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The Legal EnvironmentWeek 4 Midterm1. Question : (TCO 2) The company management/policy view that believes shareholder profits are the top priority is Student Answer: the profit maximization model. the long-term company interest model. the triple bottom line/sustainability model. All of the aboveQuestion 2. Question : (TCO 3) A 2007 Harris Poll of 2,400 Americans found that, for 16% of those polled, a company's reputation for social responsibility Student Answer: has a strong impact on purchase decisions. does not have a strong impact on purchase decisions. has no impact whatsoever on purchase decisions. is not an element in purchasing decision making.Question 3. Question : (TCO 4) Subject matter jurisdiction refers to Student Answer: standing. authority over the person of the defendant. the class of case a court may hear. class action certification.Question 4. Question : (TCO 5) Public law Student Answer: relates to legal relationships between individuals. relates to legal relationships between government and citizens. creates, defines, and regulates legal rights and obligations. consists of the rules by which the judicial system operates.Question 5. Question : (TCO 6) The business entity that affords maximum control is Student Answer: a partnership. a corporation. a sole proprietorship. All of the aboveQuestion 6. Question : (TCO 5) In contract law, consideration means Student Answer: bargained for legal value of the agreement. that the party is of legal age. that there has been a meeting of the minds. that the object of the contract does not violate the law.Question 7. Question : (TCO 5) In contract law, which of the following is not true with respect to consideration? Student Answer: Can only be in money-actual dollars and cents a Reciprocal promise that is worth money (I will mow your lawn if you will wash my car) Giving up something of value Refraining from doing something one has a legal right to doQuestion 8. Question : (TCO 3) Negligence is based on Student Answer: accidental harm. voluntary acts. inherent risk. willfulness. Question 9. Question : (TCO 3) The test of negligence includes which of the following? Student Answer: Duty owed by the Defendant to the Plaintiff Defendant fails to fulfill the duty of care There is harm to the plaintiff as a result of defendant's negligence All of the aboveQuestion 10. Question : (TCO 2) Federal guidelines, issued by the U.S. Sentencing Commission, for white-collar crime sentences rely on Student Answer: income level of the defendant. age and sex of the defendant. offense level and criminal history of the defendant. educational background of the defendant.Question 11. Question : (TCO 1) Is First Amendment free speech protection only afforded to the spoken word? Explain.Question 12. Question : (TCO 2) The 2007 PwC Report suggested three things companies could do to minimize accounting fraud. Discuss these suggestions.Question 13. Question : (TCO 3) Customers who feel a product is not operating as promised may claim a breach of warranty. Define the term warranty, and explain how it operates to help the customer.Question 14. Question : (TCO 5) Explain the circumstances under which a person who is not a party to a contract might nevertheless have a legal interest in the contract.Question 15. Question : (TCO 6) Define the two default forms of business organization.Question 16. Question : (TCO 1) Explain the effect of the due process clauses of the Fifth and 14th Amendments to the United States Constitution.Question 17. Question : (TCO 1) The structure of the Constitution sets up a means to control the balance of powers of the federal government. Define the powers of each branch and explain how they act as checks and balances on each other.Question 18. Question : (TCO 3) Explain strict liability in the context of product liability. What led to the acceptance of this concept as a cause of action?
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