San José State University – LSB 3213: Legal
Environment of Business Exam 1 Study Guide
2025/2026
1. Which of the following is one of the three schools of The narrow view
thought that de�ne corporate social responsibility in
practice?
2. Even when the United States Congress has not en- Negative Commerce; Dor-
acted legislation, the mere existence of congressional mant Commerce
commerce powers under Article I, Section 8 of the
U.S. Constitution restricts the states from discriminat-
ing against or unduly burdening interstate commerce.
This is known as the __________ Clause or __________
Clause.
3. Ethical dilemmas faced by managers are often simple, False
with a clear ethical choice.
4. The original United States Constitution was drafted in False
1787 and consists of a preamble, three separate arti-
cles, and the �rst ten amendments to the Constitution
(collectively referred to as the Bill of Rights).
5. Habitat for Humanity is an example of a __________. community-based non-
pro�t
6. Even when the United States Congress has not enacted True
legislation, the mere existence of congressional com-
merce powers under Article I, Section 8 of the Consti-
tution restricts the states from discriminating against
or unduly burdening interstate commerce.
7. Suppose a general contractor headquartered in New A federal court sitting in ei-
York sues a subcontractor headquartered in New Jer- ther New York or New Jer-
sey for breach of contract, claiming $90,000 in dam- sey
1/8
, ages. Which court has subject matter jurisdiction over
the case?
8. In its 2010 decision Citizens United v. Federal Elec- precedent
tion Commission, the United States Supreme Court
held that political spending is a form of protected
speech under the First Amendment to the U.S. Consti-
tution, and that the government may not keep corpo-
rations or unions from spending money to support or
denounce individual candidates in elections. Citizens
United is an example of case __________.
9. Google LLC's widely known "Don't be evil" policy is an values
example of __________ management.
10. The doctrine of __________ is the principle that similar stare decisis
cases with similar facts and issues should have the
same judicial outcome.
11. Law may be established by: judicial decisions, legisla-
tive enactments, and ac-
tions of government agen-
cies.
12. Which of the following is true regarding the judiciary's The Zippo standard has
adoption of the Zippo standard? been adopted by a majori-
ty of federal circuits, as well
as by several state courts.
13. For a federal court to have jurisdiction over a diversity False
of citizenship case, the amount in controversy must be
less than $100,000.
2/8
Environment of Business Exam 1 Study Guide
2025/2026
1. Which of the following is one of the three schools of The narrow view
thought that de�ne corporate social responsibility in
practice?
2. Even when the United States Congress has not en- Negative Commerce; Dor-
acted legislation, the mere existence of congressional mant Commerce
commerce powers under Article I, Section 8 of the
U.S. Constitution restricts the states from discriminat-
ing against or unduly burdening interstate commerce.
This is known as the __________ Clause or __________
Clause.
3. Ethical dilemmas faced by managers are often simple, False
with a clear ethical choice.
4. The original United States Constitution was drafted in False
1787 and consists of a preamble, three separate arti-
cles, and the �rst ten amendments to the Constitution
(collectively referred to as the Bill of Rights).
5. Habitat for Humanity is an example of a __________. community-based non-
pro�t
6. Even when the United States Congress has not enacted True
legislation, the mere existence of congressional com-
merce powers under Article I, Section 8 of the Consti-
tution restricts the states from discriminating against
or unduly burdening interstate commerce.
7. Suppose a general contractor headquartered in New A federal court sitting in ei-
York sues a subcontractor headquartered in New Jer- ther New York or New Jer-
sey for breach of contract, claiming $90,000 in dam- sey
1/8
, ages. Which court has subject matter jurisdiction over
the case?
8. In its 2010 decision Citizens United v. Federal Elec- precedent
tion Commission, the United States Supreme Court
held that political spending is a form of protected
speech under the First Amendment to the U.S. Consti-
tution, and that the government may not keep corpo-
rations or unions from spending money to support or
denounce individual candidates in elections. Citizens
United is an example of case __________.
9. Google LLC's widely known "Don't be evil" policy is an values
example of __________ management.
10. The doctrine of __________ is the principle that similar stare decisis
cases with similar facts and issues should have the
same judicial outcome.
11. Law may be established by: judicial decisions, legisla-
tive enactments, and ac-
tions of government agen-
cies.
12. Which of the following is true regarding the judiciary's The Zippo standard has
adoption of the Zippo standard? been adopted by a majori-
ty of federal circuits, as well
as by several state courts.
13. For a federal court to have jurisdiction over a diversity False
of citizenship case, the amount in controversy must be
less than $100,000.
2/8
