MGT 306 (0001) - Spring 2012 - Exam I (with answers)
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MGT 306 (0001) - Spring 2012 - Exam I (with answers)

Course Number: MGT 306, Fall 2012

College/University: UMKC

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University of Missouri-Kansas City Bloch School of Business MGT 306 (Section 0001) Spring 2012 Semester Legal, Ethical & Regulatory Environment of Business Office Hours: Before or after class or by appointment Tuesday, Thursday Bloch School, Room 12 8:00 am to 9:15 am Roger L. Hiatt (Lecturer) Stinson Morrison Hecker LLP 1201 Walnut, Suite 2900 Kansas City, Missouri 64106-2150 Telephone: 816-691-3373...

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of University Missouri-Kansas City Bloch School of Business MGT 306 (Section 0001) Spring 2012 Semester Legal, Ethical & Regulatory Environment of Business Office Hours: Before or after class or by appointment Tuesday, Thursday Bloch School, Room 12 8:00 am to 9:15 am Roger L. Hiatt (Lecturer) Stinson Morrison Hecker LLP 1201 Walnut, Suite 2900 Kansas City, Missouri 64106-2150 Telephone: 816-691-3373 Preferred E-mail: rhiatt@stinson.com UMKC Email: hiattr@umkc.edu MGT 306, SPRING 2012, EXAM I True/False 1. Statutory law is a minor source of US law. Register to View Answer 2. Hall was arrested for burning the United States' flag in a protest of governmental policy. His action is protected under the First Amendments guarantee of free speech because the flag burning is considered symbolic speech. Register to View Answer 3. Jane, a resident of Minnesota, is suing Arthur, an accountant, from Wisconsin, claiming that because of his poor advice, she lost $ 60,000. Jane has the option to bring the case to federal court. Register to View Answer 4. Researchers who study happiness find that people expect material goods to make them happier than they actually do. Register to View Answer 5. Misleading commercial speech may be outlawed altogether without violating the Constitution. Register to View Answer 6. It is a violation of United States law for a U.S. company for a U.S. person to pay money to a foreign governmental official in order to obtain favorable commercial advantage from that foreign government. Register to View Answer 7. In order for a plaintiff to prevail in a suit for slander, the plaintiff generally must prove some injury. Register to View Answer Page 1 of 20 ADMIN01/900999.00295/12404462.6 University of Missouri-Kansas City Bloch School of Business MGT 306 (Section 0001) Spring 2012 Semester Legal, Ethical & Regulatory Environment of Business Office Hours: Before or after class or by appointment Tuesday, Thursday Bloch School, Room 12 8:00 am to 9:15 am Roger L. Hiatt (Lecturer) Stinson Morrison Hecker LLP 1201 Walnut, Suite 2900 Kansas City, Missouri 64106-2150 Telephone: 816-691-3373 Preferred E-mail: rhiatt@stinson.com UMKC Email: hiattr@umkc.edu EXAM I (Continued) 8. Robert was a witness in a lawsuit. When asked why he fired Eva, Robert replied, "she was fired for stealing money from my office." Indeed, Eva had not stolen any money. Eva will be able to successfully sue Robert for defamation based on what he said in court. ANS: 9. A salesclerk at Mannys Record Store observed a customer look at a classic heavy metal LP from the 1970s and discretely put it in her backpack. Mannys can detain the customer for suspicion of shoplifting without being held liable for false imprisonment. ANS: 10. T If Gloria threw a rock which hit Merle, she is liable for an intentional tort of battery only if she intended to injure or harm Merle. ANS: 11. F F The doctrine of stare decisis, though vital to the creation of the common law when this country was settled, is not important to our modern, complex society. Register to View Answer 12. A crime is a violation of statutory law. Register to View Answer 13. Unethical behavior can be costly. Register to View Answer 14. The Pines, a small motel in central Georgia, may be subject to federal regulation even though it is not close enough to the state borders to have many guests from other states. Register to View Answer 15. In order for the government to obtain a criminal conviction, it must prove its case beyond a reasonable doubt. Register to View Answer Page 2 of 20 ADMIN01/900999.00295/12404462.6 University of Missouri-Kansas City Bloch School of Business MGT 306 (Section 0001) Spring 2012 Semester Legal, Ethical & Regulatory Environment of Business Office Hours: Before or after class or by appointment Tuesday, Thursday Bloch School, Room 12 8:00 am to 9:15 am Roger L. Hiatt (Lecturer) Stinson Morrison Hecker LLP 1201 Walnut, Suite 2900 Kansas City, Missouri 