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"True or False questions 1. Ethics is the study of how people should act.

"True or False questions

1. Ethics is the study of how people should act.

2. An investor who wants to comply with her ethical choice to follow Islamic law could invest in the Amana Fund, which will not invest in holdings that earn interest.

3. There is strong evidence that ethical behavior pays off financially for businesses.

4. Unethical behavior is a bar to financial success.

5. The ethics checklist provided in the textbook serves two purposes: it helps clarify the issues and it produces the one correct answer to an ethical dilemma.

6. Society is hurt when business managers behave ethically.

7. Researchers who study happiness find that people expect material goods to make them happier than they actually do.

8. Generally, ethical managers have happier, more satisfying lives.

9. The behavior of top executives regarding ethical issues has little effect on the behavior of the employees of the organization.

10. A company that engages in unethical behavior may suffer severe consequences.

11. Wever, Inc. is considering relocating a facility to Mexico. The interests of the various stakeholders affected by this decision may conflict.

12. In analyzing ethical dilemmas using the ethics checklist presented in the textbook, it is best to narrow your focus to encompass only one or two major issues.

13. There are values, such as integrity, that are generally considered universal.

14. Because of the increasing medical concern over obesity in the United States, federal regulation of advertising has effectively reduced to one-tenth of all advertising during children’s television programs advertisements for foods high in fat, sugar, and salt and low in nutrition.

15. The ethics checklist provided in the textbook was created by Supreme Court Justice Potter Stewart to aid business managers in finding solutions to difficult ethical problems.

1. If Lorenzo is seeking an injunction against Brenda to prevent her from selling materials that infringe his copyright, he is entitled to a jury trial if the value of the materials is over $100.

2. 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.

3. Hankrin Corp. is incorporated under Delaware law and has its principal place of business in Annapolis. For diversity purposes, it is considered a resident only of Maryland.

4. Primary methods of alternative dispute resolution include litigation and mediation.

5. Generally, mandatory arbitration provisions in a contract are valid.

6. Judge Abbott can serve as both a federal judge and a state court judge at the same time.

7. A prospective juror was excused from serving after being questioned by the plaintiff's attorney. No reason was given for the rejection. This would be accomplished by the use of a peremptory challenge.

8. Summary judgment is appropriate when there are no essential facts in dispute.

9. In order for a federal court to have jurisdiction, there must be a federal question involved and at least $75,000 in dispute.

10. After being served with a summons and a copy of the complaint, a defendant usually files a pleading known as an answer, briefly replying to each allegation in the complaint.

11. In a civil case, the plaintiff must prove the case beyond a reasonable doubt.

12. A summons is a paper ordering a defendant to answer a complaint within a certain time.

13. An appeals court can rule that a trial court's ultimate ruling was correct even if the trial court made some minor errors during the trial.

14. If interrogatories are being used as a form of discovery, the opposing party must generally answer all the questions orally under oath.

15. Emails and their attachments are not subject to pretrial discovery.

1. 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.

2. 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.

3. The largest source of new law is court decisions.

4. The majority of work done by legislative bodies is performed in committees.

5. Even if a statute’s words have ordinary, everyday significance, the court will look at the legislative history of the law and public policy in order to interpret the statute.

6. If the President vetoes a bill and if both the House and Senate repass the bill by a two-thirds margin, the bill becomes law.

7. The Federal Trade Commission promulgated Telemarketing Sales Rules regulating the activities of telemarketers. One of the rules prohibits telemarketers from calling a person's residence at any time other than between 8:00 a.m. and 9:00 p.m. This legislative rule has the effect of a statute.

8. The Civil Rights Act of 1964, a federal statute, forbids discrimination on the basis of national origin in employment. The Equal Employment Opportunity Commission (EEOC) is the administrative agency that oversees the law. The EEOC issued Guidelines on Discrimination because of National Origin. According to one of the guidelines, the EEOC will presume a violation of the law if an employer sets a work requirement that employees must speak only English in the workplace. This is an interpretive rule because it interprets the Civil Rights Act.

9. The Occupational Safety and Health Administration (OSHA) has proposed rules aimed at reducing repetitive-stress injuries. ATC, Inc. disagrees with the proposed rules. ATC, Inc. should challenge the proposed rules in court to prevent them from becoming final rules.

