LEGAL ENVIRONMENT OF BUSINESS

TRUE/FALSE

1. A corporation is recognized as a person and enjoys many of the legal privileges of a U.S. citizen.

2.Imposing liability on shareholders of a corporation for the obligations of the corporation is achieved by breaking the corporate ceiling.

3.A corporation doing business in the United States, but formed in another country is referred to as a foreign corporation.

4.Doctors, lawyers, dentists and accountants often use PC, SC, or PA to incorporate.

5.Scienter is a wrongful state of mind.

6.Tipper/tippee and misappropriation are two theories of prospectus delivery.

7.State corporation securities laws are often referred to as blue sky laws.

8.Approximately 90% of all civil lawsuits are resolved thru ADR.

9.Arbitration is nonbinding whereas mediation is binding.

10.According to the court in Cleveland Construction vs. Levco Construction, the Federal Arbi- tration Act does not preempt a state statute allowing a party to void a previously negotiated pro- vision.

11.The limitation of damages clause in Lhotka vs. Geographic Expeditions, Inc. was found to be void due to substantive unconscionability.

12.Google's code of conduct starts with the motto, "Don't be evil".

13.Bipolarization is the premier philosophical theory for outcome based decision making de- veloped by Bentham and modified by Mill.

14.Commitment to good citizenship with a commitment to making ethical decisions is called corporate moral responsiveness.

15.In contract law, intent is determined by an objective theory of contracts.

16.In Pan Handle Realty vs. Olins, the court ruled that there must be a meeting of the minds before an enforceable contract exists and as such no lease existed between the parties.

17.A bilateral contract exists if the offeree can accept simply by promising to perform.

18.Worker compensation laws provide for compensation, in accidental injuries, dependent upon fault.

19.COBRA allows a terminated employee to receive health care coverage without a change in premium.

20.Intentional discrimination by an employer is known as disparate-treatment discrimination.

21.According to Dees vs. United Rentals, demonstration of pretext in termination requires more than a subjective belief.

22.Fear of litigation is sufficient to disregard promotion testing results.

23.A union shop is a firm that requires union membership as a result of employment.

24.According to Local Joint Executive Board of Las Vegas vs. NLRB, an employer may provide additional information to employees considering a union vote.

25.A lockout is an employer's counterpart to a strike.

MULTIPLE CHOICE

26.What is the primary document needed to incorporate a business?

A.bylaws

B.articles of confederation

C.articles of incorporation

D.S corp. designation

27.De facto corporations are recognized in some states, but not others, including that abolished them by virtue of the RMBCA.

A.Mississippi

B.Tennessee

C.New York

D.Ohio

28.According to the court in Brennan's Inc. vs. Colbert, a court may ignore the corporate fic- tion, if the corporation is merely the of the shareholder.

A.identity

B.persona

C.conscience

D.alter ego

29.The SEC interprets securities laws, investigates violations and .

A.oversees inspections of firms and brokers

B.oversees athletics in the northwest

C.oversees corporate veil piercing

D.was established by the Secular Exchange Act of 1926.

30.According to the U.S. Supreme Court, an investment contract is determined by what test?

A.SEC litmus test

B.controls standard evaluation

C.Howey test

D.S. corp. evaluation

31.To determine potential interest without actually selling securities is known as :

A.testing the waters

B.water stocks

C.venture capital

D.initial public offering

32.In Litwin vs. Blackstone, the court held that an omission must be to the investors' decision.

A.relevant

B.material

C.irrelevant

D.immaterial

33.Defects in the arbitration process that will lead to an award being unenforceable include arbitrator bias, refusal to hear evidence, powers are exceeded and .

A.lack of attention

B.guarantor validity

C.undue means

D.none of the above

34.Requiring arbitration be held in a sometimes arbitrary jurisdiction is allowed by the Supreme Court under a clause.

A.forum arbitrate

B.forum non convenes

C.venue allocation

D.choice of law

35.Arbitration that is court ordered rather than by contract provisions is called what?

A.court-annexed arbitration

B.summary jury trial

C.online dispute resolution

D.mini-trial

36.The combination of corporate profits, impact on people and impact on the planet.

A.business ethics

B.triple bottom line

C.long run profit maximization

D.moral minimum

37.According to the court in May vs. Chrysler, a corporate citizen, just as a private citizen, can be responsible for punitive damages, if it acted with the requisite .

A.mental state

B.physical state

C.fiscal state

D.both B and C

38.What are the two major categories of ethical reasoning in business?

A.moral/immoral

B.cost driven/personal driven

C.duty based/outcome based

D.religious/theological

39.Who said that when people are treated as a means to an end, basic humanity is being de- nied?

A.George Bernard Shaw

B.Emmanuel Lewis

C.Sigmund Freud

D.Immanuel Kant

40.If the following are met, you have a contract: service or property furnished, expecta- tion of payment, and opportunity to reject.

A.unilateral

B.express

C.implied

D.formal

41.Acceptance takes effect at the time the Offeree sends the communication of acceptance is known as?

A.confirmation rule

B.mailbox rule

C.E-contract rule

D.substitute acceptance rule

42.As in Baugh vs. Columbia Health Clinic, a covenant to compete clause requires:

A.past consideration

B.no consideration

C.either A or B

D.new consideration

43.What is the only state that does not apply the employee at will doctrine?

A.Wyoming

B.Montana

C.Nevada

D.Minnesota

44.According to Waddell vs. Boyce Thompson, a policy put in place after employ- ment has begun will not result in an implied contract of employment.

A.wrongful discharge

B.child labor

C.whistleblowing

D.minimum wage

45.In NASA vs. Nelson, the Supreme Court determined that rights are not violated by

.

A.privity/lie detector tests

B.privacy/background checks

C.vesting/ACA disclosures

D.monitoring/electronic privacy

46.Reasonable accommodations must be made based upon religious practices unless there is:

A.undue hardship

B.unintentional discrimination

C.class action

D.both B and C

47.Gender discrimination includes:

A.national origin

B.race

C.pregnancy

D.color

48.Disabilities covered by the ADA include:

A.physical impairment

B.mental impairment

C.alcohol and drug addiction

D.all of the above

49.is the formal term for a green card.

A.alien registration receipt

B.H-2 visa

C.I-9 verification

D.blueseed document

50.In Trollinger vs. Tyson Foods, the court held that the Tyson plant in Shelbyville had improp- erly complied with what?

A.alien registration receipt

B.H-2 visa

C.I-9 verification

D.blueseed document