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BUSFIN 3500 Final Exam 2025 – Legal Environment of
Business Study Guide, Practice Questions, and Answer Key
Ace your BUSFIN 3500 Final Exam with this comprehensive 2025 study guide covering key
topics in the Legal Environment of Business. Includes practice exams, multiple-choice
questions, contract law summaries, business ethics, torts, and real-world legal applications.
Perfect for Ohio State University (OSU) and similar business programs. Get the latest version
with verified exam review materials and answer explanations.
BUSFIN 3500 final exam,
BUSFIN 3500 study guide,
BUSFIN 3500 legal environment of business,
directed verdict - ANSWER-this motion is a request for the court to __________ for the defendant
because even if the jury accepted all the evidence and testimony presented by the plaintiff as true, the
jury would still have no legal basis for a decision in favor of the plaintiff
unfair competition - ANSWER-this tort exists because U.S. law protects businesses action on the profit
motive. Thus, when someone enters an industry with the sole intent of driving another firm out of
business, the law punishes this act as ___________
Fiduciary Rule - ANSWER-the highest legal duty and standard for ethical business conduct.
Otis Engineering Corp v. Clark - ANSWER-Matheson, employee of Otis, was drunk on the job. His boss
asked him to leave and escorted him to the parking lot. Matheson drove home and got into a wreck,
killing the wives of Larry and Clifford Clark. The Clarks sued for wrongful death, but were dismissed
because Matheson wasn't acing within the scope of his job. Court of appeals reversed. Generally, one
person is under no duty to control the conduct of another even if he has the practical ability to do so.
Yet, certain relationships do impose, as a matter of law, certain duties upon parties. When, because of
an employee's incapacity, an employer exercises control over the employee, the employer has a duty to
,2|Page
take such action to prevent the employee from causing an unreasonable risk of harm to others.
Remanded.
what is the order of the stages of the civil legal process? - ANSWER-pleading stage
discovery stage
trial stage
appellate stage
Uniform Arbitration Act (UAA) - ANSWER-Gives arbitrators the power to swear witnesses and give
subpoenas
affirmative defense - ANSWER-a defendant uses an _______ when her or his answer admits that the
facts contained in the complaint are accurate but also includes additional facts that justify the
defendant's actions and provide a legally sound reason to deny relief to the plaintiff.
Motion to dismiss - ANSWER-upon receiving the complaint, if the defendant believes that even though
all the plaintiff's factual allegations are true, the law does not entitle the plaintiff to a favorable
judgement, the defendant may file a ______________
Counterclaim - ANSWER-If the defendant believes he has a claim against the plaintiff, he includes this
_________ with his answer
mock trials - ANSWER-Jury selection firms set up __________ by recruiting individuals who match the
demographics of the real jury to listen to attorney' arguments and witnesses' testimony
Shadow jury - ANSWER-parties also often hire jury selection firms to provide _______. Like a mock trial,
a _________ uses individuals whose demographics match the demographics of a trial's real jurors.
Facts- employer sends an obviously intoxicated employee home in the middle of a shift, and the
employee is involved in a car collision killing himself and the occupants of the others car, who were
married to the plaintiffs.
, 3|Page
Presidential authority over foreign affairs - ANSWER-the president's ability to make law regarding
foreign affairs derives from the presidential power to make treaties, subject to the advice and consent
of two thirds of the senate.
Presidential authority over domestic affairs - ANSWER-the president's authority over domestic affairs is
yet another source of law. Article II if the Constitution of the U.S. provides that the president "shall take
Care that the Laws be faithfully executed."
Interaction among the various source of law - ANSWER-the various sources of law in the U.S. do not
operate in a vacuum. The three branches of government frequently interact. This interaction provides a
system of checks and balances in which the branches may aid or block each other.
Legal reasoning - ANSWER-The rest of this chapter looks at a method of thinking called legal reasoning.
Legal reasoning cannot be precisely defined. Because it is a method of reasoning, the most that can be
hoped for is a functional description of the process. Indeed, it is ironic but true that generations of law
students have been taught to "think like a lawyer" without ever having been told explicitly just what is
meant by that statement. Although the method of reasoning that underlies legal reasoning is not unique
to the legal system, we find the method most prominently displayed there. This is due in part to the
methods and doctrines developed by courts to guide their decision making. Because courts explain their
decisions in written opinions, we turn to court opinions for examples of legal reasoning
Precedent-Based Rationales - ANSWER-involve the basic question of whether an earlier decision applies
to the present case, or if it is in some significant way different from the present controversy.
Policy-Based Rationales - ANSWER-Focus on who should be making policy, rather than on the policy
issues themselves
The Lawyer's Role - ANSWER-Lawyers play many roles in relation to the business firm. They counsel the
firm's managers regarding transactions, compliance with regulations, review of contracts and a variety
of other legal matters. They draft and review legal documents. Their primary goal as counsellors and
drafters is to prevent legal problems from developing
Attorney-Client Privilege - ANSWER-The attorney-client privilege protects only the communication
between the client and the attorney. The communication must be for the purpose of obtaining legal
advice. The underlying information is not protected. A client cannot hide information just by telling it to
BUSFIN 3500 Final Exam 2025 – Legal Environment of
Business Study Guide, Practice Questions, and Answer Key
Ace your BUSFIN 3500 Final Exam with this comprehensive 2025 study guide covering key
topics in the Legal Environment of Business. Includes practice exams, multiple-choice
questions, contract law summaries, business ethics, torts, and real-world legal applications.
