BUSINESS LAW & ETHICS
BA 300 FINAL EXAM
Romano Questions with Complete Solutions
Edition
Course: BA 300 – Business Law & Ethics
Examination: Comprehensive Final Examination
Format: 100 Multiple-Choice Questions (4 options, one correct)
Cognitive Mix: 25% Recall | 50% Application | 25% Analysis
Question Style: 75% Scenario-Based | 25% Direct Knowledge
Aligned With: AACSB Business Accreditation Standards
BA 300 Course Syllabus (2026/2027)
Faculty: Professor Romano
This examination comprises nine (9) sections covering the full breadth of the BA 300 curriculum: Legal Foundations
& Court Systems; Tort Law & Product Liability; Contract Law; Business Organizations & Corporations;
Employment Law & Agency; Consumer Protection & Antitrust; Business Ethics & Corporate Social Responsibility;
International Law & E-Commerce; and Comprehensive Case Studies & Applied Scenarios. Each question includes a
complete rationale keyed to the Romano course materials, governing statutory authority, and prevailing common-law
doctrine.
EXAMINATION BLUEPRINT
Section Topic Area Q# # Qs
Section 1 Legal Foundations & Court Systems Q1–Q12 12
Section 2 Tort Law & Product Liability Q13–Q24 12
Section 3 Contract Law Q25–Q39 15
Section 4 Business Organizations & Corporations Q40–Q51 12
BA 300 Final Exam – Romano Questions with Complete Solutions 2026/2027 Page 1
, Section 5 Employment Law & Agency Q52–Q63 12
Section 6 Consumer Protection & Antitrust Q64–Q73 10
Section 7 Business Ethics & Corporate Social Responsibility Q74–Q85 12
Section 8 International Law & E-Commerce Q86–Q93 8
Section 9 Comprehensive Case Studies & Applied Scenarios Q94–Q100 7
TOTAL Q1–Q100 100
BA 300 Final Exam – Romano Questions with Complete Solutions 2026/2027 Page 2
, SECTION 1: LEGAL FOUNDATIONS & COURT SYSTEMS
Questions Q1–Q12 · 12 questions · Sources of law, jurisdiction, court systems, ADR, constitutional law, administrative law
Q1: The body of American law derived from judicial decisions in cases rather than from statutes or
constitutions is most accurately described as:
A. Statutory law, because it is enacted by legislatures and codified in statutes.
B. Administrative law, because it is promulgated by federal and state agencies.
C. Common law, because it originates from court decisions that establish precedent binding future courts
under the doctrine of stare decisis. *[CORRECT]*
D. Constitutional law, because it derives from the U.S. Constitution and its amendments.
Correct Answer: C
Rationale: Common law is judge-made law developed through written decisions that establish binding precedent. Statutory
law (A) originates from legislatures, administrative law (B) from agencies such as the SEC or EPA, and constitutional law
(D) from the U.S. and state constitutions. The BA 300 curriculum identifies these four primary sources of law, with common
law distinguished by its evolutionary, case-by-case development.
Q2: Pacific Logistics, Inc., a Delaware corporation with its principal place of business in Seattle, Washington,
is sued by a California distributor for breach of a $750,000 supply contract. The distributor files suit in the
U.S. District Court for the Central District of California. Pacific Logistics moves to dismiss for lack of
personal jurisdiction, arguing it has no offices, warehouses, or employees in California. Which fact, if proven,
would MOST strongly support the California federal court's exercise of specific personal jurisdiction over
Pacific Logistics?
A. Pacific Logistics maintains an interactive website accessible to California residents that generates incidental
advertising revenue from the state.
B. Pacific Logistics purposefully shipped the contracted goods into California on twelve separate occasions,
negotiated the contract by phone with the California distributor, and the claim arises directly from those
contacts. *[CORRECT]*
C. Pacific Logistics is incorporated in Delaware, a state whose long-arm statute reaches all defendants consistent with
due process.
D. Pacific Logistics once attended an industry trade show in Los Angeles unrelated to the distributor or the contract at
issue.
Correct Answer: B
Rationale: Under International Shoe and its progeny, specific personal jurisdiction requires that the defendant purposefully
availed itself of the forum state's benefits and that the claim arises from those contacts. Option B satisfies all three Calder
effects test prongs: purposeful availment (repeated shipments and negotiations), relatedness (the suit arises from the same
contract), and fair play. A passive or incidental website (A) is insufficient under Zippo; mere incorporation in another state
(C) does not create California contacts; and unrelated trade-show attendance (D) fails the relatedness prong.
BA 300 Final Exam – Romano Questions with Complete Solutions 2026/2027 Page 3
, Q3: Maria Hernández files a pro se complaint in federal district court alleging that her former employer
violated Title VII of the Civil Rights Act of 1964. The defendant moves to dismiss under Federal Rule of Civil
Procedure 12(b)(1), arguing the court lacks subject matter jurisdiction because Hernández never filed a
charge with the EEOC. How should the court rule?