10. From tax returns, the Internal Revenue Service (IRS) has information concerning Elizabeth Jones. Generally, the IRS may not divulge this information to the Federal Bureau of Investigation unless Elizabeth has given written consent.

11. Administrative agencies exist at the federal, state, and local levels.

12. Because of the concept of stare decisis, the U. S. Supreme Court, in interpreting a statute in 2009, will necessarily interpret certain statutory language in the same way as the U. S. Supreme Court interpreted the same statutory language in 1971.

13. The President has the power to remove the chairperson of the Consumer Product Safety Commission, an independent federal administrative agency, if the President disagrees with the chairperson's actions.

14. Common law, like statutory law, is prospective.

15. Actual hearings are required in formal administrative agency rulemaking.

1. Multinational enterprises are companies doing business in several countries simultaneously.

2. As of 2007, the top 15 countries which traded goods with the United States accounted for 80.5 percent of total U.S. trade.

3. Tariffs are generally higher in developing countries than in developed countries.

4. Generally, consumers are not adversely affected by tariffs since tariffs affect wholesale prices, not retail prices.

5. Ad valorem duty is based on the fair market value of the imported good as of the date it reaches the United States, not the price actually paid for the good when sold for export to the United States.

6. Although the United States government officially signed the GATT treaty, the United States Congress has refused to ratify the agreement.

7. The European Union is the world’s most powerful regional association with 16 member nations as of 2009.

8. A contract involving the sale of goods from a Texas seller to a French wholesaler must use the United Nations Convention on Contracts for the International Sale of Goods (CISG).

9. If the United States sets a limit on the number of cars that can be imported, this action is a form of tariff.

10. It is a violation of United States law for a domestic company to pay money to a foreign governmental official in order to obtain favorable influence of the foreign government.

11. The Presidents of Oxtron, Inc., a U.S. company, and Dunka, Inc. a German company, met in Munich, Germany. Oxtron and Dunka are direct competitors in over-the-counter medicines. The presidents agree to fix prices on their major products. This agreement may violate U.S. antitrust law even though the agreement was made in Germany.

12. Trein, Inc., a U.S. company entered into an exclusive distributorship agreement with Posty, Inc., a Zambian company. This means that Trein will only use Posty to distribute products in Zambia.

13. Under European Union law, any agreement, contract, or discussion that distorts competition within European Union countries is illegal.

14. International comity holds that the courts of one nation lack the jurisdiction to hear suits against foreign governments.

15. The two principal requirements of the Foreign Corrupt Practices Act involve bribes and grease payments.

For manufactured goods, the United States and European Union impose an average tariff of ________ percent, and major trading partners around the world impose tariffs of ________ percent for identical items.
a. 10; 5
b. less than 4; 10 to 30
c. 25; 39 to 70
d. 10 to 30; less than 4

2. Axle Corporation imports goods into the United States. Who is required to pay the duty on the imported goods?
a. The importer, Axle Corporation.
b. The World Trade Organization.
c. Each party pays one-half the duty.
d. The exporter of the goods.

3. The United States and Argentina have signed the Convention on Contracts for the International Sale of Goods (CISG). Oxtron, Inc., a U.S. company, and Leer, an Argentinean company, have entered into a contract under which Oxtron is to ship medical devices to Leer. The contract does not include a choice of law provision. The contract will be governed by:
a. the CISG.
b. the UCC.
c. the domestic contract law of Argentina.
d. the domestic contract law of the United States.

4. The United States and Singapore have signed the Convention on Contracts for the International Sale of Goods (CISG). Notren, Inc., a U.S. company, and SWT, a Singapore company, have entered into a contract under which SWT is to ship party supplies to Notren. One of the terms of the contract states, "The validity and performance of this contract will be governed by the Uniform Commercial Code (UCC) of the state of New York, not the Convention of the International Sale of Goods (CISG)." The contract will be governed by the:
a. CISG.
b. Uniform Commercial Code of New York.
c. common law.
d. World Trade Law.