64106-2150 Telephone: 816-691-3373 Preferred E-mail: rhiatt@stinson.com UMKC Email: hiattr@umkc.edu EXAM I (Continued) 16. Generally, mandatory arbitration provisions in a contract are valid. Register to View Answer 17. Sandra sued her employer, Cape Inc., claiming that she was sexually harassed on the job. This is a criminal lawsuit. Register to View Answer 18. While at the park, Tasha saw a small child fall into the lake. Tasha did not know the child. Under the common law of most states, Tasha has a legal duty to take reasonable steps to assist the child if Tasha is able to provide positive assistance and the assistance will not jeopardize Tasha's well being. Register to View Answer 19. The Fifth Amendment declares that a person cannot be tried twice for the same criminal offense. Register to View Answer 20. Congress has the sole responsibility for creating statutory law. Register to View Answer 21. The behavior of top executives regarding ethical issues has little effect on the behavior of the employees of the organization. Register to View Answer 22. The statement that whatever the government declares to be the law is the law, whether it is right or wrong, is an example of legal realism. Register to View Answer 23. Disputants Martin and Daulton have hired Thurman to mediate their disagreement. Although Martin and Daulton must accept whatever decision Thurman makes, the mediation has the advantage of keeping Martin and Daulton out of court. Register to View AnswerPage 3 of 20 ADMIN01/900999.00295/12404462.6 University of Missouri-Kansas City Bloch School of Business MGT 306 (Section 0001) Spring 2012 Semester Legal, Ethical & Regulatory Environment of Business Office Hours: Before or after class or by appointment Tuesday, Thursday Bloch School, Room 12 8:00 am to 9:15 am Roger L. Hiatt (Lecturer) Stinson Morrison Hecker LLP 1201 Walnut, Suite 2900 Kansas City, Missouri 64106-2150 Telephone: 816-691-3373 Preferred E-mail: rhiatt@stinson.com UMKC Email: hiattr@umkc.edu EXAM I (Continued) 24. If the President vetoes a bill and if both the House and Senate repass the bill by a twothirds margin, the bill becomes law. Register to View Answer 25. In a civil case, the plaintiff must prove the case beyond a reasonable doubt. Register to View Answer 26. A contract involving the sale of goods from a Texas seller to a French wholesaler is necessarily governed by the United Nations Convention on Contracts for the International Sale of Goods (CISG). Register to View Answer 27. Cromwell lives in a condominium complex. He will be spending a year overseas, and he would like to rent out his unit while he is away. The Homeowner Association informs him that, according to their bylaws, he does not have the right to lease his unit without prior approval by the Associations Board of Directors. The Association has made an unconstitutional restriction of the property rights of residents of the condominium complex. Register to View Answer 28. In 1994, the Arizona Supreme Court decided the case of Hernandez v. Arizona Board of Regents and found a duty of care to avoid furnishing alcohol to underage consumers. If in 2008 a Flagstaff, Arizona plaintiff brings a lawsuit against an Arizona universitys fraternity for providing alcohol to members under the legal drinking age, the Hernandez v. Arizona Board of Regents case will serve as precedent. Register to View Answer Page 4 of 20 ADMIN01/900999.00295/12404462.6 University of Missouri-Kansas City Bloch School of Business MGT 306 (Section 0001) Spring 2012 Semester Legal, Ethical & Regulatory Environment of Business Office Hours: Before or after class or by appointment Tuesday, Thursday Bloch School, Room 12 8:00 am to 9:15 am Roger L. Hiatt (Lecturer) Stinson Morrison Hecker LLP 1201 Walnut, Suite 2900 Kansas City, Missouri 64106-2150 Telephone: 816-691-3373 Preferred E-mail: rhiatt@stinson.com UMKC Email: hiattr@umkc.edu EXAM I (Continued) Multiple Choice 29. When the Supreme Court issues a writ of certiorari, that means that: a. b. c. d. the Court overrules the Court of Appeals decision. the Court states that it doesnt have jurisdiction over the case. the Court agrees to hear the case. the Courts decision is unanimous. Register to View Answer 30. A rule that establishes how a juror may be refused is a rule of: a. b. c. d. substantive law. administrative law. procedural law. common law. Register to View Answer 31. In Jones v. Clinton, the court held: a. b. c. d. Paula Jones did not demonstrate the essential elements for her claim of sexual harassment. Paula Jones was entitled to a summary judgment. public policy required that the case be dismissed because of the Presidents governmental