Question 1

U.S.laws promote public welfare in a variety of ways.Which of the following would be one of those ways?

Accepted Answer

A)  Protecting fundamental rights 
B)  Preventing deceptive practices 
C)  Regulating terms and conditions of employment 
D)  Allocating risks 
A)  Protecting fundamental rights 
B)  Preventing deceptive practices 
C)  Regulating terms and conditions of employment 
D)  Allocating risks

Question 2

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 3

Assume that after paying a large fine,a company survives charges of illegal activity.In what ways does illegal conduct put a company at a competitive disadvantage?

Accepted Answer

Illegal conduct can put a firm at a comp

Question 4

In CASE 1.1 Sorrell v.IMS Health Inc.,drug manufacturers challenged as unconstitutional a Vermont statute prohibiting pharmacies from selling prescriber-identifying information for marketing prescription drugs without the consent of prescribers.What was the U.S.Supreme Court ruling in this matter?

Accepted Answer

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

Question 5

The potential for legal analysis to be ambiguous means that even the most skilled and experienced advisers and lawyers sometimes get it wrong.

Accepted Answer

A) True 
 B)False

Question 6

The __________ theory 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 7

Self-regulation within the advertising industry has been largely successful in making any bans on deceptive advertising unnecessary.

Accepted Answer

A) True 
 B)False

Question 8

Under the resource-based view of a firm,when can a firm's resources be a source of sustained competitive advantage?

Accepted Answer

When they are valuable,rare,an

Question 9

The cost to firms for acting responsibly is often significantly less than the greater restrictions and costs imposed on them as a response to misdeeds or acting irresponsibly.

Accepted Answer

A) True 
 B)False

Question 10

Legally astute management teams practicing strategic compliance management

Accepted Answer

A)  view the cost of complying with government regulation as an investment,not an expense. 
B)  view the cost of complying with government regulation as an expense that should be avoided until legal action is threatened. 
C)  do only the minimum necessary to comply with any applicable law. 
D)  view the cost of complying with government regulation as an expense that should be avoided until legal action is threatened,while only engaging in the minimum efforts necessary to comply with any applicable law. 
A)  view the cost of complying with government regulation as an investment,not an expense. 
B)  view the cost of complying with government regulation as an expense that should be avoided until legal action is threatened. 
C)  do only the minimum necessary to comply with any applicable law. 
D)  view the cost of complying with government regulation as an expense that should be avoided until legal action is threatened,while only engaging in the minimum efforts necessary to comply with any applicable law.

Question 11

Contracts allow managers to make their own "public" law.

Accepted Answer

A) True 
 B)False

Question 12

Merle,the CEO of a corporation owning a number of pet stores,calls you for advice.Merle shares inside information that the stock of the company is going to go down because of reports that a number of dogs sold by the store had become ill and that Merle,therefore,immediately sold all personal stock in the company before the information became public.Then Merle tells you that counsel has warned of pending charges of securities violation involving Merle's insider trading.Which of the following is true regarding Merle's 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 13

Worker protection has not been a major public policy concern underlying U.S.business law.

Accepted Answer

A) True 
 B)False

Question 14

In which of the following ways does U.S.law protect workers?

Accepted Answer

A)  Facilitate innovative products and services 
B)  Prevent deceptive practices 
C)  Collect taxes and spend money 
D)  Require employers to provide certain benefits 
A)  Facilitate innovative products and services 
B)  Prevent deceptive practices 
C)  Collect taxes and spend money 
D)  Require employers to provide certain benefits

Question 15

J.P.Morgan Chase's "Sons and Daughters" hiring program,involving hiring children of China's ruling elite,was approved by the U.S.Department of Justice and the Securities Exchange Commission.

Accepted Answer

A) True 
 B)False

Question 16

The __________ was enacted after widespread abuses in the subprime mortgage market.