5. Oxtron, Inc., a U.S. company, and Leer, an Argentinean company, orally agreed to a contract under which Oxtron is to ship medical devices to Leer. The contract is governed by the CISG. Which statement is correct?
a. The contract is not enforceable because it is oral.
b. Whether the contract is enforceable without a written agreement depends on the value of the medical devices.
c. Whether the contract is enforceable without a written agreement depends on whether the medical devices are a necessity.
d. The contract is enforceable without a written agreement.

6. In Marubeni America Corp. v. United States, the federal appellate court ruled that the Nissan Pathfinder was, for tariff classification purposes a motor vehicle for the transport of passengers. The classification of goods is significant because:
a. the tariffs will vary depending on the classification.
b. the fair value will vary depending on the classification.
c. the subsidy will vary depending on the classification.
d. the dumping duty will vary depending on the classification.

7. If a foreign company "dumps" goods on the United States market:
a. the goods will be considered illegal goods and not be allowed to be sold in the United States.
b. the United States will issue trade sanctions against the country that allowed the dumping.
c. a "dumping duty" will be imposed on the dumped goods if the Commerce Department determines the goods are being sold at less than fair value and that this harms an American industry.
d. All the above are correct.

8. Notren, Inc., a U.S. company, and SWT, a Singapore company, entered into a contract under which SWT is to ship party supplies to Notren. One of the terms of the contract states, "Any disputes that arise under this contract will be resolved in the courts of Singapore." This contract term is a:
a. letter of credit.
b. choice of language clause.
c. choice of forum clause.
d. draft clause.

9. What is a major argument against the GATT Treaty?
a. The United States will have to compete against countries with unlimited pools of exploited labor.
b. The United States will lose millions of jobs involving low-end employment and these types of workers are least capable of finding other employment.
c. Both a and b above are major arguments against GATT.
d. Neither a nor b above is a major argument against GATT.

10. The European Union used to be known as the:
a. GATT.
b. Common Market.
d. Euro.

11. Zebra Toy Company, located in Chicago, sells $500,000 worth of toys to a London, England, wholesaler. This contract could be governed by:
a. Illinois's Uniform Commercial Code.
b. English law.
c. the CISG.
d. All the above are correct.

12. With respect to United States patents and copyrights, GATT:
a. expressly excludes controversies involving patent and copyright violations.
b. will allow the United States to assess tariffs against a country that refuses to honor U.S. copyrights or patents.
c. imposes sanctions against any country refusing to honor another signatory country's patents or copyrights.
d. requires retribution to be paid to the United States by any country ignoring U.S. patents or copyrights.

13. The primary goal of the North American Free Trade Agreement (NAFTA) is to:
a. allow Canada, the United States, and Mexico to compete as a common economic entity against other countries in the world.
b. allow for the free and unrestricted movement of people from one country to another to improve the labor market of all three counties.
c. eliminate almost all trade barriers between the three nations.
d. All the above are correct.

14. What is a major difference between a United States lawsuit versus a French lawsuit?
a. In a French civil lawsuit, there is usually no right to a jury trial.
b. The French legal system does not engage in extensive discovery procedures commonly used in the United States.
c. In a French lawsuit, the rules of evidence are more flexible.
d. All of the above are correct.

15. The primary antitrust law in the United States is the:
a. Wagner Act.
b. Sherman Act.
c. SEC Act of 1933.
d. Robinson-Patman Act.

16. 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 "account party" is:
a. Irish Eyes.
b. Hardhat Machine Company.
c. Big Bank.
d. None of the above.

17. 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. No, payment is not due until the goods are delivered.
b. No, payment is not due until 30 days after delivery.
c. No, payment is not due until the buyer has had a reasonable time to inspect the goods.
d. Yes, the letter of credit is a promise by the bank to pay when certain documents are presented.

18. As of 2007 figures, the country trading the most goods with the United States was:
a. Canada.
b. China.
c. Japan.
d. Mexico.

19. Zebra Toy Company invests a large sum of money in retail stores located in a foreign country. Zebra intends to bring its foreign earnings back home to the United States. This practice is known as:
a. repatriation of profits.
b. inflow profit streaming.
c. expropriation.
d. comity.

