system for employees who suspect illegal or unauthorized behavior. • Its leadership could establish a culture of respect for legal compliance through example. • It could cooperate with authorities in their investigation of the rival company. • It could hold annual training seminars on the current state of environmental law, using the investigation as an example. CONCEPT Minimizing Corporate Criminal Liability 3 Which of the following accurately characterizes the function of the U.S. Circuit Courts? • The Circuit Courts are responsible for overseeing all of the federal court system. • The Circuit Courts are responsible for trying both criminal and civil cases. • The Circuit Courts are responsible for reviewing cases decided by the Supreme Court. • The Circuit Courts are responsible for hearing appeals sent to them by the District Court system. CONCEPT Federal Courts in the U.S. 4 After several quarters of negative earnings, the CEO of a social media corporation decides to end the company's policy of providing paid parental leave in order to reduce labor expenses, among other cost-saving measures. As a result of the CEO's decisions, the company's stock price rises significantly. According to Milton Friedman, did the corporation fulfill its duty? • Yes, because the CEO feels no personal obligation to support his or her employees' decisions to have children. • No, because employees are stakeholders who rely on the company for their well-being. • Yes, because the shareholders' return on investment has risen. • No, because paid parental leave is an important social good that companies have a responsibility to support. CONCEPT Corporate Governance 5 Select the true statement about the relationship between law, ethics, and business. • Ethical business practices and conduct are more important to the short-term success of a business than the long-term. • Ethical business practices and conduct have value only to the owners and managers of a business. • Ethical business practices and conduct generate goodwill that can be measured in the monetary value of a business. • Ethical business practices and conduct increase employee and customer satisfaction, but do not affect a business' bottom line. CONCEPT What Is Ethics? 6 In which scenario do the different court systems in the U.S. interact properly? • An Arizona resident drove through New Mexico to visit his college roommate and is hit by a delivery truck. When the New Mexico state court hears the case, the judge only takes Arizona law into consideration, since that's where the plaintiff resides. • When an employee in Colorado sues her employer for sexual harassment, the state court judge applies federal law relating to workplace harassment because it extends protections to employees beyond those provided by state law. • A federal judge refuses to hear a negligence case that includes a state-based claim in addition to a federal one. She cites the fact that federal courts can never have jurisdiction over cases that involve state laws. • When an employee tries to file a discrimination complaint against her employer in Maine after she loses in a Vermont state court, the Maine state court agrees to hear the case. CONCEPT The Courts and the Legal Process 7 Why do LLCs often have problems borrowing funds for business growth? • Because an LLC can only issue stock certificates to members of the company • Because the members of the LLC are not personally liable for the debts and loans received by the LLC • Because the partners and directors of the LLC do not share responsibility for the debts of the LLC • Because members of the LLC cannot legally authorize the business to create debt or to borrow money CONCEPT Limited Liability Entities 8 Select the example where the court has established personal jurisdiction over the defendant. • Oleg is being sued for failing to deliver goods sold to Abe. Oleg is a resident of Arizona, and Abe lives across the country in West Virginia. Abe has filed the lawsuit in West Virginia and a summons has been delivered to Oleg's home. • Lillian, Min, and Carmen were once friends, but Min is now suing Lillian and Carmen for defamation. Min and Carmen live in Michigan, but Lillian lives in Iowa. Lillian receives a summons to appear in court in Michigan, since that's where both Min and Carmen live. • Betsy receives a summons at her home in Utah, informing her that she is a defendant in a lawsuit filed in Nevada. She is being sued by Frank, a resident of Nevada, for unpaid medical bills stemming from when Betsy hit his car while driving through Nevada. • Fatima is being sued by her former landlord who claims that Fatima owes three months of unpaid rent. Both Fatima and her former landlord are residents of Minnesota, but the court has not yet been able to find Fatima to deliver her a summons, and she has no forwarding address or known location. CONCEPT Personal Jurisdiction 9 Arbitration is a __________ form of alternative dispute resolution. • voluntary, binding • sometimes involuntary, non-binding • voluntary, non-binding • sometimes involuntary, binding CONCEPT Alternative Dispute Resolution 10 Which of the following laws or agencies protects the public from various forms of investment fraud? • Civil Rights Act • Federal Trade Commission • Truth in Lending Act • Securities and Exchange Commission CONCEPT Law in Business 11 Alongside the states, the federal government increasingly governs which area of law? • Environmental law • Property law • Contract law • Domestic matters CONCEPT U.S. Positive Law 12 A whistleblower informs a VP at an online retail company about the widespread practice of warehouse workers being asked to work extra hours without pay. The VP raises the issue with the CEO, who responds that the company can’t compete in the industry without its workers putting in some extra hours, and that paying them for these hours would negatively affect earnings. The CEO assures the VP that the company’s workforce is happy to work these extra hours, since no warehouse workers have complained directly to