Deck 17: The Legal and Regulatory Environment of Business

Question 1

In the United States, as in all complex societies, we've entrusted the responsibility for adopting and enforcing legal rules and principles to _____.

A)the police
B)lawyers
C)government
D)courts

Answer 1

C

Question 2

Under the rule of law, a legal system can achieve a reasonable degree of fairness only if it guarantees equal treatment of all members of society.

Answer 2

True

Question 3

Statutory laws are laws enacted by administrative agencies.

Answer 3

False

Question 4

After serving in Congress, George McGovern ran a successful hotel in Stratford, Connecticut.

Question 5

The key to flexibility in a legal system is flexibility on the level at which rules and principles are _____.

A)applied
B)made
C)broken
D)needed

Question 6

In premises liability laws, there's a subcategory called "slip?and?fall" laws because slipping and falling are at the heart of so many premises?liability lawsuits.

Question 7

Laws and regulations influence almost all areas of business.

Question 8

Under the rule of law, the legal system establishes the rules of the game, adopting and enforcing them in a reasonably predictable manner.

Question 9

McGovern believes we are too convinced about safety and environmental issues.

Question 10

Laws are designed to serve a general function that is the promotion of justice for businesses.

Question 11

In less than a year,McGovern's small business ownership had come to an end.

Question 12

George McGovern was a small business owner before he was a politician.

Question 13

The legal system consists of the institutions and processes that actually enforce our rules and principles.

Question 14

Tort reform is a movement to stem the swelling tide of personal-injury litigation in the U.S.

Question 15

The U.S.legal system has always been successful in guaranteeing equal treatment under the law.

Question 16

Organizational law is law pertaining to rules set down by any of the numerous agencies and departments created to administer federal or local law.

Question 17

The good thing about laws is that they can be written to take care of all contingencies that arise during the course of life.

Question 18

Because the U.S.legal system is very fair, innocent parties are never forced to bear the cost of defending themselves in court.

Question 19

Jonathan Swift likened _____ to "cobwebs" because they seem to stretch in every direction to catch innocent flies while failing utterly to stop wasps and other creatures responsible for much greater crimes against human comfort.

A)businesses
B)laws
C)lawmakers
D)bureaucracy

Question 20

Government legislation and regulation often pose economic and management burdens for many U.S.businesses.

Question 21

Which of the following is NOT a primary function served by law in the United States?

A)Keeping the peace
B)Promoting social justice
C)Shaping moral standards
D)Restricting individual freedom

Question 22

Laws preventing the forcible overthrow of the government are meant to _____.

A)facilitate orderly change
B)promote social justice
C)maximize individual freedom
D)maintain the status quo

Question 23

The legal environment of business is the place where business interacts with the legal system.

Question 24

The punishment in tort cases is the monetary compensation that the court orders the defendant to pay the plaintiff.

Question 25

Assault and battery violates statutes established by two different types of law-criminal and civil.

Question 26

_____ is the principle by which government legitimately exercises its authority only in accordance with publicly declared laws that are adopted and enforced according to established procedure.

A)Fairness doctrine
B)Rule of law
C)Predictability
D)Equal treatment

Question 27

Since 1868, U.S.courts have used the _____of the Fourteenth Amendment to the Constitution to check a range of potentially discriminatory and unfair actions by governments at every level.

A)Equal Protection Clause
B)Equal Rights Act
C)Fair Labor Standards Act
D)Anti-discrimination Clause

Question 28

Laws discouraging such activities as drug or alcohol abuse are meant to _____.

A)promote social justice
B)shape moral standards
C)maximize individual freedom
D)provide a basis for compromise

Question 29

Through the _____, the U.S.legal system is prepared to address each issue or dispute on its own terms.

A)penal system
B)court system
C)legislative branch
D)regulatory system

Question 30

Laws ensuring such rights as freedom of speech and religion are meant to _____.

A)maximize individual freedom
B)provide a basis for compromise
C)shape moral standards
D)promote social justice

Question 31

Assault and battery is a criminal matter and does not involve civil law.

Question 32

George McGovern explained that Americans are ready to _____ at the drop of a hat.

A)fight
B)go into debt
C)sue
D)resolve disputes

Question 33

List and describe the primary functions served by law in the United States.

Question 34

If a case has been adjudicated, then it is pending in court.

Question 35

Punishment in a tort case includes fines, imprisonment, or both.

Question 36

_____ is a body of enforceable rules and principles of conduct.

A)A statute
B)A regulation
C)Law
D)A code of conduct

Question 37

Civil law prohibits and punishes wrongful conduct, such as assault and battery, murder, robbery, extortion, and fraud.

Question 38

A tort is a civil wrong resulting in an injury done to someone's person or property.

Question 39

Laws and practices making it possible to resolve disputes without taking them to trial are meant to _____.

A)maximize individual freedom
B)provide a basis for compromise
C)facilitate planning
D)facilitate orderly change

Question 40

In the United States, the legal system _____ to respond to changes in social norms and commercial activities.

A)remains rigid
B)stalls out
C)changes rapidly
D)evolves

Question 41

Complaints of assault and battery fall under a specific type of civil law called _____.

A)slander
B)negligence torts
C)strict liability torts
D)intentional torts

Question 42

The direct cause?and?effect relationship between the defendant's action and the plaintiff's injury is called a cause in fact.