20. The Australian government has opened a tourist information center in New York City. If a dispute arises over the lease of the storefront, may the landlord sue the Australian government in the United States courts?
a. Yes, because the Australian government was engaged in a commercial activity.
b. No, because of the Foreign Sovereign Immunities Act which forbids U.S. courts from hearing any cases involving foreign governments.
c. It depends. The Australian government can only be sued if it signed a written waiver giving up its immunity.
d. It depends. The Australian government can only be sued if it is a signatory on the CISG.

21. MagNet, a small United States computer company, started doing business in a foreign country. The foreign country later decided to take over all computer industry, including MagNet's operation. The foreign country paid MagNet adequate compensation in United States dollars. The foreign country’s action is called:
a. comity.
b. repatriation.
c. expropriation.
d. inflow profit streaming.

22. Kjell is the vice president of international sales for Oxtren, Inc, a U.S. company. To secure a multimillion dollar contract for his company, Kjell paid a Mongolian governmental officer $10,000. Kjell:
a. has violated the Foreign Corrupt Practices Act.
b. has not violated the Foreign Corrupt Practice Act because the payment was a grease payment.
c. has not violated the Foreign Corrupt Practices Act because the government official was from Mongolia, not the United States.
d. has not done anything illegal because Congress has not ratified the Convention of Combatting Bribery of Foreign Public Officials in International Transactions.

23. 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. he will have violated the Foreign Corrupt Practices Act.
b. he will not have violated the Foreign Corrupt Practices Act because this would be considered a “grease” or facilitating payment, which is legal.
c. he will be guilty of violating the Foreign Corrupt Practices Act only if the payment was illegal under the written law of Mexico.
d. 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.

24. Archer Co. has decided it wants to expand into international business, but it is concerned about expropriation of its property or losses caused by political unrest. Archer is considering purchasing insurance through the Overseas Private Investment Corporation (OPIC). OPIC:
a. provides insurance, but the cost is relatively high.
b. provides insurance, but the list of countries in which it is willing to provide such protection is fairly short.
c. has had remarkable success at no cost to the U.S. government.
d. insures against expropriation, but not against losses stemming from political violence.

25. The United States has agreed to which of the following?
a. GATT.
c. CISG.
d. All of the above.

ANS: D PTS: 1 MSC: AACSB Analytic



1. In analyzing a situation to determine how to act ethically, a business manager should:
a. gather background information by either talking firsthand with the people involved or by talking to those who gained information informally through the company “grapevine.”
b. narrowly focus on a single issue.
c. determine whether an alternative violates important values.
d. All of the answers are correct.

2. Zeno, Inc. is considering relocating its manufacturing facility from Illinois to Mexico City. The stakeholders in this decision might include:
a. Zeno's shareholders.
b. customers.
c. the Illinois community in which Zeno operates.
d. All of the above.

3. Ethics is the study of:
a. sovereign immunity.
b. how people should act.
c. respondeat superior.
d. victimization.

4. Does ethical behavior maximize profitability?
a. Yes, there is concrete evidence that ethical behavior maximizes profitability.
b. No, there is concrete evidence that unethical companies outperform ethical companies.
c. Although there is no guarantee that ethical behavior pays in the short or long run, there is evidence that the ethical company is more likely to win financially.
d. There is strong evidence that ethical behavior pays financially in the long run, but not in the short run.

5. Why should ethics be a concern to business?
a. Society as a whole benefits from ethical behavior.
b. People feel better when they behave ethically.
c. Unethical behavior can be very costly.
d. All of the above.

6. Which of the following values are considered almost universal?
a. Courage.
b. Pusillanimity.
c. Solifidianism.
d. All the answers are correct.

7. Which of the following are alternatives in dealing with issues of ethics in advertising?
a. Try, in a general way, to minimize racism, sexism, and other exploitation.
b. Include, as part of the development process, a systematic, focused review of the underlying messages contained in advertisements.
c. Refuse to create ads that are potentially demeaning, insensitive, or dangerous, recognizing that such a stand may lead to a loss of clients.
d. All of the above are alternatives in dealing with issues of ethics in advertising.

8. A manager making a decision without fraud, prejudice, or favoritism is exhibiting the value of:
a. compassion.
b. integrity.
c. fairness.
d. responsibility.