position. President Clinton failed to comply with a discovery order. Register to View Answer Page 5 of 20 ADMIN01/900999.00295/12404462.6 University of Missouri-Kansas City Bloch School of Business MGT 306 (Section 0001) Spring 2012 Semester Legal, Ethical & Regulatory Environment of Business Office Hours: Before or after class or by appointment Tuesday, Thursday Bloch School, Room 12 8:00 am to 9:15 am Roger L. Hiatt (Lecturer) Stinson Morrison Hecker LLP 1201 Walnut, Suite 2900 Kansas City, Missouri 64106-2150 Telephone: 816-691-3373 Preferred E-mail: rhiatt@stinson.com UMKC Email: hiattr@umkc.edu EXAM I (Continued) 32. The Marcel Company is opening an office in Mexico. The cost to obtain electrical service is $500, but the clerk suggests that service could be started faster if an additional $50 is paid, which the clerk will keep. If the Marcel official pays the additional $50: a. b. c. d. he will have violated the Foreign Corrupt Practices Act. he will not have violated the Foreign Corrupt Practices Act because this would be considered a grease or facilitating payment, which is legal. he will be guilty of violating the Foreign Corrupt Practices Act only if the payment was illegal under the written law of Mexico. he will be guilty of violating both the Foreign Corrupt Practices Act and the Convention of Combatting Bribery of Foreign Public Officials in International Business Transactions. Register to View Answer 33. The U.S. Supreme Court was asked to decide whether discrimination based on sexual orientation is a violation of Title VII of the Civil Rights Act. This law forbids discrimination in employment on the basis of sex. In interpreting statutes, the court may use which of the following? a. b. c. d. The plain meaning rule. Legislative history. Public policy. All of the above. Register to View Answer 34. Hardhat Machine Company sold goods to Irish Eyes Company of Northern Ireland. Big Bank issued a letter of credit on behalf of Irish Eyes and the letter was given to Hardhat. The documents required by the letter of credit are presented to the bank for payment while the goods are still in transit. Is Hardhat entitled to be paid? a. b. c. d. No, payment is not due until the goods are delivered. No, payment is not due until 30 days after delivery. No, payment is not due until the buyer has had a reasonable time to inspect the goods. Yes, the letter of credit is a promise by the bank to pay when certain documents are presented. Register to View AnswerPage 6 of 20 ADMIN01/900999.00295/12404462.6 University of Missouri-Kansas City Bloch School of Business MGT 306 (Section 0001) Spring 2012 Semester Legal, Ethical & Regulatory Environment of Business Office Hours: Before or after class or by appointment Tuesday, Thursday Bloch School, Room 12 8:00 am to 9:15 am Roger L. Hiatt (Lecturer) Stinson Morrison Hecker LLP 1201 Walnut, Suite 2900 Kansas City, Missouri 64106-2150 Telephone: 816-691-3373 Preferred E-mail: rhiatt@stinson.com UMKC Email: hiattr@umkc.edu EXAM I (Continued) 35. Assume that in December 2009, the Environmental Protection Agency (EPA) filed an administrative complaint against Arlington Firearms Co. alleging that the company exceeded chromium emissions limits. The EPA proposed a $257,162 fine. Which statement is correct concerning the administrative agency adjudication? a. b. c. d. A jury decides the matter. The Federal Rules of Criminal Procedure govern the admissibility of evidence. The losing party has a right to appeal. The parties are not represented by attorneys. Register to View Answer 36. Which statement is correct concerning judicial review of an administrative agency's action? a. b. c. d. Courts usually accept the facts of the case as determined by the agency and often defer to the agency's interpretation of the law, if reasonable. Courts conduct a de novo review of the case. Courts ignore the facts of the case. Courts substitute their opinion for that of the agency. Register to View Answer 37. If there is a conflict between a state and federal law, generally the federal law will prevail because of the: a. b. c. d. Due Process Clause Equal Protection Clause. Supremacy Clause. federalism doctrine. Register to View Answer Page 7 of 20 ADMIN01/900999.00295/12404462.6 University of Missouri-Kansas City Bloch School of Business MGT 306 (Section 0001) Spring 2012 Semester Legal, Ethical & Regulatory Environment of Business Office Hours: Before or after class or by appointment Tuesday, Thursday Bloch School, Room 12 8:00 am to 9:15 am Roger L. Hiatt (Lecturer) Stinson Morrison Hecker LLP 1201 Walnut, Suite 2900 Kansas City, Missouri 64106-2150 Telephone: 816-691-3373 Preferred E-mail: