Business Law & Ethics Exam 1 2023
Which of the following is true?
a. Dispute resolution is a purely technical and legal matter that should best be left to the sole discretion
of attorneys.
b. The options available to business owners in the dispute resolution process have diminished
significantly in recent years.
c. Dispute resolution requires a cost-benefit analysis.
d. All of the answer choices are correct. - ANSWER-c. Dispute resolution requires a cost-benefit analysis
The state of South Carolina passed a law charging an extra fee for out-of-state poultry processors and
demanding that their poultry be inspected before it could be sold retail in South Carolina. There was not
a similar requirement for in-state poultry. This is justified on grounds that it protects the health and
welfare of state residents. Is this law likely to be upheld by a federal court if challenged on constitutional
grounds by Braxton Poultry, a Georgia poultry processor? - ANSWER-No, the law will likely be struck
down on grounds that a state may not discriminate against or place undue burdens on interstate
commerce under the Dormant Commerce Clause.
Bart was angry at his neighbor Homer, who had been playing loud hip hop music after midnight every
night. In retaliation, Bart had been throwing eggs at Homer's house. Bart has pursued the equitable
remedy of an injunction against Homer. What is Homer's best defense to Bart's equitable action under
these circumstances? - ANSWER-Clean hands
Carnie is a plaintiff in a lawsuit based on an auto accident in which she alleges she received whiplash
when Richard hit her car. She wants to get information about what Penelope, a witness saw, before the
trial starts. Which of the following legal procedures could Carnie use to get this information from
Penelope? - ANSWER-a deposition
Darryl believed that right and wrong were established by his religious beliefs and followed the tenets of
his religion in his dealings with others. This is known as a: - ANSWER-principles-based approach
Billy's Barbecue was a small business with 20 employees in Tinyville, a town that seldom had visitors
from other states. Billy refused to serve people of Middle Eastern descent. Billy's only contact with other
states was purchasing some of his beef from a butcher in a neighboring state. May Congress regulate
,Billy's activity under the Civil Rights Act? Why/why not? - ANSWER-Yes, because Billy's is engaged in
interstate commerce under the Commerce Clause.
Rodriguez, an attorney, is planning to file a class action lawsuit on behalf of 500 people against two
corporations: Cheatco, a company that sold an allegedly defective bicycle to the 500 customers, and
Failco, a company that allegedly provided defective metal to make the frames of the bicycles. All 500
people suffered similar head injuries as a result of the alleged defects. Rodriguez is alleging the injuries
were caused by both Cheatco and Failco. Which of the following is true of this planned class action? -
ANSWER-it is a valid mass tort action
Butler was shopping at Grocerymart and slipped and broke his tailbone because an employee had
dropped a gallon of milk in the aisle. This was on October 25, 2019. The state law that requires Butler to
file his lawsuit by October 25, 2022, is known as a/an - ANSWER-statue of limitations
Aunt Betsey is sick and tired of neighbors who walk their dogs across her front yards. She is considering
going to district court to stop the trespassers. What type of remedy should she pursue? - ANSWER-
injunction
Which of the following best represents arbitration? - ANSWER-Laila is hearing and will be deciding a
matter in which an attorney will represent their corporate clients. The parties will be able to present
limited evidence before Laila.
Which of the following will not create minimum contacts in a state sufficient to find personal jurisdiction
on an out-of-state defendant? - ANSWER-Modern Pharmaceuticals maintains a website that provides
customers information about its products, as well as email addresses and phone numbers for regional
sales representatives from whom customers can purchase products.
Which of the following is true of trial courts? - ANSWER-A trial court decision is binding on the parties to
the case and no one else.