9. Research has shown that the least important motivation for managers in behaving ethically is:
a. they want to feel good about themselves.
b. they want to feel good about the decisions they make.
c. they value their reputation.
d. profitability.

10. Why do many major corporations actively encourage ethical behavior?
a. Unethical behavior always damages a business.
b. Unethical behavior can quickly destroy a business.
c. Unethical acts are always illegal.
d. All of the above are reasons that corporations actively encourage ethical behavior.

11. Unethical behavior in an organization can create:
a. a cynical workforce.
b. a resentful workforce.
c. an unproductive workforce.
d. All of the above.

12. The observation that "The one and only social responsibility of business is to increase its profits" can be attributed to:
a. Justice Potter Stewart.
b. John Akers.
c. Milton Friedman.
d. Jeffrey Sachs.

13. 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. Ethical behavior improves productivity.
b. Ethical behavior increases job stability.
c. Unethical behavior can destroy a business.
d. All of the above are reasons that would justify establishing an EthicsLine.

14. Kent needed to reduce his workforce by five people. Before notifying them, he thought about how he would feel if he were the one receiving the news and he tried to find ways to help the employees in their transition. Kent was exercising the value of:
a. courage.
b. compassion.
c. fairness.
d. responsibility.

15. One result of the Gillette Co. sale to Procter & Gamble Co. discussed in the textbook was that:
a. four percent of the Gillette workforce, or about 6,000 employees, were fired.
b. ten percent of the Gillette workforce, or about 35,000 employees, were fired.
c. Gillette’s stock price went down 13 percent in one day when the sale was announced.
d. Kilts, the CEO of Gillette, became unemployed.

16. Ethical companies:
a. tend to earn higher returns than companies that engage in wrong-doing.
b. tend to have more creative employees than companies that engage in wrong-doing.
c. are guaranteed to be more profitable in the long run than companies that engage in wrong-doing.
d. All of the above..
e. Both (a) and (b).

17. Chelvam is the director of quality control. Chelvam rejected some parts as non-conforming to the specifications. Chelvam's supervisor directs him to accept the parts. Which value might give Chelvam the strength to oppose his supervisor?
a. Consideration.
b. Courage.
c. Greed.
d. Pusillanimity.

18. Paul decided he did not want the new jeans he had purchased from a large discount department store. He had worn them three times and decided he just did not like them. The jeans fit him fine and there is nothing wrong with them. He takes the jeans back to the store and, as is its policy, the store gave him a full refund of his money. Which statement is correct?
a. Paul's conduct was not unethical since the store's policy of giving full cash funds applied.
b. Paul's conduct was unethical.
c. Paul's conduct was unethical, even though the store had a legal obligation to return his money.
d. Paul's conduct was ethical since the store has a legal duty to return his money when he returned the jeans.

19. 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. Toxic waste disposal law.
b. The harm the disposal could cause to the environment.
c. The impact on the business if the decision is publicly disclosed through the news media.
d. All of the above.

20. 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 (since he claims the workers are independent contractors). Which statement is correct?
a. Don has committed both unethical and illegal conduct.
b. Don has committed unethical conduct, but it is legal.
c. Don has committed ethical conduct but it is illegal.
d. Don has committed both ethical and legal conduct.

21. Which of the following is NOT a question in the ethics checklist?
a. How much profit will an alternative earn for my company?
b. Who are the stakeholders?
c. Is more than one alternative right?
d. What are the facts?

22. 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. The company may develop a formal, written ethics code.
b. The company may institute a formal ethics training program for the employees.
c. The top executives may provide good examples by behaving ethically themselves.
d. All of the above alternatives have been used by U.S. companies to create an ethical environment in their organizations.

23. Lois is running for political office. She trails the incumbent and decides to start running a series of "attack ads." The attack ads are very effective and one week before the election it appears that she has drawn even with her opponent. Lois admits that the attack ads were exaggerations and contained some distortions. Which statement is correct?
a. Lois has engaged in unethical behavior.
b. Lois has engaged in ethical behavior since she has an obligation to her supporters to run a campaign that will help her get elected.
c. It is not possible to determine whether Lois's attack ads were ethical or unethical.
d. Assuming Lois's attack ads were unethical, her conduct is justified and proper if she to gets elected.