Accepted Answer

A)  Walsh-Healy Mortgage Reformation and Consumer Protection Act of 2009 
B)  Mortgage Lending and Financial Reform Act of 2009 
C)  Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 
D)  Financial Institution Regulatory Pronouncement and Consumer Revision Act of 2010 
A)  Walsh-Healy Mortgage Reformation and Consumer Protection Act of 2009 
B)  Mortgage Lending and Financial Reform Act of 2009 
C)  Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 
D)  Financial Institution Regulatory Pronouncement and Consumer Revision Act of 2010

Question 17

Which of the following has the responsibility for deciding which allocation of resources and rewards in a business makes the most business sense?

Accepted Answer

A)  The general manager 
B)  The in-house lawyer 
C)  An independently retained lawyer 
D)  An independently retained law firm,not just one lawyer 
A)  The general manager 
B)  The in-house lawyer 
C)  An independently retained lawyer 
D)  An independently retained law firm,not just one lawyer

Question 18

Private property rights provide one area in which laws and regulations can promote economic growth.

Accepted Answer

A) True 
 B)False

Question 19

Each activity in the value chain has legal aspects.

Accepted Answer

A) True 
 B)False

Question 20

Lobbying activities look different in the European Union from the way they look in the United States.Which of the following represents the advice of lobbyists for U.S.interests in the European Union?

Accepted Answer

A)  Refrain from presenting your position to commission members individually; the presentation must be to the full commission to be considered. 
B)  The most effective lobbying follows the relevant EU commission's preliminary draft opinion. 
C)  Refrain from any lobbying activity until a full presentation can be made to regulators. 
D)  Present your position to regulators ahead of any political debate on the issue. 
A)  Refrain from presenting your position to commission members individually; the presentation must be to the full commission to be considered. 
B)  The most effective lobbying follows the relevant EU commission's preliminary draft opinion. 
C)  Refrain from any lobbying activity until a full presentation can be made to regulators. 
D)  Present your position to regulators ahead of any political debate on the issue.

Exam 1: Law-Value-Creation-And-Risk-Management

U.S.laws promote public welfare in a variety of ways.Which of the following would be one of those ways?

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.

Assume that after paying a large fine,a company survives charges of illegal activity.In what ways does illegal conduct put a company at a competitive disadvantage?

In CASE 1.1 Sorrell v.IMS Health Inc.,drug manufacturers challenged as unconstitutional a Vermont statute prohibiting pharmacies from selling prescriber-identifying information for marketing prescription drugs without the consent of prescribers.What was the U.S.Supreme Court ruling in this matter?

The potential for legal analysis to be ambiguous means that even the most skilled and experienced advisers and lawyers sometimes get it wrong.

The __________ theory recognizes that firms have relationships with many constituent groups which both affect and are affected by the actions of the firm.

Self-regulation within the advertising industry has been largely successful in making any bans on deceptive advertising unnecessary.

Under the resource-based view of a firm,when can a firm's resources be a source of sustained competitive advantage?

The cost to firms for acting responsibly is often significantly less than the greater restrictions and costs imposed on them as a response to misdeeds or acting irresponsibly.

Legally astute management teams practicing strategic compliance management

Contracts allow managers to make their own "public" law.

Worker protection has not been a major public policy concern underlying U.S.business law.

In which of the following ways does U.S.law protect workers?

J.P.Morgan Chase's "Sons and Daughters" hiring program,involving hiring children of China's ruling elite,was approved by the U.S.Department of Justice and the Securities Exchange Commission.

The __________ was enacted after widespread abuses in the subprime mortgage market.

Which of the following has the responsibility for deciding which allocation of resources and rewards in a business makes the most business sense?

Private property rights provide one area in which laws and regulations can promote economic growth.

Each activity in the value chain has legal aspects.

Lobbying activities look different in the European Union from the way they look in the United States.Which of the following represents the advice of lobbyists for U.S.interests in the European Union?

Ethics-And-Law

Sources of Law Courts 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-And-Sustainability

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 Law And Transactions

Filters