rhiatt@stinson.com UMKC Email: hiattr@umkc.edu EXAM I (Continued) 38. Roxanne was injured when she fell in a hole while walking across her apartment landlord's parking lot. She and her lawyer are seeking compensation by suing the landlord. Which of the following statements is true? a. b. c. d. She is entitled to a jury trial. The case can be settled at any time. State courts will have jurisdiction. all of the above. Register to View Answer 39. The primary source of federal power to regulate business is the: a. b. c. d. Supremacy Clause. Commerce Clause. Fifth Amendment Privilege and Immunities Clause. Register to View Answer 40. The 14th Amendment's Equal Protection Clause "strict scrutiny" test will be used when the legislation: a. b. c. d. affects an economic interest. affects a person's right to drive. differentiates on the basis of race. affects a person's right to drink alcoholic beverages. Register to View Answer 41. If Oregon passed a statute that prohibited liquor stores from engaging in any kind of advertising, that statute would be: a. b. c. d. valid as an exercise of police power. valid, as alcohol is illegal for minors. invalid as a violation of the Commerce Clause. invalid as an unreasonable restriction of commercial free speech. Register to View Answer Page 8 of 20 ADMIN01/900999.00295/12404462.6 University of Missouri-Kansas City Bloch School of Business MGT 306 (Section 0001) Spring 2012 Semester Legal, Ethical & Regulatory Environment of Business Office Hours: Before or after class or by appointment Tuesday, Thursday Bloch School, Room 12 8:00 am to 9:15 am Roger L. Hiatt (Lecturer) Stinson Morrison Hecker LLP 1201 Walnut, Suite 2900 Kansas City, Missouri 64106-2150 Telephone: 816-691-3373 Preferred E-mail: rhiatt@stinson.com UMKC Email: hiattr@umkc.edu EXAM I (Continued) 42. Nortron Corporation wants to create an ethical environment in its company. Which of the following has been found to help foster a sense of ethics within an organization? a. b. c. d. The company may develop a formal, written ethics code. The company may institute a formal ethics training program for the employees. The top executives may provide good examples by behaving ethically themselves. All of the above alternatives have been used by U.S. companies to create an ethical environment in their organizations. Register to View Answer 43. Jeff sent letters to 1,000 people offering to send them information that would help them save money on health care, for the price of $49.99. If they sent her the money, the brief, generally known information he sent them was: Dont get sick. Jeff is guilty of: a. b. c. d. mail fraud. arson. embezzlement. nothing. He never forced anyone to send him the money. Register to View Answer 44. The Chief Executive Officer of Ticor, Inc. must decide about the disposal of toxic waste materials. Which of the following considerations should help the CEO reach an ethical business decision? a. b. c. d. Toxic waste disposal law. The harm the disposal could cause to the environment. The impact on the business if the decision is publicly disclosed through the news media. All of the above. Register to View Answer Page 9 of 20 ADMIN01/900999.00295/12404462.6 University of Missouri-Kansas City Bloch School of Business MGT 306 (Section 0001) Spring 2012 Semester Legal, Ethical & Regulatory Environment of Business Office Hours: Before or after class or by appointment Tuesday, Thursday Bloch School, Room 12 8:00 am to 9:15 am Roger L. Hiatt (Lecturer) Stinson Morrison Hecker LLP 1201 Walnut, Suite 2900 Kansas City, Missouri 64106-2150 Telephone: 816-691-3373 Preferred E-mail: rhiatt@stinson.com UMKC Email: hiattr@umkc.edu EXAM I (Continued) 45. Judicial review can best be described as the power of federal courts to: a. b. c. d. review state court decisions. review state executive action. review federal and state legislative and executive action. none of the above. Register to View Answer 46. A business will incur strict liability for damages resulting from: a. b. c. d. using harmful chemicals. operating explosives. bringing dangerous substances onto property. All of the above. Register to View Answer 47. The primary purpose of RICO was: a. b. c. d. to raise revenue. to be a tool against organized crime. to prosecute those engaged in tax fraud. all of the above Register to View Answer 48. Luke decided to play a practical joke on Laura, a co-worker. He called her pretending he was working for Northside Hospital. He told her that her husband was severely bitten by a raccoon. Laura was very worried and began to cry. When she asked if her husband could have been infected with rabies, Luke burst out laughing. She recognized