Question 43

If someone's carelessness provides cause for legal action it is called "cause in fact."

Question 44

The weight of evidence necessary for a judge or jury to decide in favor of the plaintiff or the defendant is called _____.

A)proof beyond a reasonable doubt
B)a preponderance of evidence
C)criminal intent
D)disparagement

Question 45

Intentional torts against property include _____.

A)entering another person's land without permission
B)interfering with another person's use or enjoyment of personal property
C)permanently removing property from the rightful owner's possession
D)all of the above

Question 46

Defamation means communicating to a third party information that's harmful to someone's reputation.

Question 47

Defamation delivered orally is called libel.

Question 48

A negligence tort results not from intentional wrongdoing, but from carelessness.

Question 49

Briefly discuss the differences between criminal and civil law.

Question 50

Defamation in written form is called slander.

Question 51

If you direct outrageous conduct at someone and that person suffers extreme emotional pain as a result, you may be held liable for intentional infliction of emotional distress.

Question 52

Liability in civil cases must be established by proof beyond a reasonable doubt.

Question 53

Intentional torts against property are the most common torts when it comes to disputes in business.

Question 54

A misdemeanor is a crime that's not "inherently evil" but that is nevertheless prohibited by society.

Question 55

Law governing disputes between private parties is called _____.

A)intentional tort
B)criminal law
C)civil law
D)liability tort

Question 56

An agreement is an exchange of promises or an exchange of a promise for an act.

Question 57

In court, the _____ is the party filing the complaint, while the _____ is the party charged in the complaint.

A)district attorney / criminal
B)accuser / accused
C)defendant / plaintiff
D)plaintiff / defendant

Question 58

Actual cause is the direct cause?and?effect relationship between the defendant's action and the plaintiff's injury.

Question 59

Intentional torts against economic interests include all of the following except _____.

A)making a false statement of material fact about a business product
B)enticing someone to breach a valid contract
C)going into business for the sole purpose of taking business from another concern
D)all of the above are intentional torts against economic interests

Question 60

_____ is making unauthorized and harmful physical contact with another person while _____ is threatening another person with such contact.

A)Incursion / violence
B)Assault / battery
C)Battery / assault
D)Aggression / battery

Question 61

John Parrimore and Mary Gonzales have entered into a _____.The legal and enforceable agreement between the two parties creates an obligation or duty to either do or not to do something specific.

A)binding agreement
B)contract
C)agency agreement
D)partnership

Question 62

The standard for determining proximate cause is generally foreseeability.

Question 63

A contract to commit an unlawful act or to violate public policy is void.

Question 64

The basic obligation that one person owes another not to cause harm or an unreasonable risk of harm is called _____.

A)cause of duty
B)cause in fact
C)actual cause
D)duty of care

Question 65

Most actions of any kind set in motion a series of consequent actions, and the court must decide the point beyond which a defendant is no longer liable for these actions.This point is called _____.

A)proximate cause
B)cause in fact
C)actual cause
D)cause of duty

Question 66

Offer and acceptance are the two parts of consideration in a contract.

Question 67

The law works to make business relationships as predictable as possible.

Question 68

The law assumes that, when performing employment duties, an employee is under the control of the employer.

Question 69

An employee's actions fall within the scope of his employment if _____.

A)they are performed in order to fulfill contractual duties owed to his employer
B)the employer is in some control, directly or indirectly, over the employee's actions
C)the employer has contractual capacity
D)both a and b

Question 70

If a LuLu's Diner employee spills scalding hot coffee on a customer causing third degree burns, the owner of LuLu's Diner is held responsible for the employee's actions.

Question 71

The median award for damages in civil cases is $90,000.

Question 72

Which of the following involves an exchange between an offeror and an offeree?

A)An agreement
B)A cause in fact
C)A duty of care
D)A contract

Question 73

A contract that has been broken _____.

A)will be executed at a later date
B)is unenforceable
C)has been breached
D)has contractual capacity

Question 74

A contract is _____.

A)an exchange of a promise for an act
B)is legally enforceable
C)must have an offerer and an offeree
D)all of the above

Question 75

Discuss employer-employee contracts and the doctrine of respondeat superior.

Question 76

A contract can be enforced only if it has:

A)one party has agreed to the contract.
B)one party must agree to perform some act.
C)both parties must be over age 25.
D)the purpose of the contract must be legal.

Question 77

Respondeat superior translates as _____.

A)"Let the master answer for the servant's actions"
B)"Let the buyer beware"
C)"The long arm of the law"
D)"Reasonable and prudent man"

Question 78

To prove that an act, such as dropping a can of paint onto a homeowner's property, was negligent, the homeowner must demonstrate:

A)that the defendant owed a duty of care to the plaintiff.
B)that the defendant breached his/her duty of care.
C)that the defendant's breach of duty of care caused injury to the plaintiff or the plaintiff's property.
D)all of the above.

Question 79

Which of the following is NOT one of the requirements of a legal contract?

A)Mutual agreement
B)Both parties must possess legal capacity to assume contractual duties
C)Each agrees not to cause harm or unreasonable risk to the other party
D)Each must exchange something of legal value

Question 80

Litigation takes an average of 6 months from the time a complaint is filed until a judgment is rendered.