24. Jeffrey Sachs, a leading economist and adviser to developing nations, has expressed concern that:
a. there are too few sweatshops.
b. there are too many sweatshops.
c. children are being forced to work in developing nations.
d. the United States is not involved enough in forcing developing nations to eliminate both child labor and sweatshops.

25. 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. John's act was unethical and illegal.
b. John's act was unethical but not necessarily illegal.
c. John's act was ethical since he believed the accountant would return the money; however, it was illegal.
d. Based on the facts, John's conduct was both ethical and legal given the special circumstances of this case.

1. The concept of stare decisis focuses most on:
a. predictability.
b. flexibility.
c. legislative intent.
d. change.

2. Karen is a strong swimmer. One afternoon she is having a picnic at a lake and sees a man she does not know drowning. Generally, Karen:
a. has a legal duty to rescue the man.
b. has a legal duty to rescue the man, but only if her efforts will not pose a serious threat to her own safety.
c. has a legal duty to rescue the man since, as a strong swimmer, she is treated as a "special class" of persons who must get involved in such situations.
d. has no legal duty to rescue the man.

3. The U.S. Supreme Court was asked to decide whether same-sex sexual harassment 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. The plain meaning rule.
b. Legislative history.
c. Public policy.
d. All of the above.

4. Statutory law is to legislative bodies as common law is to:
a. England.
b. precedent.
c. courts.
d. administrative regulations.

5. The power of federal agencies is limited by:
a. statutory control in the enabling legislation and the Administrative Procedures Act.
b. political control by Congress and the President.
c. judicial review.
d. All of the above.

6. Psychologist Holtz is working with a patient, Rebecca, who has expressed the intention to seriously harm two of her acquaintances. If you apply the principle set forth by the Supreme Court of California in the Tarasoff v. Regents of the University of California case, Psychologist Holtz:
a. has, because of the bystander rule, no duty to warn the foreseeable victims about Rebecca’s expressed intention to harm them.
b. has a duty to exercise reasonable care to protect foreseeable victims of Rebecca’s violence.
c. is in a special relationship with patients, and this relationship creates a privilege of confidentiality between the communicants.
d. will be held to a strict duty of care and will be held liable for any victim’s injuries if Holtz failed to warn a them of Rebecca’s potential violence toward them.

7. The Environmental Protection Agency was investigating whether Exgrow, Inc. violated the Clean Air Act. Exgrow refused to give the EPA its computerized reports concerning pollution. To get the reports, EPA should use:
a. a stare decisis.
b. a de novo.
c. an excaliber.
d. a subpoena duces tecum.

8. Assume that in December 2006, the Environmental Protection Agency (EPA) filed an administrative complaint against Marlin 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. A jury decides the matter.
b. The Federal Rules of Criminal Procedure govern the admissibility of evidence.
c. The losing party has a right to appeal.
d. The parties are not represented by attorneys.

9. If in 1900 the Minnesota Supreme Court ruled that a minor can void a contract at any time during minority and in 2008 the courts in Minnesota still follow this ruling, this is an example of:
a. stare decisis.
b. the bystander rule.
c. statutory law.
d. enabling legislation.

10. The last protected trait added by Congressman Smith of Virginia to the bill which became Title VII of the Civil Rights Act of 1964 was:
a. sex.
b. sexual orientation.
c. national origin.
d. race.

11. What is the major distinction between executive and independent agencies?
a. Executive agencies govern business issues while independent agencies regulate individual matters.
b. The President has greater control over executive agencies.
c. The Administrative Procedure Act regulates independent agencies but not executive agencies.
d. Subpoenas may be issued by independent agencies; executive agencies do not have subpoena power.

12. The Administrative Procedure Act:
a. applies to all federal agencies.
b. applies to executive branch agencies but not to independent agencies.
c. applies to independent agencies but not to executive branch agencies.
d. does not apply to federal agencies.

13. Administrative agency rules consist of:
a. executive and independent rules.
b. legislative and interpretive rules.
c. informal and "notice and comment" rules.
d. promulgated and unpromulgated rules.