his voice and didnt think it was funny. Can Laura sue Luke for the tort of intentional infliction of emotional distress? a. b. c. d. No, since he was only playing a practical joke. Yes, but only if Adam intended to cause Linda serious emotional distress. Yes, as his extreme and outrageous conduct was intentional. No, since Linda was not physically hurt by Adam. Register to View AnswerPage 10 of 20 ADMIN01/900999.00295/12404462.6 University of Missouri-Kansas City Bloch School of Business MGT (Section 306 0001) Spring 2012 Semester Legal, Ethical & Regulatory Environment of Business Office Hours: Before or after class or by appointment Tuesday, Thursday Bloch School, Room 12 8:00 am to 9:15 am Roger L. Hiatt (Lecturer) Stinson Morrison Hecker LLP 1201 Walnut, Suite 2900 Kansas City, Missouri 64106-2150 Telephone: 816-691-3373 Preferred E-mail: rhiatt@stinson.com UMKC Email: hiattr@umkc.edu EXAM I (Continued) 49. Runyon was ready to sign a two-year agreement with Barnett Corp. to become Barnetts sales representative for a three-state area. LaPrise, who wants to be the representative for that area, threatens Runyon with bodily harm if he takes the position. Runyon decides his physical well being is more important to him than the job, so he does not accept the position. LaPrise: a. b. c. d. committed tortuous interference with a contract. committed tortuous interference with a prospective advantage. committed a battery. caused a breach of contract and committed the tort of intrusion. Register to View Answer 50. Advantages of Alternative Dispute Resolution (ADR) include: a. b. c. d. ADR is faster than litigation. ADR keeps the parties talking rather than fighting. ADR is less expensive than litigation. All of the above are advantages of ADR. Register to View Answer 51. Becky, a three-year-old child, was seriously injured when she stuck her fingers into an electrical outlet. Her parents sued the restaurant where the incident occurred, claiming it should have had child protective guards on the outlets. Which of the following statements is true: a. b. c. d. the restaurant is liable based on the doctrine of strict liability. the restaurant is liable based on the doctrine of res ipsa loquitur. the restaurant is liable if the incident leading to injury was reasonably foreseeable. the restaurant is not liable as the child should have been under her parents supervision at all times. Register to View Answer Page 11 of 20 ADMIN01/900999.00295/12404462.6 University of Missouri-Kansas City Bloch School of Business MGT 306 (Section 0001) Spring 2012 Semester Legal, Ethical & Regulatory Environment of Business Office Hours: Before or after class or by appointment Tuesday, Thursday Bloch School, Room 12 8:00 am to 9:15 am Roger L. Hiatt (Lecturer) Stinson Morrison Hecker LLP 1201 Walnut, Suite 2900 Kansas City, Missouri 64106-2150 Telephone: 816-691-3373 Preferred E-mail: rhiatt@stinson.com UMKC Email: hiattr@umkc.edu EXAM I (Continued) 52. Arturo drove through an intersection without looking and hit Vincent's car that he had driven into the intersection without obeying a stop sign. Arturo sued Vincent. The jury found that Arturo's fault contributed 20 percent to the collision and determined that his total loss was $100,000. Under comparative negligence, the jury should award Arturo: a. b. c. d. $20,000. $80,000. $100,000. nothing. Register to View Answer 53. Tony raped Jane in the parking lot of Joe's Brew Pub. The District Attorney's office prosecuted Tony on rape charges. Subsequently, Jane filed a lawsuit against Tony for money damages. Classify each legal action. a. b. c. d. The District Attorney's case was a criminal case; Jane's lawsuit was a civil case. The District Attorney's case was a civil case. Jane's lawsuit was a criminal case. Both cases are criminal. Both cases are civil. Register to View Answer 54. Important steps in the criminal process, in the proper order, include: a. b. c. d. probable cause hearing, search, arrest, indictment, arraignment, plea bargain, and trial. arraignment, booking, bail hearing, trial, and grand jury indictment. arrest, probable cause hearing, motion to suppress, booking, and trial. indictment, arrest, probable cause hearing, plea bargain, arraignment, trial, and appeal. Register to View Answer Page 12 of 20 ADMIN01/900999.00295/12404462.6 University of Missouri-Kansas City Bloch School of Business MGT 306 (Section 0001) Spring 2012 Semester Legal, Ethical & Regulatory Environment of Business Office Hours: Before or after class or by appointment Tuesday, Thursday Bloch School, Room 12 8:00 am to 9:15 am Roger L. Hiatt (Lecturer) Stinson Morrison Hecker LLP 1201 Walnut, Suite 2900 Kansas