Question 1

Which of the following is a way in which U.S.business law promotes consumer welfare?

Accepted Answer

A) By encouraging the sale of safe products at a fair price 
B) By preventing deceptive practices 
C) By refusing to recognize consumer privacy 
D) By encouraging the sale of safe products at a fair price and by preventing deceptive practices,but not by refusing to recognize consumer privacy 
A) By encouraging the sale of safe products at a fair price 
B) By preventing deceptive practices 
C) By refusing to recognize consumer privacy 
D) By encouraging the sale of safe products at a fair price and by preventing deceptive practices,but not by refusing to recognize consumer privacy

Question 2

Which of the following is a type of relationship building lobbying prevalent in China?

Accepted Answer

A) Xantu 
B) Olaying 
C) Guanxi 
D) Quinta 
A) Xantu 
B) Olaying 
C) Guanxi 
D) Quinta

Question 3

What was the court's ruling in the case of Image Technical Services v.Eastman Kodak Co.discussed in the text?

Accepted Answer

A) That Kodak's intellectual property rights in patented parts established a legitimate business justification for refusing to sell those specialized parts to an independent service organization only if service of Kodak machines constituted less than 75 of the business of any independent service organization. 
B) That Kodak's intellectual property rights in patented parts established a legitimate business justification for refusing to sell those specialized parts to an independent service organization only if service of Kodak machines constituted less than 50 of the business of any independent service organization. 
C) That Kodak's intellectual property rights in patented parts established a legitimate business justification for refusing to sell those specialized parts to an independent service organization only if service of Kodak machines constituted less than 25 of the business of any independent service organization . 
D) That Kodak's intellectual property rights in patented parts did not establish a legitimate business justification for refusing to sell those specialized parts to independent service organizations. 
A) That Kodak's intellectual property rights in patented parts established a legitimate business justification for refusing to sell those specialized parts to an independent service organization only if service of Kodak machines constituted less than 75 of the business of any independent service organization. 
B) That Kodak's intellectual property rights in patented parts established a legitimate business justification for refusing to sell those specialized parts to an independent service organization only if service of Kodak machines constituted less than 50 of the business of any independent service organization. 
C) That Kodak's intellectual property rights in patented parts established a legitimate business justification for refusing to sell those specialized parts to an independent service organization only if service of Kodak machines constituted less than 25 of the business of any independent service organization . 
D) That Kodak's intellectual property rights in patented parts did not establish a legitimate business justification for refusing to sell those specialized parts to independent service organizations.

Question 4

As used in the text,the term "legal astuteness" refers to the ability of a manager to avoid situations making consultation with legal counsel necessary.

Accepted Answer

A) True 
 B)False

Question 5

Discuss ways in which illegal conduct on behalf of executives of a business can put the business at a competitive disadvantage.

Accepted Answer

Illegal conduct can put a firm at a comp

Question 6

The ______ approach recognizes that "business decisions consist of continuous,interrelated economic and moral components" and that "the moral aspects of choice" are the "final component of strategy."

Accepted Answer

A) Procedural 
B) Systems 
C) Conciliatory 
D) Mandated 
A) Procedural 
B) Systems 
C) Conciliatory 
D) Mandated

Question 7

Private law provides the legal rules within which firms compete.

Accepted Answer

A) True 
 B)False

Question 8

A legally astute manager would wait as long as possible to consult legal counsel once a problem arises in order to keep legal fees to a minimum.

Accepted Answer

A) True 
 B)False

Question 9

What are the four ways referenced in the text by which U.S.law promotes public welfare?

Accepted Answer

By ensuring effective administ

Question 10

Which of the following is true regarding legally astute management teams practicing strategic compliance management?

Accepted Answer

A) The cost of complying with government regulation is viewed as an investment,not an expense. 
B) The cost of complying with government regulation is viewed as an expense which should be avoided until legal action is threatened. 
C) Only the minimum necessary to comply with any applicable law should be done. 
D) Both that the cost of complying with government regulation is viewed as an expense which should be avoided until legal action is threatened and that only the minimum necessary to comply with any applicable law should be done. 
A) The cost of complying with government regulation is viewed as an investment,not an expense. 
B) The cost of complying with government regulation is viewed as an expense which should be avoided until legal action is threatened. 
C) Only the minimum necessary to comply with any applicable law should be done. 
D) Both that the cost of complying with government regulation is viewed as an expense which should be avoided until legal action is threatened and that only the minimum necessary to comply with any applicable law should be done.

Question 11

Which of the following is true regarding laws and practices of the European Union and its members?

