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The Legal Environment Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Page 1

Question 1 1. What protects confidential communications between a client and his or her lawyer?

Question 2 2. Which of the following is an argument AGAINST corporate social responsibility?

Question 3 3.

Ben & Jerry's, who pride themselves in supporting charities. Ben & Jerry's have been donating a full 7.5% of pretax profits to different charitable institutions.

Ben & Jerry's is concerned with:

Question 4 4. One difference between a common shareholder and a preferred shareholder is:

Question 5 5. Manny found a stranger's blank check and decided to make it out to himself in the amount of $500.00. He then signed it with the stranger's name and went to the bank. When the owner of the check found out, he called the police. What can Manny be charged with?

Page 2

Question 6 6. If an employee is given the latitude to access bank accounts, it may be tempting to snag a few frog-skins. Transferring large sums of money from the corporate savings account into your personal account without permission is _.

Question 7 7. When a business owner engages in certain illegal activities, the RICO Act applies when...

Question 8 8. Sara was thinking about adding sugar to her 'low calorie' ice cream bars. She figured if people really think they are as good as the original ice cream, she would have more customers. What model would be best for her?

Question 9 9. Joe considers speed limits on highways a stupid rule, and he breaks them as often as possible. Which ethical decision rule should he be asking himself ?

Question 10 10. One who believes that people are relational beings and require care is a(n) _____.

Page 3

Question 11 11. Buying a new facility or new equipment is what type of decision?

Question 12 12. Barney wanted to sell his necklace for $100.00. Sally wanted to buy a gold necklace for her boyfriend's birthday. They met to discuss the deal. Barney knew the chain was a fake, but he needed the money, so he convinced Sally that the chain was made of 14 carat gold. When she had it appraised at the jewelry store, it turned out to be made of ordinary metal painted to look like gold. What is Barney guilty of?

Question 13 13. Cathy hires Linda to be her lawyer. Cathy was sued for illegally firing several employees. Cathy makes handwritten notes for Linda outlining the reasons why she fired each employee. The attorney for the employees demands a copy of the notes. Linda does not hand them over, demonstrating _____.

Question 14 14. Cathy hires Linda to be her lawyer. Cathy has money she would like to invest and is looking for a worthy company. Linda recommends ABC Company. Linda owns ABC Company, but does not share that information with Cathy. Cathy invests a considerable amount of money in ABC Company. This is an example of:

Question 15 15. XYZ Company has just issued notices they are taking on debt for expansion. This type of decision is a:

Page 4

Question 16 16. All of the following are steps in the notice and comment informal rulemaking process, EXCEPT:

Question 17 17. If an employee who imbibes a few Long Island Ice Teas on his delivery route gets into an accident, the employer will be liable for any damages, injury or death that results from his employee's actions. This is true even if the employer did not know that his employee was drinking on the job. This is known as:

Question 18 18.

If an unscrupulous doctor bills a government-issued insurance plan, like Medicaid, for services he did not perform on a patient, he is committing a crime. The important element in an insurance fraud case is intent. The doctor must know the information is false yet continue billing the company.

The doctor is in violation of:

Question 19 19. Dan McCormick, VP of Accounting, knew that if the numbers looked good, he'd get a big bonus at the end of the year. So, he made a few adjustments in his favor and submitted the financial records to the company owner. What act is McCormick violating?

Question 20 20. The executive branch of the government includes _____.

Page 5

Question 21 21. Which of the following BEST explains the stakeholder theory?

Question 22 22.

Suppose you work for a pharmaceutical company that was working on a cure for cancer. In the course of your day, you receive an email unintended for your eyes that reads, 'Cure for Cancer to be Announced Tomorrow.' Armed with this information, you quickly get under your desk and begin secretly calling friends and family, urging them to buy stock in your company immediately

This is known as:

Question 23 23. Which of the following is an argument FOR corporate social responsibility?

Question 24 24. The mission of the Environmental Protection Agency is:

Question 25 25. People who believe that the death penalty should always be enforced even though some innocent people are executed might be described as having a point of view.

Page 6

Question 26 26. Cathy hires Linda to be her lawyer. Cathy is facing several drug charges, and Linda will defend her in court. During one of their conversations to prepare for court, Cathy asks Linda for advice on how to destroy evidence and launder her profits by funneling them through a legitimate laundromat business that one of her family members owns. This information is NOT protected by _____.

Question 27 27. One benefit of having administrative agencies is:

Question 28 28. Merely making decisions based on what ought to be done to benefit the maximum amount of people is known as:

Question 29 29. One who relies on cultural norms is:

Question 30 30. Which act regulates hazardous waste?

The Legal Environment Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!