City, Missouri 64106-2150 Telephone: 816-691-3373 Preferred E-mail: rhiatt@stinson.com UMKC Email: hiattr@umkc.edu EXAM I (Continued) 55. Congress enacted legislation in 1933 to regulate the securities industry and prohibit various forms of fraud with securities. The Securities Exchange Act of 1934 was passed a year later. This law created the Securities and Exchange Commission (SEC) as an independent regulatory entity whose function is to administer the two laws. The SEC has generated rules and regulations to administer these acts. These rules and regulations are: a. b. c. d. statutes. administrative law. executive orders. common law. Register to View Answer 56. Eric was charged with attempted murder. His defense was that he was insane at the time of the act. A jury accepted Eric's defense. Eric will: a. b. c. d. probably be committed to a mental hospital and when that hospital determines he is no longer a danger to society, he will be released. be declared guilty, but will have to serve his sentence in a mental hospital rather than in prison. have to be committed to a mental hospital until he regains his sanity, at which time he will be retried. be sent to prison once he is released from the mental ward. Register to View Answer Page 13 of 20 ADMIN01/900999.00295/12404462.6 University of Missouri-Kansas City Bloch School of Business MGT 306 (Section 0001) Spring 2012 Semester Legal, Ethical & Regulatory Environment of Business Office Hours: Before or after class or by appointment Tuesday, Thursday Bloch School, Room 12 8:00 am to 9:15 am Roger L. Hiatt (Lecturer) Stinson Morrison Hecker LLP 1201 Walnut, Suite 2900 Kansas City, Missouri 64106-2150 Telephone: 816-691-3373 Preferred E-mail: rhiatt@stinson.com UMKC Email: hiattr@umkc.edu EXAM I (Continued) 57. Diane, a police officer, stops Tim's car for a traffic offense. While talking to Tim, she shines a flashlight into the passenger compartment of Tim's car and sees evidence of drug paraphernalia. Which statement is correct? a. b. c. d. Diane may search the passenger compartment of the car and any place else in the car, including the trunk, without Tim's consent. Diane may search the passenger compartment of the car without Tim's consent; however, she may not search the trunk of the car without his consent or without a search warrant. Diane may not search the passenger compartment of the car (nor any place else) without Tim's consent or a search warrant. However, she can require Tim to remain parked until the search warrant is brought to her. Under the above circumstances, Diane can write Tim a traffic citation but cannot search the vehicle. Register to View Answer 58. Mulcare Corp. started a compliance program to prevent and detect criminal conduct within the company and had specific, high-level officers in charge of overseeing the program. The company effectively communicated the program to its employees and monitored those employees who were in a position to cheat. It promptly disciplined anyone who broke the law. One effect of having this program is: a. b. c. d. federal investigators would no longer investigate the company since Mulcare could take care of any problems internally. federal investigators might be convinced to limit any prosecution to those directly involved rather than attempting to get a conviction against high-ranking officers or against the company itself. the Federal Sentencing Guidelines no longer apply. any cases would be prosecuted in state, rather than federal, court. Register to View Answer Page 14 of 20 ADMIN01/900999.00295/12404462.6 University of Missouri-Kansas City Bloch School of Business MGT 306 (Section 0001) Spring 2012 Semester Legal, Ethical & Regulatory Environment of Business Office Hours: Before or after class or by appointment Tuesday, Thursday Bloch School, Room 12 8:00 am to 9:15 am Roger L. Hiatt (Lecturer) Stinson Morrison Hecker LLP 1201 Walnut, Suite 2900 Kansas City, Missouri 64106-2150 Telephone: 816-691-3373 Preferred E-mail: rhiatt@stinson.com UMKC Email: hiattr@umkc.edu EXAM I (Continued) 59. Lindell, Inc., a U.S. company, and Halden, AG, a German company, entered into a contract under which Halden is to ship party supplies to Lindell. One of the terms of the contract states, "Any disputes that arise under this contract will be resolved in the courts of Germany." This contract term is: a. b. c. d. a forum selection clause. a choice of law clause. an arbitration clause. not enforceable. Register to View Answer 60. SigmaTel and USCom are each applying for a wireless telecommunication license. In deciding which applicant is better qualified, the FCC will hold an initial hearing before: a. b. c. d. the OSHA. an