Question 1

Managers can make their own "public" law.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following was the result in Sorrell v.IMS Health Inc.,the case in the text in which drug manufacturers challenged as unconstitutional a Vermont statute prohibiting pharmacies form selling prescriber-identifying information for marketing prescription drugs without the consent of prescribers?

Accepted Answer

A)  That although speech promoting marketing was not protected by the First Amendment, the law was unconstitutional based on the due process clause. 
B)  That the statute regulated commercial speech which was evaluated under an "intermediate" standard and that the law was, therefore, constitutional. 
C)  That the statute did not involve constitutional issues and was, therefore, a permissible type of regulation. 
D)  That the conduct prohibited by the law was protected by the First Amendment and that the law was unconstitutional. 
A)  That although speech promoting marketing was not protected by the First Amendment, the law was unconstitutional based on the due process clause. 
B)  That the statute regulated commercial speech which was evaluated under an "intermediate" standard and that the law was, therefore, constitutional. 
C)  That the statute did not involve constitutional issues and was, therefore, a permissible type of regulation. 
D)  That the conduct prohibited by the law was protected by the First Amendment and that the law was unconstitutional.

Question 3

Researchers have determined that Fortune 500 firms convicted of illegal conduct earned significantly lower returns on assets than firms that had not been convicted of wrongdoing.

Accepted Answer

A) True 
 B)False

Question 4

Worker protection is one major public policy concern underlying U.S.business law.

Accepted Answer

A) True 
 B)False

Question 5

Fact Pattern 1-1
Susan, the CEO of ABC Company, which was involved in the production and sale of hair care products, decided to hire new employees to develop new product lines for a planned expansion into the dog shampoo arena. She was concerned, however, that the employees specializing in canine products might leave at some point, taking company secrets with them for use in competition with ABC. She, therefore, required that the employees sign contracts containing covenants not to compete. Susan also consulted her in-house counsel, Sam, regarding the effect of some new regulations involving the use of certain chemicals in shampoo and conditioner. Sam told her, however, to ignore the regulations until some type of investigation of the company was started. Sam says that more than likely no one will ever check to see whether or not ABC is in compliance. Susan disagrees with his advice and decides to seek other counsel.
-Refer to fact pattern 1-1. Assuming that Susan seeks to be a legally astute manager,which of the following is true regarding the advice given by Sam to ignore the regulations pending an investigation?

Accepted Answer

A)  Sam is correct that it is unlikely that any investigation will ever occur and that the regulations may be safely ignored. 
B)  Sam is correct only if ABC has not had past investigations because if past investigations have occurred, it is more likely that the company will be the target of future investigations. 
C)  Sam is incorrect but only because safety regulations are concerned. 
D)  Sam is incorrect because a legally astute manager will take a proactive approach to regulations. 
A)  Sam is correct that it is unlikely that any investigation will ever occur and that the regulations may be safely ignored. 
B)  Sam is correct only if ABC has not had past investigations because if past investigations have occurred, it is more likely that the company will be the target of future investigations. 
C)  Sam is incorrect but only because safety regulations are concerned. 
D)  Sam is incorrect because a legally astute manager will take a proactive approach to regulations.

Question 6

Which of the following is a Chinese law applying to corporate political activities in China?

Accepted Answer

A)  The Election Act of China 
B)  The Criminal Law of China 
C)  The Lobbying Law of China 
D)  The Election Act of China and the Criminal Law of China, but not the Lobbying Law of China 
A)  The Election Act of China 
B)  The Criminal Law of China 
C)  The Lobbying Law of China 
D)  The Election Act of China and the Criminal Law of China, but not the Lobbying Law of China

Question 7

Fact Pattern 1-1
Susan, the CEO of ABC Company, which was involved in the production and sale of hair care products, decided to hire new employees to develop new product lines for a planned expansion into the dog shampoo arena. She was concerned, however, that the employees specializing in canine products might leave at some point, taking company secrets with them for use in competition with ABC. She, therefore, required that the employees sign contracts containing covenants not to compete. Susan also consulted her in-house counsel, Sam, regarding the effect of some new regulations involving the use of certain chemicals in shampoo and conditioner. Sam told her, however, to ignore the regulations until some type of investigation of the company was started. Sam says that more than likely no one will ever check to see whether or not ABC is in compliance. Susan disagrees with his advice and decides to seek other counsel.
-Refer to fact pattern 1-1. The covenants not to compete involved which of the following types of law?

Accepted Answer

A)  Public 
B)  Private 
C)  Circumscribed 
D)  Tangent 
A)  Public 
B)  Private 
C)  Circumscribed 
D)  Tangent

Question 8

Through which of the following can managers help shape the legal environment in which they do business?

Accepted Answer

A)  By lobbying legislators 
B)  By forming coalitions 
C)  By refusing to follow laws viewed as unneeded by company officials 
D)  By lobbying legislators and by forming coalitions, but not by refusing to follow laws viewed as unneeded by company officials 
A)  By lobbying legislators 
B)  By forming coalitions 
C)  By refusing to follow laws viewed as unneeded by company officials 
D)  By lobbying legislators and by forming coalitions, but not by refusing to follow laws viewed as unneeded by company officials

Question 9

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 10

Under the resource-based view of a business firm,a firm's resources can be a source of sustained competitive advantage if they are valuable,rare,and perfectly imitable by competitors.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is true regarding typical requirements placed on employers mandating the provision of employee benefits?

