Law and Ethics in the Business Environment – Final Exam
Question 1
Typically, individual stockholders are not held responsible for the actions of a corporation. Exceptions
usually relate to comingling of funds, underinsuring, or similar actions by the corporate leadership.
This is called:
Piercing the corporate veil
Question 2
The ADA direct threat provision permits an employer to impose a:
“Requirement that an individual shall not pose a direct threat to the health or safety of other individuals
in the workplace.”
Question 3
According to John Locke, the purpose of government is to institute restraints to protect property
rights.
False
Question 4
According to Alice Kaswan, environmental justice has had:
A modest impact on environmental law
Question 5
Citizens have always been afforded freedom of speech after the ratification of the U.S. Constitution.
False
Question 6
The Lanham Act:
Gives competitors the right to sue for false claims a rival company makes about the competitor’s
product.
, Question 7
To win a suit for negligence, a plaintiff must establish that the defendant:
I. Breached its duty of care
II. Owed a duty of care to the plaintiff
III. Acted with total disregard to the harm that could result
IV. Behavior was the proximate cause of the plaintiff’s injuries
I, II and IV only
Question 8
According to Stephen Sugarman, performance-based regulation happens when:
The government sets targets for how much harm is allowed for each product produced and the company
is fined or penalized for any harm beyond the acceptable level.
Question 9
In a lawsuit for copyright infringement, a defendant can avoid liability by successfully arguing
_________, based on the notion that the free flow of ideas sometimes requires quoting or borrowing
from a copyrighted work.
Fair use
Question 1
Patents are a possible form of protection for the inventors of tools, machines, processes, and other
"novel, useful and non-obvious" inventions.
True
11. Discuss how corporate criminal liability has been handled under OSHA since 1970. What changes,
if any, do you think should be made in this regard?
Since the OSHA Act of 1970, the Justice Department has found ways to seek criminal sanctions in cases
of serious harm to workers. One example is the Worker Endangerment Initiative, which was launched in
2005. This change was needed, because before the initiative being created, OSHA had assessed light
penalties and only a few convictions (89 criminal prosecutions in more than 390,000 workplace fatalities,
to be exact). The Justice Department uses tougher criminal provisions of environmental statutes to
Question 1
Typically, individual stockholders are not held responsible for the actions of a corporation. Exceptions
usually relate to comingling of funds, underinsuring, or similar actions by the corporate leadership.
This is called:
Piercing the corporate veil
Question 2
The ADA direct threat provision permits an employer to impose a:
“Requirement that an individual shall not pose a direct threat to the health or safety of other individuals
in the workplace.”
Question 3
According to John Locke, the purpose of government is to institute restraints to protect property
rights.
False
Question 4
According to Alice Kaswan, environmental justice has had:
A modest impact on environmental law
Question 5
Citizens have always been afforded freedom of speech after the ratification of the U.S. Constitution.
False
Question 6
The Lanham Act:
Gives competitors the right to sue for false claims a rival company makes about the competitor’s
product.
, Question 7
To win a suit for negligence, a plaintiff must establish that the defendant:
I. Breached its duty of care
II. Owed a duty of care to the plaintiff
III. Acted with total disregard to the harm that could result
IV. Behavior was the proximate cause of the plaintiff’s injuries
I, II and IV only
Question 8
According to Stephen Sugarman, performance-based regulation happens when:
The government sets targets for how much harm is allowed for each product produced and the company
is fined or penalized for any harm beyond the acceptable level.
Question 9
In a lawsuit for copyright infringement, a defendant can avoid liability by successfully arguing
_________, based on the notion that the free flow of ideas sometimes requires quoting or borrowing
from a copyrighted work.
Fair use
Question 1
Patents are a possible form of protection for the inventors of tools, machines, processes, and other
"novel, useful and non-obvious" inventions.
True
11. Discuss how corporate criminal liability has been handled under OSHA since 1970. What changes,
if any, do you think should be made in this regard?
Since the OSHA Act of 1970, the Justice Department has found ways to seek criminal sanctions in cases
of serious harm to workers. One example is the Worker Endangerment Initiative, which was launched in
2005. This change was needed, because before the initiative being created, OSHA had assessed light
penalties and only a few convictions (89 criminal prosecutions in more than 390,000 workplace fatalities,
to be exact). The Justice Department uses tougher criminal provisions of environmental statutes to