administrative law judge. a Senate committee. a federal circuit judge. Register to View Answer 61. Jerry believes his co-worker, Ben, is using illegal drugs. Since both he and Ben are nurses, Jerry is concerned Ben's drug usage could result in injury to a patient. He tells his supervisor, Cyndi. Cyndi talks with Jerry about the alleged drug usage and Ben produces a bottle of prescription medicine he is required to take for high blood pressure. The medication does not affect his ability to do his work. When Ben learns it was Jerry who reported him, Ben claims that Jerry committed an act of defamation when Jerry told Cyndi he used illegal drugs. Is Ben right? a. b. c. d. Yes. Jerry committed slander. Yes. Jerry committed libel. No. Ben is, in fact, using drugs. No. Jerry is protected by the qualified privilege defense. Register to View Answer Page 15 of 20 ADMIN01/900999.00295/12404462.6 University of Missouri-Kansas City Bloch School of Business MGT 306 (Section 0001) Spring 2012 Semester Legal, Ethical & Regulatory Environment of Business Office Hours: Before or after class or by appointment Tuesday, Thursday Bloch School, Room 12 8:00 am to 9:15 am Roger L. Hiatt (Lecturer) Stinson Morrison Hecker LLP 1201 Walnut, Suite 2900 Kansas City, Missouri 64106-2150 Telephone: 816-691-3373 Preferred E-mail: rhiatt@stinson.com UMKC Email: hiattr@umkc.edu EXAM I (Continued) 62. In 1992, the North Carolina Supreme Court ruled in a case entitled Goodman v. Wenco Foods, Inc., that when a substance in food causes injury to a consumer of the food, it is not a bar to recovery against the seller that the substance was natural to the food. If, in a 2008 case involving a consumers injury caused by a fish bone in a bowl of fish chowder, the court followed the decision in Goodman v. Wenco Foods, Inc., the court's action in the second case is an example of: a. b. c. d. stare decisis. statutory law. public law. criminal law. Register to View Answer 63. Common law refers to: a. b. c. d. law that is the same or similar in all the states. law made when judges decide cases and then follow those decisions in later cases. law made by legislatures in the form of statutes. the legal systems of France, Germany, and Italy. Register to View Answer 64. The observation that "The one and only social responsibility of business is to increase its profits" can be attributed to: a. b. c. d. Justice Potter Stewart. John Akers. Milton Friedman. Jeffrey Sachs. Register to View Answer Page 16 of 20 ADMIN01/900999.00295/12404462.6 University of Missouri-Kansas City Bloch School of Business MGT 306 (Section 0001) Spring 2012 Semester Legal, Ethical & Regulatory Environment of Business Office Hours: Before or after class or by appointment Tuesday, Thursday Bloch School, Room 12 8:00 am to 9:15 am Roger L. Hiatt (Lecturer) Stinson Morrison Hecker LLP 1201 Walnut, Suite 2900 Kansas City, Missouri 64106-2150 Telephone: 816-691-3373 Preferred E-mail: rhiatt@stinson.com UMKC Email: hiattr@umkc.edu EXAM I (Continued) 65. E-presto, Inc. has established an EthicsLine. EthicsLine is a toll-free phone number that employees can call any time of the day, any day of the week to discuss ethics and report suspected unethical or improper conduct. Why would E-presto establish the EthicsLine? a. b. c. d. Ethical behavior improves productivity. Ethical behavior increases job stability. Unethical behavior can destroy a business. All of the above are reasons that would justify establishing an EthicsLine. Register to View Answer 66. Don runs a construction company. He hires people to work on his projects and tells them they are all "independent contractors." Legally, they are not independent contractors since Don tells the workers when to come to work, how long to work, what days to work, what they are to do each day, and so forth. At the end of each week, Don pays his workers in cash rather than with a check. Also, he does not withhold any state, federal or local withholding tax which employers are required to do by law for all employees (since he claims the workers are independent contractors). Which statement is correct? a. b. c. d. Don has committed both unethical and illegal conduct. Don has committed unethical conduct, but it is legal. Don has committed ethical conduct but it is illegal. Don has committed both ethical and legal conduct. Register to View Answer 67. Henry David Thoreau felt that war was unjust and therefore refused to pay his taxes when the United States declared war on Mexico. Thoreau felt that there was a higher law than the law of the land. Which theory of jurisprudence was he applying? a. b. c. d. Legal Positivism. Natural Law. Legal Realism. Common