Quiz 1 Chapter 1


Question 1 Japan violates an international law. Other countries may

Correct Answer:         a. boycott Japan’s goods.


Question 2 The Uniform Commercial Code has been adopted, at least in part, in

Correct Answer:         b. all states.


Question 3 Mike and Nan are involved in a case. The best definition of a case is

Correct Answer:         b. a judicial proceeding for the resolution of a dispute.


Question 4 James and Kay enter into a contract for the sale of a bicycle, but Kay later refuses to deliver the goods. James asks a court to order Kay to perform as promised. Ordering a party to perform what was promised is

Correct Answer:         d. an equitable remedy.


Question 5 Bob’s Burgers n’ Shakes Restaurant brings a suit in a court of law. At one time, a court of law could grant as a remedy only

Correct Answer:         c. damages.


Question 6 If a provision in the California state constitution conflicts with a provision in the U.S. Constitution

Correct Answer:         a. the U.S. Constitution takes precedence.


Question 7 Rupert is a victim of Sara’s violation of a criminal law. Criminal law is con­cerned with

Correct Answer:         a. wrongs committed against the public as a whole.


Question 8 In a suit against Ian, Jenna obtains an injunction. This is

Correct Answer:         d. an order to do or to refrain from doing a particular act.


Question 10 In an action against Gina, Harry obtains a remedy. This is

Correct Answer:         c. the legal means to recover a right or to redress a wrong.


Question 11 The Bay City Planning Department, the Coastal County Zoning Commission, the Delaware Environmental Quality Agency, and the U.S. Bureau of Land Management issue regulations. These rules constitute

Correct Answer:         c. administrative law.


Question 12 National law is

Correct Answer:         d. law that pertains to a particular nation.


Question 13 The branch of law dealing with the definition and enforcement of all private or public rights is

Correct Answer:         c. civil law.


Question 14 Deb and Earl are involved in a judicial proceeding for the resolution of a dispute. This is

Correct Answer:         b. an action.


Question 15 In Benny v. City Car Dealership, a state supreme court held that a minor could cancel a con­tract for the sale of a car. Now a trial court in the same state is decid­ing Dora v. Even Steven Auto Deals, Inc., a case with similar facts. Under the doctrine of stare decisis, the trial court is likely to

Correct Answer:         d. allow the minor to cancel the contract.


Question 16

As a judge, Baxter applies common law rules. These rules develop from

Correct Answer:         c. decisions of the courts in legal disputes.


Question 17 Street Market has a cause of action, which is best defined as

Correct Answer:         b. a situation giving a person a right to initiate a judicial proceeding.


Question 18 Hector is a state court judge. Ilena appears in a case in Hector’s court, claiming that Jacob breached a contract. Possible remedies include

Correct Answer:         b. an award of damages.


Question 19 Charles is a federal judge whose judicial decisions are part of case law, which does not include interpretations of

Correct Answer:         d. parties’ subjective motives for engaging in litigation.


Question 20Data Analytics, Inc., is a corporation engaged in the business of compiling, analyzing, and marketing data. To accomplish its purposes, Data Analytics obtains financing, and hires and fires employees. Laws and government regulations affect such business activities as

Correct Answer:         d. all of the choices.


Question 22 Congress enacts a statute, the Federal Deposit Insurance Corporation (an administrative agency) issues rules, the Southeast Financial Institutions Association (a private organizations) issues instructions, South Valley Bank posts a memo with orders for its employees, and Tina tells her co-worker about a recent news story. Sources of law include

Correct Answer:         a. the rules issued by federal administrative agencies.


Question 23 There are no precedents on which the court deciding the case Standard Resource Co. v. Topline Inventory, Inc., can base its decision. The court can consider, among other things,

Correct Answer:         c. public policy or social values.


Question 24 The Consumer Product Safety Commission is a government agency that issues rules, orders, and decisions. The Colorado state legislature enacts statutes. The Washington County Board and the Silver City Council enact or­dinances. Administrative law includes

Correct Answer:         a. the rules, orders, and decisions of the Consumer Product Safety Commission.


Question 25 The Tenth Amendment of the U.S. Constitution


Correct Answer:         d. defines the powers and limitations of the federal government.