Congress is drafting a piece of legislation that legalizes marijuana. It has not yet passed both Houses of
Congress by a majority vote or been signed by the president. This is known as a: - ANSWER-Bill
Katelyn was suspended from State University after a professor suspected her of cheating on an
economics exam. The determination of whether the state government acted properly and gave her an
, opportunity to present her evidence at a fair and neutral hearing is an analysis of - ANSWER-procedural
due process
At an event on the White House lawn, the President declared that the second Tuesday of April would be
"National Be Kind to Lawyers Day." Which of the following is this declaration? - ANSWER-Ceremonial
proclamation
Janie is trying to work out the differences between the parties to a dispute and help them resolve it
within one week, but if she cannot, she then has the power to render a decision in the dispute. Which of
the following forms of alternative dispute resolution (ADR) does this most closely resemble? - ANSWER-
med-arb
Turner brought a lawsuit against her employer Discrimco. Turner had signed an employment contract
with Discrimco which contained a clause stating that all disputes between the parties were to be heard
by an arbitrator in a binding hearing. Turner's lawsuit is based on sexual and racial discrimination and she
is pursuing it under the federal Civil Rights Act. Discrimco has made a motion to dismiss the case on
grounds that the matter is subject to binding arbitration. Which of the following is correct? - ANSWER-
Discrimco is correct, Turner's lawsuit shoulld be dismissed and she must undergo binding arbitration.
Jeremy is a vice president and loan officer for Small Town Credit Union. He has an opportunity to make a
loan to a customer that he suspects will be used to fund the customer's illegal gambling operations.
However, Jeremy will make a substantial bonus from making the loan, which he will use to buy his
elderly mother a motorized wheelchair. He has defined the ethical dilemma. According to the manager's
paradigm of ethical decision making, what would be Jeremy's next logical step after defining the
dilemma? - ANSWER-identifying the impact of the decision on primary and secondary stakeholders.
Dmitri was a judge in the state of Delaware. He presided over a trial in which the plaintiff and defendant
had agreed to have him act as both finder of fact and law. This is known as a/an - ANSWER-bench trial
Which of the following is a secondary source of law?
a. A regulation passed by a federal agency
b. A model law passed as a guide to states in crafting their statutes on healthcare
c. A constitutional interpretation of a statute by a federal court of appeals
d. All of the answer choices are secondary sources of law. - ANSWER-b. a model law passed as a guide to
states in crafting their statues on healthcare
Which of the following is true?
a. Dispute resolution is a purely technical and legal matter that should best be left to the sole discretion
of attorneys.
b. The options available to business owners in the dispute resolution process have diminished
significantly in recent years.
c. Dispute resolution requires a cost-benefit analysis.
d. All of the answer choices are correct. - ANSWER-c. Dispute resolution requires a cost-benefit analysis
The state of South Carolina passed a law charging an extra fee for out-of-state poultry processors and
demanding that their poultry be inspected before it could be sold retail in South Carolina. There was not
a similar requirement for in-state poultry. This is justified on grounds that it protects the health and
welfare of state residents. Is this law likely to be upheld by a federal court if challenged on constitutional
grounds by Braxton Poultry, a Georgia poultry processor? - ANSWER-No, the law will likely be struck
down on grounds that a state may not discriminate against or place undue burdens on interstate
commerce under the Dormant Commerce Clause.
Bart was angry at his neighbor Homer, who had been playing loud hip hop music after midnight every
night. In retaliation, Bart had been throwing eggs at Homer's house. Bart has pursued the equitable
remedy of an injunction against Homer. What is Homer's best defense to Bart's equitable action under
these circumstances? - ANSWER-Clean hands
Carnie is a plaintiff in a lawsuit based on an auto accident in which she alleges she received whiplash
when Richard hit her car. She wants to get information about what Penelope, a witness saw, before the
trial starts. Which of the following legal procedures could Carnie use to get this information from
Penelope? - ANSWER-a deposition
Darryl believed that right and wrong were established by his religious beliefs and followed the tenets of
his religion in his dealings with others. This is known as a: - ANSWER-principles-based approach
Billy's Barbecue was a small business with 20 employees in Tinyville, a town that seldom had visitors
from other states. Billy refused to serve people of Middle Eastern descent. Billy's only contact with other
states was purchasing some of his beef from a butcher in a neighboring state. May Congress regulate
,Billy's activity under the Civil Rights Act? Why/why not? - ANSWER-Yes, because Billy's is engaged in
interstate commerce under the Commerce Clause.