Accepted Answer

A) European antitrust regulators are often more sympathetic to competitors than are U.S.authorities. 
B) European antitrust regulators lack the authority to block mergers. 
C) European antitrust regulators have the authority to block only foreign mergers,not mergers of companies located within the European Union. 
D) It is expected that the impact of the European Union on corporate planning and strategy will become less,not more,evident in the future. 
A) European antitrust regulators are often more sympathetic to competitors than are U.S.authorities. 
B) European antitrust regulators lack the authority to block mergers. 
C) European antitrust regulators have the authority to block only foreign mergers,not mergers of companies located within the European Union. 
D) It is expected that the impact of the European Union on corporate planning and strategy will become less,not more,evident in the future.

Question 12

Which of the following is a theory that recognizes that firms have relationships with many constituent groups which both affect and are affected by the actions of the firm?

Accepted Answer

A) Stakeholder 
B) Stockholder 
C) Relational 
D) Cohesive 
A) Stakeholder 
B) Stockholder 
C) Relational 
D) Cohesive

Question 13

Fact pattern 1-1
Susan,the general manager of ABC Company begins to hear rumors that corporate taxes are being computed improperly,and perhaps illegally.She calls her in-house counsel,Bob,to ask his advice.Bob recently went to work for ABC Company just after he finished law school.Susan hired him without experience because she did not have to pay him as much as more experienced lawyers.Bob advised Susan that rumors rarely indicate any type of violation but a preliminary investigation should be done to determine if potential problems exist.He advised her that if an investigation indicates the existence of problems,she should keep the information quiet and not report it to her superiors or to the ethics program at the company since she does not want to stir up trouble for herself or Bob.Bob also tells Susan to trust him to make any internal investigation needed because such investigations are best made by in-house counsel.
-Refer to fact pattern 1-1.Which of the following is true regarding Bob's statement that any legal problems should be kept quiet and not disclosed to Susan's superior or the board of directors?

Accepted Answer

A) Bob is incorrect since if additional information seems to substantiate the rumors,even partially,Susan should report the information through appropriate channels. 
B) Bob is incorrect only if the information could potentially implicate Susan's superior. 
C) Bob is correct only if potential felony charges are involved. 
D) Bob is correct. 
A) Bob is incorrect since if additional information seems to substantiate the rumors,even partially,Susan should report the information through appropriate channels. 
B) Bob is incorrect only if the information could potentially implicate Susan's superior. 
C) Bob is correct only if potential felony charges are involved. 
D) Bob is correct.

Question 14

Promoting economic growth is one of the primary public policy objective of laws and regulations applicable to business.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is $\underline{not}$ a component of legal astuteness?

Accepted Answer

A) A set of value-laden attitudes about the importance of law to the firm's success 
B) A reactive approach to regulation 
C) The ability to exercise informed judgment when managing the legal aspects of business 
D) Context-specific knowledge of he law and the appropriate use of legal tools 
A) A set of value-laden attitudes about the importance of law to the firm's success 
B) A reactive approach to regulation 
C) The ability to exercise informed judgment when managing the legal aspects of business 
D) Context-specific knowledge of he law and the appropriate use of legal tools

Question 16

Managers are ethically prohibited from providing independent legal representation for employees when a company is confronted with a criminal investigation.

Accepted Answer

A) True 
 B)False

Question 17

Fact pattern 1-1
Susan,the general manager of ABC Company begins to hear rumors that corporate taxes are being computed improperly,and perhaps illegally.She calls her in-house counsel,Bob,to ask his advice.Bob recently went to work for ABC Company just after he finished law school.Susan hired him without experience because she did not have to pay him as much as more experienced lawyers.Bob advised Susan that rumors rarely indicate any type of violation but a preliminary investigation should be done to determine if potential problems exist.He advised her that if an investigation indicates the existence of problems,she should keep the information quiet and not report it to her superiors or to the ethics program at the company since she does not want to stir up trouble for herself or Bob.Bob also tells Susan to trust him to make any internal investigation needed because such investigations are best made by in-house counsel.
-Refer to fact pattern 1-1.Which of the following is true regarding Bob's statement that rumors rarely indicate any type of violation?