A. Deny the motion, because federal courts always have subject matter jurisdiction over claims arising under federal
statutes.
B. Grant the motion, because exhausting administrative remedies with the EEOC is a jurisdictional
prerequisite to filing a Title VII suit in federal court. *[CORRECT]*
C. Deny the motion, because the exhaustion requirement is an affirmative defense that the defendant waived by
moving to dismiss before answering.
D. Grant the motion, but only because Hernández is proceeding pro se and therefore cannot invoke federal
jurisdiction.
Correct Answer: B
Rationale: Filing a timely EEOC charge and receiving a right-to-sue letter is a jurisdictional prerequisite to suit under Title
VII; failure to exhaust deprives the federal court of subject matter jurisdiction under Rule 12(b)(1). Federal-question
jurisdiction under 28 U.S.C. § 1331 (A) does not override statutory exhaustion requirements. Exhaustion is not a waivable
affirmative defense (C); it goes to the court's power to hear the case. Pro se status (D) is irrelevant to jurisdiction.
Q4: GreenFuture, an environmental nonprofit, sues the U.S. Environmental Protection Agency in federal
court, seeking an injunction compelling the agency to issue a new rule limiting carbon emissions from existing
power plants. GreenFuture alleges that the agency has unreasonably delayed rulemaking for five years. To
establish Article III standing, GreenFuture must demonstrate:
A. That its members have suffered or will imminently suffer a concrete and particularized injury that is fairly
traceable to the agency's inaction and likely redressable by a favorable judicial decision. *[CORRECT]*
B. That the agency's delay violates the Administrative Procedure Act and that the organization has taxpayer standing
as a federal taxpayer.
C. That the public interest favors judicial intervention and that the organization has maintained a sustained advocacy
campaign on the issue.
D. That the president has authorized the suit and that the alleged injury affects the organization's general mission.
Correct Answer: A
Rationale: Article III standing under Lujan requires the plaintiff to show injury-in-fact (concrete and particularized),
causation (fairly traceable to the defendant), and redressability. An association may sue on behalf of its members under Hunt
v. Washington State Apple Advertising Commission. Generalized grievances (B, C) and taxpayer standing (B) are barred by
Frothingham v. Mellon and Flast v. Cohen. Presidential authorization (D) is not a standing requirement.
BA 300 Final Exam – Romano Questions with Complete Solutions 2026/2027 Page 4
BA 300 FINAL EXAM
Romano Questions with Complete Solutions
Edition
Course: BA 300 – Business Law & Ethics
Examination: Comprehensive Final Examination
Format: 100 Multiple-Choice Questions (4 options, one correct)
Cognitive Mix: 25% Recall | 50% Application | 25% Analysis
Question Style: 75% Scenario-Based | 25% Direct Knowledge
Aligned With: AACSB Business Accreditation Standards
BA 300 Course Syllabus (2026/2027)
Faculty: Professor Romano
This examination comprises nine (9) sections covering the full breadth of the BA 300 curriculum: Legal Foundations
& Court Systems; Tort Law & Product Liability; Contract Law; Business Organizations & Corporations;
Employment Law & Agency; Consumer Protection & Antitrust; Business Ethics & Corporate Social Responsibility;
International Law & E-Commerce; and Comprehensive Case Studies & Applied Scenarios. Each question includes a
complete rationale keyed to the Romano course materials, governing statutory authority, and prevailing common-law
doctrine.
EXAMINATION BLUEPRINT
Section Topic Area Q# # Qs
Section 1 Legal Foundations & Court Systems Q1–Q12 12
Section 2 Tort Law & Product Liability Q13–Q24 12
Section 3 Contract Law Q25–Q39 15
Section 4 Business Organizations & Corporations Q40–Q51 12
BA 300 Final Exam – Romano Questions with Complete Solutions 2026/2027 Page 1
, Section 5 Employment Law & Agency Q52–Q63 12
Section 6 Consumer Protection & Antitrust Q64–Q73 10
Section 7 Business Ethics & Corporate Social Responsibility Q74–Q85 12
Section 8 International Law & E-Commerce Q86–Q93 8
Section 9 Comprehensive Case Studies & Applied Scenarios Q94–Q100 7
TOTAL Q1–Q100 100
BA 300 Final Exam – Romano Questions with Complete Solutions 2026/2027 Page 2
, SECTION 1: LEGAL FOUNDATIONS & COURT SYSTEMS
Questions Q1–Q12 · 12 questions · Sources of law, jurisdiction, court systems, ADR, constitutional law, administrative law
Q1: The body of American law derived from judicial decisions in cases rather than from statutes or
constitutions is most accurately described as:
A. Statutory law, because it is enacted by legislatures and codified in statutes.
B. Administrative law, because it is promulgated by federal and state agencies.
C. Common law, because it originates from court decisions that establish precedent binding future courts
under the doctrine of stare decisis. *[CORRECT]*
D. Constitutional law, because it derives from the U.S. Constitution and its amendments.
Correct Answer: C
Rationale: Common law is judge-made law developed through written decisions that establish binding precedent. Statutory
law (A) originates from legislatures, administrative law (B) from agencies such as the SEC or EPA, and constitutional law
(D) from the U.S. and state constitutions. The BA 300 curriculum identifies these four primary sources of law, with common
law distinguished by its evolutionary, case-by-case development.