him. Consider what you have learned about the factors that impact corporate culture. What is the ethical strength of the corporation in the example? • Strong, because the CEO is protecting the financial strength of the company. • Weak, because the CEO is failing to provide top-down ethical leadership. • Strong, because the CEO is willing to meet with people in the organization who have ethical concerns. • Weak, because the CEO is taking credit for the work of others. CONCEPT Corporate Culture and Codes of Ethics 13 Which of the following is a belief held by the theory of natural law? • There is no higher law than human-made law. • Laws must be enforced even if they are considered "bad." • There are rights that are intrinsic to humankind. • Humans require laws issued by sovereigns to distinguish right from wrong. CONCEPT What Is Law? 14 A 33-year-old business owner is put on trial for negligence. When in his trial process does voir dire occur? • After a witness has given testimony, as part of the cross-examination • After the closing arguments • In the appeals stage • At the beginning, as part of jury selection CONCEPT The Trial 15 If a breach of contract case is filed in federal court, the court __________. • has subject matter jurisdiction if the claim is for more than $75,000 and no plaintiff lives in the same state as any defendant • has subject matter jurisdiction if the claim is for less than $75,000 and no plaintiff lives in the same state as any defendant • has no subject matter jurisdiction and cannot hear the case • has no subject matter jurisdiction, but can hear the case at its own discretion CONCEPT Subject Matter Jurisdiction 16 Which of the following is true of corporations and their shareholders? • A corporation can have as many shares as it wishes to sell. • State law determines how many shares a corporation can have. • A corporation cannot have a single shareholder. • The number of shareholders is limited to the number of corporate officers. CONCEPT Corporations 17 Select the true statement about administrative law. • Administrative law can be vetoed by the President, which represents a "check" on the legislative branch. • Administrative agencies create enabling legislation, which makes up the body of administrative law. • It is produced by private individuals working at the request of the government to manage a social or business activity. • The authority for administrative law at the federal level comes from Congress. CONCEPT Legislation and Other Sources of Law 18 The CEO of Oil Company X is dismayed to learn that oil has been leaking from one of its off-shore rigs into the Gulf of Mexico for the last five years. In deciding how to proceed, the company identifies a range of stakeholders, considers how different courses of action would impact each stakeholder, and determines which core values each decision would satisfy. According to the Josephson's core values model for ethical decision-making, what should Company X do next? • Weigh the financial cost of each possible course of action against the core values that it promotes. • Decide which stakeholders are most important and whose needs should be prioritized. • Choose the course of action that is most likely to promote the greatest number of core values. • Determine which course of action will be easiest to implement. CONCEPT An Ethical Decision Model 19 Select the true statement about primary sources of law in the U.S. • A contract between two parties is an example of private law. • Public law governs the citizenry, but not the lawmakers themselves. • Procedural laws govern the rights and obligations of people. • Substantive laws are necessary to determine how procedural laws will be enforced. CONCEPT Origins of Law 20 Which of the following is a consideration when choosing a form of business organization? • Whether the business organization will turn a profit • Whether it is a service business or a manufacturing business • The level of motivation among the founders for the business to succeed • The level of difficulty and cost associated with establishing the business entity CONCEPT Business Organizations 21 Which level of state court has the right to select which cases it wishes to hear? • Supreme court • Limited jurisdiction court • General jurisdiction court • Intermediate appellate court CONCEPT State Courts in the U.S. 22 Which statement accurately characterizes the constitutional relationship between the states and the federal government? • State laws must always be respected by the U.S. Congress. • The U.S. Constitution protects individual rights, whereas state constitutions do not. • The U.S. Constitution gives the federal government jurisdiction over any areas that state constitutions do not expressly reserve to themselves. • State laws cannot conflict with federal laws or with the U.S. Constitution. CONCEPT U.S. Constitution as a Source of Law 23 Which of the following is an example of a general partnership? • Jonathan and Craig's catering business is going through a rough patch wherein the debts exceed the income. Jonathan is worried because he is personally liable for the whole of the company's debts, but Craig is only liable for the initial $50,000 that he invested. • Ken and Paul start a graphic design business together. When Ken fails to deliver on a contract with a customer, Ken and Paul are held equally responsible when the customer sues for damages. • Stefanie's photography business has grown so quickly that she needs to invest in more equipment. She brings in a partner who provides the capital to purchase the new equipment, but who has no control over the day-to-day operations of the business. • Yvonne opens her first business selling sporting goods. She hires a marketing manager, an accountant, and several sales staff to help her manage the demand for her goods. When she files her annual taxes, she claims 100% of the profits of the business on her individual tax return. CONCEPT Sole Proprietorships and Partnerships [Show More]

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