Quiz 3 Business Ethics


Question 1 Steaks n’ Fries Restaurant Company’s decision makers view a particular risk in the consumption of Steaks n’ Fries’ products as open and obvious. Continuing to market the products without explicitly telling consumers of the risk could be justified from a perspective of

Correct Answer:         d. outcome-based ethics.


Question 2 Donna works for eMarketing, Inc. Her job includes putting “spin” on the firm’s successes and failures. In this context, ethics has to do with how businesspersons, in making their decisions, apply

Correct Answer:         d. moral and ethical principles.


Question 3 In making decisions for Commercial Janitorial & Maintenance Services, Inc., Isaiah uses a cost-benefit analysis. This analysis is part of

Correct Answer:         b. utilitarianism.


Question 4 Julie is sales manager for Kelso’s Concrete & Stone Products, Inc. In applying ethical principles to the business of the firm, Kelso’s and Julie will most likely evaluate

Correct Answer:         a. what duties and responsibilities should exist for the business.


Question 5 Palette Paints, Inc. expends funds and takes steps to ensure that all employees are safe on the job, that all products are safe for consumers, and that the environmental impact of the corporation is minimal. Palette Paints appears to believe in the concept of

Correct Answer:         a. corporate social responsibility.


Question 6 Peak & Vale Accountants provides other firms with accounting services. Questions of what is ethical involve the extent to which Peak & Vale has

Correct Answer:         d. an ethical duty beyond those duties mandated by law.


Question 7 Lucas is a business manager for Micro Manufacturing Company. Ethical dilemmas that Lucas is not likely to encounter include deciding

Correct Answer:         c. the kind of pizza to order for a company meeting.


Question 8 In studying the legal environment of business, students also review ethics in a business context. Ethics includes the study of what constitutes

Correct Answer:         d. fair or just behavior.


Question 9 Provident Medical Health Center asks its employees, many of which are mem­bers of the American Nurses Association, to apply the utilitarian theory of ethics. This theory does not require

Correct Answer:        

d. the acquiring of the means of production by workers.


Question 10 Dispatch Hauling Corporation has an online forum where employees can post comments. Eddie posts a racially offensive video on the forum. Dispatch should

Correct Answer:         b. take action against Eddie to show that racial discrimination is unacceptable at Dispatch.


Question 11 Morgan and other executive officers of Regional Economic Development Associates, Inc., applies the utilitarian theory of ethics in business contexts. Utilitarianism focuses on

Correct Answer:         c. the consequences of an action.

Question 12 Sam, the chief accounting officer of Texas Fencing Corporation, wants to be sure that all the company’s accounts are legal and ethical. Sometimes, however, he is unsure exactly what is legal and what is illegal. Sam should

Correct Answer:         d. try his best to not do anything illegal and keep documentation showing that he always acts in good faith.


Question 13 Duncan is in charge of the ethics of Earth Eggs, Inc., an organic egg raising company. As part of this responsibility, Duncan is most likely not in charge of

Correct Answer:         d. ethical reviews of employees’ family members.


Question 14 Ethical standards would most likely be considered violated if Team Logos Merchandising Corporation deals with a company in a developing nation that

Correct Answer:         a. routinely violates labor and environmental standards.


Question 15 Bob, research manager for CornAgri Products, Inc., ap­plies utilitarian eth­ics to determine that an action is morally cor­rect when it produces the greatest good for

Correct Answer:         b. the most people.


Question 16 As CEO of Alabama Archery Supplies, Bertrand applies ethical standards derived from religious principles. For businesses, religious principles can be

Correct Answer:         a. all of the choices.


Question 17 In making business decisions, Glenda, personnel manager for HVAC Maintenance, Inc., applies her belief that all persons have fundamental rights. This is

Correct Answer:         d. the principle of rights.


Question 18 Flexo Trucking Company transports hazard­ous waste. Garn is a Flexo driver, whom the company knows drives longer hours than federal regula­tions permit. One night, Garn exceeds the limit and has an accident. Spilled chemicals contaminate Hill City’s water source, forcing the residents to move away. Flexo acted unethically because

Correct Answer:         b. Flexo showed reckless disregard for Hill City’s residents and others.


Question 19 Any decision by the management of Fast-Food Franchise Corporation may significantly affect its

Correct Answer:         a. operators, owners, suppliers, the community, or society as a whole.

Question 20 Mary works in the accounting department of New Trends Sales Company. Her job includes reviewing expense reports submitted by management and employees. In determining which expenses are “padding,” Mary should apply to management

Correct Answer:         d. the same the same ethical principles that apply to employees.