Law. Register to View Answer Page 17 of 20 ADMIN01/900999.00295/12404462.6 University of Missouri-Kansas City Bloch School of Business MGT 306 (Section 0001) Spring 2012 Semester Legal, Ethical & Regulatory Environment of Business Office Hours: Before or after class or by appointment Tuesday, Thursday Bloch School, Room 12 8:00 am to 9:15 am Roger L. Hiatt (Lecturer) Stinson Morrison Hecker LLP 1201 Walnut, Suite 2900 Kansas City, Missouri 64106-2150 Telephone: 816-691-3373 Preferred E-mail: rhiatt@stinson.com UMKC Email: hiattr@umkc.edu EXAM I (Continued) 68. The power of federal agencies is limited by: a. b. c. d. statutory control in the enabling legislation and the Administrative Procedures Act. political control by Congress and the President. judicial review. All of the above. Register to View Answer 69. John discovered his company's accountant was "skimming" money from the business. The accountant agreed to pay John a one-time payment of $25,000 not to report the skimming to company officials. The accountant promised she would pay the money back when she could. John accepted the money and never reported what he knew. A year later the accountant was fired when the embezzlement was discovered. She was also prosecuted for theft. The payment to John was never discovered. Which statement is correct? a. b. c. d. John's act was unethical and illegal. John's act was unethical but not necessarily illegal. John's act was ethical since he believed the accountant would return the money; however, it was illegal. Based on the facts, John's conduct was both ethical and legal given the special circumstances of this case. Register to View Answer 70. Zeno, Inc. is considering relocating its manufacturing facility from Illinois to Mexico City. The stakeholders in this decision might include: a. b. c. d. Zeno's shareholders. customers. the Illinois community in which Zeno operates. All of the above. Register to View Answer Page 18 of 20 ADMIN01/900999.00295/12404462.6 University of Missouri-Kansas City Bloch School of Business MGT 306 (Section 0001) Spring 2012 Semester Legal, Ethical & Regulatory Environment of Business Office Hours: Before or after class or by appointment Tuesday, Thursday Bloch School, Room 12 8:00 am to 9:15 am Roger L. Hiatt (Lecturer) Stinson Morrison Hecker LLP 1201 Walnut, Suite 2900 Kansas City, Missouri 64106-2150 Telephone: 816-691-3373 Preferred E-mail: rhiatt@stinson.com UMKC Email: hiattr@umkc.edu EXAM I (Continued) 71. A woman wishes to attend an all-male, publicly supported college. She claims the college is violating the Equal Protection Clause of the Constitution. What level of scrutiny will the court use when deciding this case? a. b. c. d. Minimal scrutiny Intermediate scrutiny Strict scrutiny Compelling interest scrutiny Register to View Answer 72. The most accurate statement regarding appellate courts is: a. b. c. d. appellate courts often hear new evidence and testimony. appellate courts generally accept the factual findings of the trial court. only the federal court system has appellate courts. appellate courts hear only criminal cases. Register to View Answer 73. Federal jurisdiction based upon a "federal question" includes cases based on: a. b. c. d. the United States Constitution. a federal statute. a federal administrative agency's decision. All of the above. Register to View Answer 74. What is the major distinction between executive and independent federal agencies? a. b. c. d. Executive agencies govern business issues while independent agencies regulate individual matters. The President has greater control over executive agencies. The Administrative Procedure Act regulates independent agencies but not executive agencies. Subpoenas may be issued by independent agencies; executive agencies do not have subpoena power. Register to View AnswerPage 19 of 20 ADMIN01/900999.00295/12404462.6 University of Missouri-Kansas City Bloch School of Business MGT 306 (Section 0001) Spring 2012 Semester Legal, Ethical & Regulatory Environment of Business Office Hours: Before or after class or by appointment Tuesday, Thursday Bloch School, Room 12 8:00 am to 9:15 am Roger L. Hiatt (Lecturer) Stinson Morrison Hecker LLP 1201 Walnut, Suite 2900 Kansas City, Missouri 64106-2150 Telephone: 816-691-3373 Preferred E-mail: rhiatt@stinson.com UMKC Email: hiattr@umkc.edu EXAM I (Continued) 75. The Miranda warning insures that the criminal suspects understand their constitutional rights relating to: a. b. c. d. search and seizure. self incrimination. double jeopardy. arrest and indictment. Register to View Answer Page 20 of 20 ADMIN01/900999.00295/12404462.6
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