Accepted Answer

A) Bob is correct since research has shown that rumors indicate the presence of violations in only 10% of cases. 
B) Bob is correct since research has shown that rumors indicate the presence of violations in only 20% of cases. 
C) Bob is correct since research has shown that rumors indicate the presence of violations in only 5%of cases. 
D) Bob is incorrect. 
A) Bob is correct since research has shown that rumors indicate the presence of violations in only 10% of cases. 
B) Bob is correct since research has shown that rumors indicate the presence of violations in only 20% of cases. 
C) Bob is correct since research has shown that rumors indicate the presence of violations in only 5%of cases. 
D) Bob is incorrect.

Question 18

Molly,the CEO of a corporation owning a number of pet stores,calls you for advice.She tells you that she had inside information that the stock of the company was going to go down because of reports a number of dogs sold by the store had become ill and,therefore,immediately sold all her stock in the company before the information became public.She tells you that she has been advised that she is going to be charged with a securities violation involving insider trading.Which of the following is true regarding her situation?

Accepted Answer

A) Corporate executives may be fined but may not be sent to jail. 
B) Corporate executives may be sent to jail,but only for offenses endangering others. 
C) Corporate executives may be sent to jail,but only for fraud involving banks. 
D) Corporate executives may be sent to jail for violation of criminal laws. 
A) Corporate executives may be fined but may not be sent to jail. 
B) Corporate executives may be sent to jail,but only for offenses endangering others. 
C) Corporate executives may be sent to jail,but only for fraud involving banks. 
D) Corporate executives may be sent to jail for violation of criminal laws.

Question 19

Which of the following is listed in the text as a component of managing risk when assembling a team in business development?

Accepted Answer

A) Analyzing any covenants not to compete 
B) Purposefully refusing to address issues such as sexual harassment at such an early stage 
C) Informing employees regarding the e-mail communications are not discoverable 
D) Refusing to provide whistleblower protection 
A) Analyzing any covenants not to compete 
B) Purposefully refusing to address issues such as sexual harassment at such an early stage 
C) Informing employees regarding the e-mail communications are not discoverable 
D) Refusing to provide whistleblower protection

Question 20

Which of the following was created by food advertisers in an attempt to halt government regulation aimed at stopping marketing preying on children's vulnerability?

Accepted Answer

A) The Children's Advertising Review Unit 
B) The Minor's Board Unit 
C) The Minor Protection Review Unit 
D) The Children's Enhancement Board 
A) The Children's Advertising Review Unit 
B) The Minor's Board Unit 
C) The Minor Protection Review Unit 
D) The Children's Enhancement Board

Exam 1: law, value creation, and risk management

Which of the following is a way in which U.S.business law promotes consumer welfare?

Which of the following is a type of relationship building lobbying prevalent in China?

What was the court's ruling in the case of Image Technical Services v.Eastman Kodak Co.discussed in the text?

As used in the text,the term "legal astuteness" refers to the ability of a manager to avoid situations making consultation with legal counsel necessary.

Discuss ways in which illegal conduct on behalf of executives of a business can put the business at a competitive disadvantage.

The ______ approach recognizes that "business decisions consist of continuous,interrelated economic and moral components" and that "the moral aspects of choice" are the "final component of strategy."

Private law provides the legal rules within which firms compete.

A legally astute manager would wait as long as possible to consult legal counsel once a problem arises in order to keep legal fees to a minimum.

What are the four ways referenced in the text by which U.S.law promotes public welfare?

Which of the following is true regarding legally astute management teams practicing strategic compliance management?

Which of the following is true regarding laws and practices of the European Union and its members?

Which of the following is a theory that recognizes that firms have relationships with many constituent groups which both affect and are affected by the actions of the firm?

Promoting economic growth is one of the primary public policy objective of laws and regulations applicable to business.

Which of the following is not‾\underline{not}not​ a component of legal astuteness?

Managers are ethically prohibited from providing independent legal representation for employees when a company is confronted with a criminal investigation.

Which of the following is listed in the text as a component of managing risk when assembling a team in business development?

Which of the following was created by food advertisers in an attempt to halt government regulation aimed at stopping marketing preying on children's vulnerability?

Ethics ant the law

Courts, sources of law, and dispute resolution

Constitutional bases for business regulation

Agency

Administrative Law

Contracts

sales, licensing, and e-commerce

Torts and Privacy protection

product liability

Intellectual property

The employment agreement

civil rights and employment discrimination

executive compensation and employee benefits

Criminal law

Environmental law

Antitrust

Consumer Protection

real property and land use

Forms of business organizations

Directors, Officers, and Controlling Shareholders

Public and Private Offerings of Securities

Securities Fraud and insider trading

Debtor-Creditor Relations and Bankruptcy

International Business

Filters

Which of the following is $\underline{not}$ a component of legal astuteness?