Question 21 Fealty Credit Corporation asks its employees to evaluate their actions and get on the ethical business decision-making “bandwagon.” Guidelines for judging individual actions most likely include all of the following except

Correct Answer:         b. loopholes in the law or company policies.


Question 22 To assist in detecting illegal bribes, International Civil Engineers, Inc., and all other U.S. companies must

Correct Answer:         c. keep records that “accurately and fairly” reflect their financial activities.


Question 23 Ridgeline Excavation & Construction, LLC, creates an internal code of ethics. Like the codes of other firms, Ridgeline’s company code is not

Correct Answer:         c. law.


Question 24 Brewster, the chief executive officer of Cog & Gear Lubricants Corporation, wants to en­sure that Cog & Gear’s activities are legal and ethical. The best course for Brewster and Cog & Gear is to act

Correct Answer:         d. in good faith.


Question 25 In deciding questions of corporate social responsibility, Waste Disposal & Recycling, Inc., is concerned with


Correct Answer:         d. all of the choices.

Quiz 4 Courts and ADR


Question 1 Carol files a suit against Andy in a state trial court and loses. Carol

Correct Answer:         c. can plead her case before an appellate court .


Question 2 Gabrielle files a suit against Hard ‘n Fast Adhesives, Inc. Hard ‘n Fast responds that even if Gabrielle’s statement of the facts is true, according to the law Hard n’ Fast is not liable. This is a

Correct Answer:         d.  motion to dismiss.


Question 3 Noah files a suit in a state court against Olivia. The case proceeds to trial, after which the court renders a verdict. If either party appeals, the clerk of the trial court will send to the clerk of the appellate court within a prescribed period of time

Correct Answer:         d.  a copy of the record on appeal.


Question 4 Kari and Lillian, who are citizens of Mississippi, are involved in a case related to the adoption of their child. Over this case, Mississippi state courts have

Correct Answer:         d.  exclusive jurisdiction.


Question 5 Hope wants to file a suit against Gerry. For a court to hear the case,

Correct Answer:         c.  the court must have jurisdiction.


Question 6 Neville files a suit against Olina. If Olina fails to respond,

Correct Answer:         b.  Olina will have a default judgment entered against her.


Question 7 Lorena files a suit against Milton. Before going to trial, the parties, with their attorneys, meet to try to resolve their dispute. A third party suggests or proposes a resolution, which the parties may or may not decide to adopt. This is

Correct Answer:         d.  mediation.


Question 8 Millie and Noble dispute the quality of a set of patio furniture sold over the Internet. They agree to resolve their dispute in Come2Terms.com, an on-line forum. Like most online forums, Come2Terms.com applies

Correct Answer:         c.  general, universal legal principles.


Question 9 Tyler, a citizen of Utah, files a suit in a Utah state court against Veritas Sales Corporation, a Washington state company that does business in Utah. The court has original jurisdiction, which means that

Correct Answer:         a.  the case is being heard for the first time.


Question 10 SPF Sunscreen Corporation and Tanner agree to resolve their dispute through arbitration. The arbitrator’s decision is called

Correct Answer:         d.  an award.


Question 11 Liz and Moss disagree over the amount due under their con-tract. To avoid involving any third party in the resolution of their dispute, Liz and Moss might prefer to use the alternative dispute resolution method of

Correct Answer:         b.  negotiation.


Question 12 All Bikes, Inc., a firm in Wisconsin, advertises on the Web. A court in Ohio would be most likely to exercise jurisdiction over All Bikes if the firm

Correct Answer:         c.  did substantial business with Ohio residents over the Internet.


Question 13 To resolve a dispute in nonbinding arbitration, Alyson in Baltimore and Chuck in Denver utilize E-Resolve, an online dispute resolution (ODR) service. This limits these parties’ recourse to the courts

Correct Answer:         b. not at all.


Question 14 Ballpark Sportsfield, Inc., files a suit against Concessions & Tailgate Services. The document that informs Concessions & Tailgate that it must file an answer within a specified time period is

Correct Answer:         c.  the summons.


Question 15 Isabel and Josh engage in a business transaction that leads to a dispute. Isabel initiates a lawsuit against Josh by filing a complaint. The sheriff serves Josh with a summons. If Josh chooses to ignore it,

Correct Answer:         b.  Isabel will have a judgment entered in her favor.