Q2: Pacific Logistics, Inc., a Delaware corporation with its principal place of business in Seattle, Washington,
is sued by a California distributor for breach of a $750,000 supply contract. The distributor files suit in the
U.S. District Court for the Central District of California. Pacific Logistics moves to dismiss for lack of
personal jurisdiction, arguing it has no offices, warehouses, or employees in California. Which fact, if proven,
would MOST strongly support the California federal court's exercise of specific personal jurisdiction over
Pacific Logistics?
A. Pacific Logistics maintains an interactive website accessible to California residents that generates incidental
advertising revenue from the state.
B. Pacific Logistics purposefully shipped the contracted goods into California on twelve separate occasions,
negotiated the contract by phone with the California distributor, and the claim arises directly from those
contacts. *[CORRECT]*
C. Pacific Logistics is incorporated in Delaware, a state whose long-arm statute reaches all defendants consistent with
due process.
D. Pacific Logistics once attended an industry trade show in Los Angeles unrelated to the distributor or the contract at
issue.
Correct Answer: B
Rationale: Under International Shoe and its progeny, specific personal jurisdiction requires that the defendant purposefully
availed itself of the forum state's benefits and that the claim arises from those contacts. Option B satisfies all three Calder
effects test prongs: purposeful availment (repeated shipments and negotiations), relatedness (the suit arises from the same
contract), and fair play. A passive or incidental website (A) is insufficient under Zippo; mere incorporation in another state
(C) does not create California contacts; and unrelated trade-show attendance (D) fails the relatedness prong.
BA 300 Final Exam – Romano Questions with Complete Solutions 2026/2027 Page 3
, Q3: Maria Hernández files a pro se complaint in federal district court alleging that her former employer
violated Title VII of the Civil Rights Act of 1964. The defendant moves to dismiss under Federal Rule of Civil
Procedure 12(b)(1), arguing the court lacks subject matter jurisdiction because Hernández never filed a
charge with the EEOC. How should the court rule?
A. Deny the motion, because federal courts always have subject matter jurisdiction over claims arising under federal
statutes.
B. Grant the motion, because exhausting administrative remedies with the EEOC is a jurisdictional
prerequisite to filing a Title VII suit in federal court. *[CORRECT]*
C. Deny the motion, because the exhaustion requirement is an affirmative defense that the defendant waived by
moving to dismiss before answering.
D. Grant the motion, but only because Hernández is proceeding pro se and therefore cannot invoke federal
jurisdiction.
Correct Answer: B
Rationale: Filing a timely EEOC charge and receiving a right-to-sue letter is a jurisdictional prerequisite to suit under Title
VII; failure to exhaust deprives the federal court of subject matter jurisdiction under Rule 12(b)(1). Federal-question
jurisdiction under 28 U.S.C. § 1331 (A) does not override statutory exhaustion requirements. Exhaustion is not a waivable
affirmative defense (C); it goes to the court's power to hear the case. Pro se status (D) is irrelevant to jurisdiction.
Q4: GreenFuture, an environmental nonprofit, sues the U.S. Environmental Protection Agency in federal
court, seeking an injunction compelling the agency to issue a new rule limiting carbon emissions from existing
power plants. GreenFuture alleges that the agency has unreasonably delayed rulemaking for five years. To
establish Article III standing, GreenFuture must demonstrate:
A. That its members have suffered or will imminently suffer a concrete and particularized injury that is fairly
traceable to the agency's inaction and likely redressable by a favorable judicial decision. *[CORRECT]*
B. That the agency's delay violates the Administrative Procedure Act and that the organization has taxpayer standing
as a federal taxpayer.
C. That the public interest favors judicial intervention and that the organization has maintained a sustained advocacy
campaign on the issue.
D. That the president has authorized the suit and that the alleged injury affects the organization's general mission.
Correct Answer: A
Rationale: Article III standing under Lujan requires the plaintiff to show injury-in-fact (concrete and particularized),
causation (fairly traceable to the defendant), and redressability. An association may sue on behalf of its members under Hunt
v. Washington State Apple Advertising Commission. Generalized grievances (B, C) and taxpayer standing (B) are barred by
Frothingham v. Mellon and Flast v. Cohen. Presidential authorization (D) is not a standing requirement.
BA 300 Final Exam – Romano Questions with Complete Solutions 2026/2027 Page 4
