Sophia Business Law Exam Questions With Verified Answers

Which statement accurately characterizes the constitutional relationship between the states and the federal government? · The U.S. Constitution protects individual rights, whereas state constitutions do not. · The U.S. Constitution gives the federal government jurisdiction over any areas that state constitutions do not expressly reserve to themselves. · State laws cannot conflict with federal laws or with the U.S. Constitution. · State laws must always be respected by the U.S. Congress. - Answer State laws cannot conflict with federal laws or with the U.S. Constitution. Select the true statement about primary sources of law in the U.S. - Answer A. Banning cigarette sales to minors is an example of private law. B. Speed limits are an example of substantive law. C. Racial discrimination in hiring is a concern of procedural law. D. How a lawyer is required to file papers in a civil case is a concern of substantive law. B is correct Select the true statement about common law. - Answer A.Common law is binding regardless of jurisdiction. B. In a common-law system, attorneys do not need to use legal reasoning to argue their case. C. Common law is highly malleable, because precedents are often overturned. D. Rules of law are shaped by the courts through the practice of stare decisis. D is correct Which level of state court has the right to select which cases it wishes to hear? · Intermediate appellate court · Supreme court · General jurisdiction court · Limited jurisdiction court - Answer Supreme Court Select the true statement about the relationship between law, ethics, and business. · What is ethical in business is not necessarily required by law. · It is impossible for a business to behave unethically if it follows the law. · The law ensures ethical conduct in most areas of business. · Abiding by the law is sufficient for businesses to earn a moral reputation. - Answer What is ethical in business is not necessarily required by law ABC Corporation is one of the largest energy companies in the United States, with over $50 million in publicly traded shares. The corporation's unusual accounting practices have disguised the fact that the company has accumulated significant losses over the past five years, making it appear far more profitable than it is. The CEO of ABC Corporation has decided to continue misleading investors by hiding its mounting debt in order to support the company's current market valuation.How would a deontologist evaluate this decision? · ABC Corporation is acting unethically because it is not striving for truthfulness or high-mindedness. · ABC Corporation is acting unethically because the results of its dishonesty are likely to be negative for its employees, for its shareholders, and for society as a whole. · ABC Corporation is acting unethically because it sees the investors' interests as unequal to the interests of the CEO and the corporation. · ABC Corporation is acting unethically because it has certain rights as a corporation, and therefore has a corresponding duty to consider the public good. - Answer ABC Corporation is acting unethically because it sees the investors' interests as unequal to the interests of the CEO and the corporation. Which of the following is a belief held by the theory of natural law? · Humans require laws issued by sovereigns to distinguish right from wrong. · Laws must be enforced even if they are considered "bad." · There is no higher law than human-made law. · There are rights that are intrinsic to humankind. - Answer There are rights that are intrinsic to humankind The new CEO of a large coffee corporation makes fighting sexual harassment a cornerstone of the company's culture after a series of embarrassing incidents involving several of the company's managers are leaked to the media. The corporation drafts a new code of ethics with an expanded set of policies related to sexual harassment, creates a series of mandatory workshops for its workforce, and fires the managers involved in the incidents.Consider what you have learned about the factors that impact corporate culture. What is the ethical strength of the corporation in the example? · Weak, because the CEO should have cracked down on the employees who were leaking information to the media as well. · Strong, because the corporation must show that it has an ongoing process to discourage wrongdoing in order to avoid legal action.