Accepted Answer

A)  Employers are typically required to provide workers' compensation, to pay unemployment insurance, and to pay social security and Medicare taxes. 
B)  Employers are typically required to pay unemployment insurance and to pay social security and Medicare taxes, but employers are not required to pay workers' compensation insurance. 
C)  Employers are typically required to pay workers' compensation insurance and to pay social security and Medicare taxes, but employers are not required to pay unemployment insurance. 
D)  Employers are typically required to provide workers' compensation and to pay unemployment insurance, but employers are not required to pay social security and Medicare taxes. 
A)  Employers are typically required to provide workers' compensation, to pay unemployment insurance, and to pay social security and Medicare taxes. 
B)  Employers are typically required to pay unemployment insurance and to pay social security and Medicare taxes, but employers are not required to pay workers' compensation insurance. 
C)  Employers are typically required to pay workers' compensation insurance and to pay social security and Medicare taxes, but employers are not required to pay unemployment insurance. 
D)  Employers are typically required to provide workers' compensation and to pay unemployment insurance, but employers are not required to pay social security and Medicare taxes.

Question 12

Which of the following is NOT a way in which U.S.law protects workers?

Accepted Answer

A)  Through regulating certain terms and conditions of employment 
B)  Through requiring the employer to provide certain benefits 
C)  Through protecting civil rights in the workplace 
D)  Through requiring the provision of educational opportunities to workers 
A)  Through regulating certain terms and conditions of employment 
B)  Through requiring the employer to provide certain benefits 
C)  Through protecting civil rights in the workplace 
D)  Through requiring the provision of educational opportunities to workers

Question 13

Molly,the CEO of a corporation owning a number of pet stores,calls you for advice. She tells you that she received inside information that the stock of the company was going to go down because of reports that a number of dogs sold by the store had become ill and that she,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 14

Fact Pattern 1-1
Susan, the CEO of ABC Company, which was involved in the production and sale of hair care products, decided to hire new employees to develop new product lines for a planned expansion into the dog shampoo arena. She was concerned, however, that the employees specializing in canine products might leave at some point, taking company secrets with them for use in competition with ABC. She, therefore, required that the employees sign contracts containing covenants not to compete. Susan also consulted her in-house counsel, Sam, regarding the effect of some new regulations involving the use of certain chemicals in shampoo and conditioner. Sam told her, however, to ignore the regulations until some type of investigation of the company was started. Sam says that more than likely no one will ever check to see whether or not ABC is in compliance. Susan disagrees with his advice and decides to seek other counsel.
-Refer to fact pattern 1-1. The use of covenants not to compete involves which of the following forces identified by Michael Porter and referenced in the text?

Accepted Answer

A)  Supplier power 
B)  Threat of entry 
C)  Substitution 
D)  Buyer power 
A)  Supplier power 
B)  Threat of entry 
C)  Substitution 
D)  Buyer power

Question 15

Laws enacted in response to corporate misdeeds often impose fewer restrictions and costs on business than would have been imposed had firms as a whole acted more responsibly at the outset.

Accepted Answer

A) True 
 B)False

Question 16

How does U.S.business law provide worker protection?

Accepted Answer

By regulating certain terms an

Question 17

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

Accepted Answer

By promoting effective adminis

Question 18

The Election Act of China gives businesspeople the right to be elected as congresspersons.

Accepted Answer

A) True 
 B)False

Managers can make their own "public" law.

Researchers have determined that Fortune 500 firms convicted of illegal conduct earned significantly lower returns on assets than firms that had not been convicted of wrongdoing.

Worker protection is one major public policy concern underlying U.S.business law.

Which of the following is a Chinese law applying to corporate political activities in China?

Through which of the following can managers help shape the legal environment in which they do business?

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.

Under the resource-based view of a business firm,a firm's resources can be a source of sustained competitive advantage if they are valuable,rare,and perfectly imitable by competitors.

Which of the following is true regarding typical requirements placed on employers mandating the provision of employee benefits?

Which of the following is NOT a way in which U.S.law protects workers?

Laws enacted in response to corporate misdeeds often impose fewer restrictions and costs on business than would have been imposed had firms as a whole acted more responsibly at the outset.

How does U.S.business law provide worker protection?

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

The Election Act of China gives businesspeople the right to be elected as congresspersons.

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

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

Exam 1: law, value creation, and risk management

Managers can make their own "public" law.

Researchers have determined that Fortune 500 firms convicted of illegal conduct earned significantly lower returns on assets than firms that had not been convicted of wrongdoing.

Worker protection is one major public policy concern underlying U.S.business law.

Which of the following is a Chinese law applying to corporate political activities in China?

Through which of the following can managers help shape the legal environment in which they do business?

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.

Under the resource-based view of a business firm,a firm's resources can be a source of sustained competitive advantage if they are valuable,rare,and perfectly imitable by competitors.

Which of the following is true regarding typical requirements placed on employers mandating the provision of employee benefits?

Which of the following is NOT a way in which U.S.law protects workers?

Laws enacted in response to corporate misdeeds often impose fewer restrictions and costs on business than would have been imposed had firms as a whole acted more responsibly at the outset.

How does U.S.business law provide worker protection?

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

The Election Act of China gives businesspeople the right to be elected as congresspersons.

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

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