14. The U.S. Supreme Court’s holding in Ward’s Cove Packing v. Atonio:
a. differed from the holding in Griggs v. Duke Power Co. partly because the Court was more conservative at the time Ward’s Cove was decided.
b. upheld the ruling in Griggs v. Duke Power Co.
c. found that overt racial discrimination existed.
d. set forth a “business necessity” requirement for employment hiring practices.

15. A subpoena duces tecum is different from an ordinary subpoena in that a subpoena duces tecum:
a. can only be given to an expert to require a personal appearance before a court or administrative hearing.
b. is binding on a person even if it is mailed to the person rather than handed to her by a process server.
c. allows for privileged or confidential information to be turned over the a court or administrative agency.
d. requires the person to bring specified documents to the court or administrative hearing.

16. Congresswoman Sloan introduced a bill in the House of Representatives. If the bill is approved by the House committee specializing in that subject, the bill will go to:
a. a Senate committee specializing in the subject matter of the proposed legislation.
b. the full House.
c. a Conference Committee made up of representatives of both the House and Senate.
d. the voters of her state for approval.

17. Bert had his driver's license suspended by the state department of transportation. He believes his constitutional due process rights were violated by the administrative agency. Can he immediately file a court action to have agency's actions reviewed?
a. Yes. A court has the jurisdiction to immediately review an agency's alleged unconstitutional action.
b. Yes. Bert must specifically allege his constitutional rights have been violated and file a court action in federal court - not a state court.
c. No. Bert must first utilize the administrative agency's procedures to review the suspension before he seeks judicial review by a court.
d. No. A court of law does not have jurisdiction to review an administrative agency's actions.

18. TECO Coal Corporation mines and ships more than six million tons of coal annually. TECO is comprehensively regulated by the U.S. Bureau of Mines. The U.S. Bureau of Mines may conduct a surprise inspection of one of TECO's mines:
a. only if it has a search warrant.
b. only if it has a subpoena.
c. only if it has reason to believe a violation of a regulation has occurred.
d. without a search warrant to ensure safety.

19. SharCo and Blyron Productions are each applying for a television license. In deciding which applicant is better qualified, the FCC will hold an initial hearing before:
a. the OSHA.
b. an administrative law judge.
c. an administrative mediator.
d. a House-Senate Conference Committee.

20. Which statement is correct concerning judicial review of an administrative agency's action?
a. Courts usually accept the facts of the case as determined by the agency and often defer to the agency's interpretation of the law.
b. Courts conduct a de novo review of the case.
c. Courts ignore the facts of the case.
d. Courts substitute their opinion for that of the agency.

21. Tina wishes to learn what records the IRS has about her. Under the Freedom of Information Act (FOIA),
a. Tina can only obtain copies of declassified information.
b. Tina is entitled to all information the IRS has about her.
c. Tina can only obtain information about the IRS, not records concerning herself.
d. Tina cannot obtain any information since the IRS is exempt from the FOIA.

22. TECO Coal Corporation is interested in the inspections that the U.S. Bureau of Mines has conducted over the past year. To secure this information, TECO should:
a. issue a subpoena duces tecum.
b. make a Freedom of Information Act request.
c. make a de novo request.
d. assert the substantial evidence rule.

23. The purpose of the Freedom of Information Act (FOIA) is:
a. to give the government access to information concerning citizens, businesses, and organizations.
b. to limit the amount of information that the government can collect about its citizens, businesses, and organizations.
c. to permit warrantless searches and seizures of evidence when necessary to ensure safety.
d. to give citizens, businesses, and organizations access to information that federal agencies are using.

24. The Consumer Product Safety Commission (CPSC) is an independent federal administrative agency. Which statement is correct about the chairperson?
a. The chairperson serves at the whim of the President and can be fired at any time.
b. The chairperson can only be fired by the President for good cause.
c. The chairperson cannot be fired by the President since the CPSC is an independent agency.
d. The chairperson has a lifetime appointment and cannot be fired.

25. Which law regulates how federal agencies make rules, conduct investigations, hold meetings and hearings, obtain information, and reach decisions?
a. The 1964 Civil Rights Act.
b. The Clean Agency Act.
c. The Administrative Procedure Act.
d. The Freedom of Information Act.

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