Question 16 David, an Alabama resident, files a suit in an Alabama court against QuickAds, an Internet company based in Georgia that provides advertising services. QuickAds only contact with persons in Alabama has been through QuickAds’s passive advertising. The Alabama court is

Correct Answer:         a.  not likely to have jurisdiction over the case.


Question 17 Raylene files a suit against Travis. If this suit is like most cases, it will be

Correct Answer:         c.  settled before a trial.


Question 18 In a suit by the National Forest Preservation Organization (NFPO) against Old Growth Logging, Inc., NFPO serves a written request for Old Growth to admit the truth of matters relating to the trial. Old Growth’s admission in response is the equivalent of

Correct Answer:         b. an admission in court.


Question 19 Olivia, a citizen of Nebraska, wants to file a suit against Micah, a citizen of Kansas. Their diversity of citizenship may be a basis for

Correct Answer:         a.  a federal court to exercise original jurisdiction.


Question 20 Destiny and Enzo engage in a business transaction. When a dispute arises, Destiny initiates a lawsuit against Enzo by filing a complaint. If Enzo files a motion to dismiss, he is asserting that

Correct Answer:         b.  Destiny did not state a claim for which relief can be granted.


Question 21 If Cornel and Deanna resolve their dispute by having a neutral third party render a binding decision, they will have used the method of

Correct Answer:         c.  arbitration.


Question 22 First Community Credit Union and General Hydraulics. Inc., have their dispute resolved in arbitration. Before determining the award, the arbitrator meets with First Community’s representative to discuss the dispute without General Hydraulics’ representative being present. If this meeting substantially prejudices General Hydraulics’ rights, a court will most likely

Correct Answer:         b.  set aside any award.


Question 23 Daniel files a suit against Ava, alleging that she failed to pay him for two months’ labor at her Choice Cheese Factory. Ava denies the charge and claims that Daniel breached their contract to produce a certain quantity of cheeses and owes Ava damages for the breach. Ava’s claim is a

Correct Answer:         a. counterclaim .


Question 24 D’Antoni files a suit in a federal district court against Enya. D’Antoni loses the suit, appeals to the U.S. Court of Appeals for the Ninth Circuit, and loses again. D’Antoni asks the United States Supreme Court to hear the case. The Court is

Correct Answer:         b. not required to hear the case.


Question 25 The case of Max v. National Credit Co. is heard in a trial court. The case of O! Boy! Ice Cream Co. v. Pecan Corp. is heard in an appellate court. The difference between a trial and an appellate court is whether


Correct Answer:         d.  a trial is being held.


Quiz: Crime

·        Question 1

1 out of 1 points



Laird is an employee of Motor Parts, an auto parts store. On the orders of his employer, he switches trademarks on parts that come into the store to be sold to consumers. This is most likely


Correct Answer:

c. forgery.


·        Question 2

1 out of 1 points



Ryan is accused of a crime. Ryan refuses to give information related to his alleged criminal activities because he suspects it will be used to prosecute him. This is


Correct Answer:

c. the privilege against self-incrimination.


·        Question 3

1 out of 1 points



Suzu, an employee of Ridgeline Credit Union, deposits into her account checks entrusted to the credit union through its ATM system by customers to deposit into their accounts. This is


Correct Answer:

a.  embezzlement .


·        Question 4

1 out of 1 points



Frankie is accused of a crime. Frankie is given an opportunity to object to the charge before a judge. She is also given the opportunity to confront and cross-examine witnesses and to present her own witnesses. These procedures represent 


Correct Answer:

b.  due process of law.


·        Question 5

1 out of 1 points



Ludwig receives from Milo a marimba stolen from Nadine. To be criminally liable, Ludwig must know 


Correct Answer:

a. that the marimba is stolen and Ludwig must intend to keep it .


·        Question 6

1 out of 1 points



Edie uses television ads to defraud millions of people. She can most likely be charged with


Correct Answer:

b.  wire fraud.


·        Question 7

1 out of 1 points



Kimberly, the owner of Little Cinema, trusts Max to manage the theater’s daily cash flow. One night, without Kimberly’s knowledge or consent, Max takes and keeps $1,000 from the receipts. This is most likely


Correct Answer:

c.  embezzlement.