Rodriguez, an attorney, is planning to file a class action lawsuit on behalf of 500 people against two
corporations: Cheatco, a company that sold an allegedly defective bicycle to the 500 customers, and
Failco, a company that allegedly provided defective metal to make the frames of the bicycles. All 500
people suffered similar head injuries as a result of the alleged defects. Rodriguez is alleging the injuries
were caused by both Cheatco and Failco. Which of the following is true of this planned class action? -
ANSWER-it is a valid mass tort action
Butler was shopping at Grocerymart and slipped and broke his tailbone because an employee had
dropped a gallon of milk in the aisle. This was on October 25, 2019. The state law that requires Butler to
file his lawsuit by October 25, 2022, is known as a/an - ANSWER-statue of limitations
Aunt Betsey is sick and tired of neighbors who walk their dogs across her front yards. She is considering
going to district court to stop the trespassers. What type of remedy should she pursue? - ANSWER-
injunction
Which of the following best represents arbitration? - ANSWER-Laila is hearing and will be deciding a
matter in which an attorney will represent their corporate clients. The parties will be able to present
limited evidence before Laila.
Which of the following will not create minimum contacts in a state sufficient to find personal jurisdiction
on an out-of-state defendant? - ANSWER-Modern Pharmaceuticals maintains a website that provides
customers information about its products, as well as email addresses and phone numbers for regional
sales representatives from whom customers can purchase products.
Which of the following is true of trial courts? - ANSWER-A trial court decision is binding on the parties to
the case and no one else.
Congress is drafting a piece of legislation that legalizes marijuana. It has not yet passed both Houses of
Congress by a majority vote or been signed by the president. This is known as a: - ANSWER-Bill
Katelyn was suspended from State University after a professor suspected her of cheating on an
economics exam. The determination of whether the state government acted properly and gave her an
, opportunity to present her evidence at a fair and neutral hearing is an analysis of - ANSWER-procedural
due process
At an event on the White House lawn, the President declared that the second Tuesday of April would be
"National Be Kind to Lawyers Day." Which of the following is this declaration? - ANSWER-Ceremonial
proclamation
Janie is trying to work out the differences between the parties to a dispute and help them resolve it
within one week, but if she cannot, she then has the power to render a decision in the dispute. Which of
the following forms of alternative dispute resolution (ADR) does this most closely resemble? - ANSWER-
med-arb
Turner brought a lawsuit against her employer Discrimco. Turner had signed an employment contract
with Discrimco which contained a clause stating that all disputes between the parties were to be heard
by an arbitrator in a binding hearing. Turner's lawsuit is based on sexual and racial discrimination and she
is pursuing it under the federal Civil Rights Act. Discrimco has made a motion to dismiss the case on
grounds that the matter is subject to binding arbitration. Which of the following is correct? - ANSWER-
Discrimco is correct, Turner's lawsuit shoulld be dismissed and she must undergo binding arbitration.
Jeremy is a vice president and loan officer for Small Town Credit Union. He has an opportunity to make a
loan to a customer that he suspects will be used to fund the customer's illegal gambling operations.
However, Jeremy will make a substantial bonus from making the loan, which he will use to buy his
elderly mother a motorized wheelchair. He has defined the ethical dilemma. According to the manager's
paradigm of ethical decision making, what would be Jeremy's next logical step after defining the
dilemma? - ANSWER-identifying the impact of the decision on primary and secondary stakeholders.
Dmitri was a judge in the state of Delaware. He presided over a trial in which the plaintiff and defendant
had agreed to have him act as both finder of fact and law. This is known as a/an - ANSWER-bench trial
Which of the following is a secondary source of law?
a. A regulation passed by a federal agency
b. A model law passed as a guide to states in crafting their statutes on healthcare
c. A constitutional interpretation of a statute by a federal court of appeals
d. All of the answer choices are secondary sources of law. - ANSWER-b. a model law passed as a guide to
states in crafting their statues on healthcare