Perfect for Ohio State University (OSU) and similar business programs. Get the latest version
with verified exam review materials and answer explanations.
BUSFIN 3500 final exam,
BUSFIN 3500 study guide,
BUSFIN 3500 legal environment of business,
directed verdict - ANSWER-this motion is a request for the court to __________ for the defendant
because even if the jury accepted all the evidence and testimony presented by the plaintiff as true, the
jury would still have no legal basis for a decision in favor of the plaintiff
unfair competition - ANSWER-this tort exists because U.S. law protects businesses action on the profit
motive. Thus, when someone enters an industry with the sole intent of driving another firm out of
business, the law punishes this act as ___________
Fiduciary Rule - ANSWER-the highest legal duty and standard for ethical business conduct.
Otis Engineering Corp v. Clark - ANSWER-Matheson, employee of Otis, was drunk on the job. His boss
asked him to leave and escorted him to the parking lot. Matheson drove home and got into a wreck,
killing the wives of Larry and Clifford Clark. The Clarks sued for wrongful death, but were dismissed
because Matheson wasn't acing within the scope of his job. Court of appeals reversed. Generally, one
person is under no duty to control the conduct of another even if he has the practical ability to do so.
Yet, certain relationships do impose, as a matter of law, certain duties upon parties. When, because of
an employee's incapacity, an employer exercises control over the employee, the employer has a duty to
,2|Page
take such action to prevent the employee from causing an unreasonable risk of harm to others.
Remanded.
what is the order of the stages of the civil legal process? - ANSWER-pleading stage
discovery stage
trial stage
appellate stage
Uniform Arbitration Act (UAA) - ANSWER-Gives arbitrators the power to swear witnesses and give
subpoenas
affirmative defense - ANSWER-a defendant uses an _______ when her or his answer admits that the
facts contained in the complaint are accurate but also includes additional facts that justify the
defendant's actions and provide a legally sound reason to deny relief to the plaintiff.
Motion to dismiss - ANSWER-upon receiving the complaint, if the defendant believes that even though
all the plaintiff's factual allegations are true, the law does not entitle the plaintiff to a favorable
judgement, the defendant may file a ______________
Counterclaim - ANSWER-If the defendant believes he has a claim against the plaintiff, he includes this
_________ with his answer
mock trials - ANSWER-Jury selection firms set up __________ by recruiting individuals who match the
demographics of the real jury to listen to attorney' arguments and witnesses' testimony
Shadow jury - ANSWER-parties also often hire jury selection firms to provide _______. Like a mock trial,
a _________ uses individuals whose demographics match the demographics of a trial's real jurors.
Facts- employer sends an obviously intoxicated employee home in the middle of a shift, and the
employee is involved in a car collision killing himself and the occupants of the others car, who were
married to the plaintiffs.
, 3|Page
Presidential authority over foreign affairs - ANSWER-the president's ability to make law regarding
foreign affairs derives from the presidential power to make treaties, subject to the advice and consent
of two thirds of the senate.
Presidential authority over domestic affairs - ANSWER-the president's authority over domestic affairs is
yet another source of law. Article II if the Constitution of the U.S. provides that the president "shall take
Care that the Laws be faithfully executed."
Interaction among the various source of law - ANSWER-the various sources of law in the U.S. do not
operate in a vacuum. The three branches of government frequently interact. This interaction provides a
system of checks and balances in which the branches may aid or block each other.
Legal reasoning - ANSWER-The rest of this chapter looks at a method of thinking called legal reasoning.
Legal reasoning cannot be precisely defined. Because it is a method of reasoning, the most that can be
hoped for is a functional description of the process. Indeed, it is ironic but true that generations of law
students have been taught to "think like a lawyer" without ever having been told explicitly just what is
meant by that statement. Although the method of reasoning that underlies legal reasoning is not unique
to the legal system, we find the method most prominently displayed there. This is due in part to the
methods and doctrines developed by courts to guide their decision making. Because courts explain their
decisions in written opinions, we turn to court opinions for examples of legal reasoning
Precedent-Based Rationales - ANSWER-involve the basic question of whether an earlier decision applies
to the present case, or if it is in some significant way different from the present controversy.
Policy-Based Rationales - ANSWER-Focus on who should be making policy, rather than on the policy
issues themselves
The Lawyer's Role - ANSWER-Lawyers play many roles in relation to the business firm. They counsel the
firm's managers regarding transactions, compliance with regulations, review of contracts and a variety
of other legal matters. They draft and review legal documents. Their primary goal as counsellors and
drafters is to prevent legal problems from developing
Attorney-Client Privilege - ANSWER-The attorney-client privilege protects only the communication
between the client and the attorney. The communication must be for the purpose of obtaining legal
advice. The underlying information is not protected. A client cannot hide information just by telling it to