·        Question 8

1 out of 1 points



Via the Internet, Rocky sabotages the computer system of Quik Chik’n Company, a food manufacturer, with the purpose of altering the levels of ingredients of the company’s products so that consumers of the food become ill. Rocky is


Correct Answer:

a.  a cyberterrorist .


·        Question 9

1 out of 1 points



Maura enters a convenience store and points a gun at the clerk Nate. She then forces Nate to open the cash register and give her all the money. Maura will most likely be charged with


Correct Answer:

b.  robbery .


·        Question 10

1 out of 1 points



Mariah takes off her ring and places it on her desk while she works. Without her knowledge or consent, her coworker Nita picks up the ring, puts it on, and walks away. Nita has likely committed


Correct Answer:

c.  larceny .


·        Question 11

1 out of 1 points



Chadwick signs Dolores’s name, without her authorization, to the back of her paycheck issued by E-Market Solutions, Inc. This is 


Correct Answer:

a.  forgery.


·        Question 12

1 out of 1 points



Herb, a computer programmer for Inventory Control Corporation, is arrested in his employer’s parking lot on suspicion of larceny. Herb must be informed of his right to


Correct Answer:

b.  remain silent.


·        Question 14

1 out of 1 points



Mike is arrested at a warehouse in North Industrial Park and is charged with the crime of theft. Mike will be prosecuted by


Correct Answer:

b.  a public official.


·        Question 15

1 out of 1 points



 Domino causes a disturbance at El Nino Cafe. He is arrested and charged with disorderly conduct, a misdemeanor. A misdemeanor is a crime punishable by


Correct Answer:

c.  imprisonment up to one year .


·        Question 16

1 out of 1 points



Robert uses FedEx in a scheme to defraud Standard Sales Company by obtaining merchandise to which he is not entitled. Found guilty of mail fraud, Robert can be punished by


Correct Answer:

b.  imprisonment for up to five years and fines of up to $1,000.


·        Question 17

1 out of 1 points



Sandy, a businessperson, is convicted of RICO offenses. Sandy’s penalties may include


Correct Answer:

d. all of the choices.


·        Question 18

1 out of 1 points



Dirk, an employee of Ergonomic Elevators, Inc., pays Ferbie, an employee of Ergonomic’s competitor G-Force Risers Company, for a secret G-Force pricing schedule. This is


Correct Answer:

d. commercial bribery.


·        Question 19

1 out of 1 points



Sun-Hi, who operates a Pan-Asian restaurant in her apartment, is charged with criminal violations of the local health and building codes, state license regulations, and federal environmental statutes. The standard of proof to find a defendant who has been charged with a crime guilty is


Correct Answer:

d.  beyond a reasonable doubt.


·        Question 20

1 out of 1 points



Dmitri sends e-mail to Eva Marie, promising her a percentage of the amount in a foreign bank account if she will assist in transferring the funds to a U.S. bank account. Eva Marie forwards her account number, but the funds are never sent. Instead, Dmitri quickly withdraws the funds in Eva Marie’s account. This is


Correct Answer:

c.  cyber fraud.


·        Question 21

1 out of 1 points



Benito accesses Creditline Bank’s computer system without authority to obtain protected financial and credit records. Under federal law, this is


Correct Answer:

d.  a felony if it was done for a commercial purpose.


·        Question 22

1 out of 1 points



Patricia commits an act via e-mail against Othman Finance Company, a business in California, where the act is a cyber crime. Patricia resides in New York where the act is not a crime. Prosecution of Patricia in California involves questions of


Correct Answer:

a.  jurisdiction.


·        Question 23

1 out of 1 points



Paxton uses social media to post links that, when clicked, secretly install software on hundreds of others’ personal computers without their owners’ knowledge Paxton’s software is harmful to the computers on which he installed it. This program is


Correct Answer:

c.  malware .


·        Question 24

1 out of 1 points



Evan is charged with a crime. Almost all federal courts and some state courts would not hold Evan liable if, at the time of the offense, as a result of a mental disease or defect, Evan lacked substantial capacity to


Correct Answer:

b.  appreciate the wrongfulness of his conduct or obey the law.


·        Question 25

1 out of 1 points



Posing as Visa Bank, Walt e-mails Paulina, asking her to update her credit-card information through a link in the e-mail. She clicks on the link and types in the data, which Walt promptly sells to Ilana. This is


Correct Answer:

c.  phishing .