LEG 500 Final Exam Answers

LEG 500 Final Exam Answers

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Question 1

Which of the following statements is INCORRECT regarding the rights of shareholders?

1) voting power on major issues and ownership in a portion of the company

2) right to transfer ownership and dividend entitlement


3) hire and fire management and select and appoint a chief executive

Question 2


Assuming a business ethical dilemma, which statement best illustrates Gilligan approach suggested in her theory of “The Ethics of Care”?

Correct Answer: care and responsibility to others

Question 3


Corporate director or officer decisions to dedicate corporate funds for social causes is called:

Question 4


The Ethic of Care is Answer

Question 5


According to Citizens United v. Federal Election Commission, which of the following is not a reason to allow corporations the right to spend money and advertise for political candidates?

Question 6


To determine whether a public employee receives First Amendment protection from speech (and therefore cannot be fired for it), the Supreme Court has stated that all of the following are important except:

Question 7


In the essay, Work Matters, by law professor Marion Crain, all of the following are the result of working except:

Question 8


Select the best definition of whistleblower:

Correct Answer:
 people who report unethical or illegal activities under the control of their employers

Question 9


Exceptions to the rule of employment‐at‐will include which of the following?

1) organization of unions

2) passage of Sarbanes Oxley Act


3) raising of public policy issues


4) promise of implied‐contract or covenant‐of‐good‐faith

Correct Answers: 1) 2) 3) 4) All are correct

Question 10

Under the legal doctrine of “employment at will” an employee can be lawfully terminated from her job for:

1) wearing a shirt that clashes with her suit

2) any non‐discriminatory reason


3) complaining about illegal activity in the workplace

4) only for good cause

Question 11

In considering the legality of employer interception of employee e‐mails at work, pick the correct statement.

1) Employees have complete expectation of privacy since they can select their password for in‐house and remote access of e‐mails.


2) A subpoena is required by the employer to read any e‐mail that is clearly marked “confidential” by the employee.

3) No expectation of privacy exists over an employer‐owned computer system at work.

4) Statement by the employer that e‐mails are confidential and privileged cannot be later used by an employer to defeat an employee’s claim of privacy

Question 12

One reason employers use to justify giving honesty or integrity tests is:

Question 13

The United States Constitution, Fourth Amendment provides "[t]he right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated... " Privacy rights are triggered under the Fourth Amendment:

Question 14

The most recent major privacy law passed by Congress was the

Question 15

The Electronic Communications Privacy Act of 1986 (ECPA):

Question 16

John Smith was assaulted on the loading dock by a coworker, Jim Jones, at the Acme Widget Company. The attack was unprovoked by Smith. After the physical assault, there was an angry verbal exchange between the parties. The incident ended when Jones yelled that Smith was a “sissy” and “everybody knows you're queer as a three dollar bill." Which of the following statements best describes the outcome of the harassment lawsuit filed by Smith under The Civil Right Act of 1964?

I. Sex discrimination is prohibited by federal law (The Civil Right Act of 1964).


II. Sexual orientation discrimination is prohibited by federal law (The Civil Right Act of 1964).


III. Suits based on harassment due to sexual orientation cannot prevail when based on local or state laws.


IV. Sexual orientation discrimination is not prohibited by federal law (Title VII).

Question 17

A mayor serving in a major metropolitan area receives an internal memorandum indicating personnel at many police stations are single‐race. At the time of the report, thirty percent of the police force was black or Hispanic. She immediately calls a press conference and orders transfer of police officers to achieve racial balance across the city. The transferred police offers sue on constitutional grounds. Assuming just these facts, what is the strongest argument that might be advanced by the transferred officers based on constitutional grounds?

Question 18

To establish a prima facie case of religious discrimination, the employee has to show all of the following except which one:

Question 19

All of the following are true statements regarding the Family and Medical Leave Act (FMLA, 29 U.S.C. §§ 2601, et seq.), EXCEPT which of the following?

Question 20.

Employment practices without business justification applied to all employees that result in a less favorable effect for one group than for another group may state a claim for:

Question 21

When an employee is injured on the job, that employee may:


I. File a worker’s compensation claim and accept the government‐determined value for the injury.

II. File a tort claim in state court to recover damages above the worker’s compensation amount.


III. File a complaint with OSHA to have the employer investigated and charged if violations are present.

Question 22

Employers have __________ been held criminally responsible for workplace injuries and deaths to workers.

Question 23

Typically individual stockholders are not held responsible for the actions of a corporation. Exceptions usually relate to comingling of funds, underinsuring, or similar actions by the corporate leadership. This is called:

Question 24

With the adoption of the ____________, the U.S. began to address the need to prevent, or minimize, workplace accidents and health hazards.

Question 25

One example of modern day slavery, as discussed in the interview with Kevin Bales, is:

Question 26

Under the ___________ plan, the EPA auctions a set number of sulfur dioxide emission allowances annually, with each allowance permitting one ton of emissions.

Question 27

The power of the U.S. Government to take property from a private individual and use it for public purposes is:

Question 28

According to MIT professor Layzer, the lobbyists for the energy corporations have used which of the following tactics to avoid stricter regulation?

1) Portray the science of global warming as uncertain and debatable

2) Focus on the financial costs of regulation


3) Provide Senators and Representatives with financial incentives to vote against regulation

4) Portray the environmentalists as extremists and a vocal minority.

Question 29

Which piece of legislation was passed first?

Question 30

When environmentalists recognized that politicians were not going to pass stricter legislation and regulations, they changed their tactics to force change. According to the Layzer article in the chapter, these new tactics included:

1) Eco‐terrorism – bombing pipelines and factories

2) Collaboration with businesses – create partnerships to improve environmental impacts.

3) Public relations campaigns – go public with their accusations and encourage consumers to demand change

4) Work internally through shareholders to try to change corporate disclosures

Question 31

According to John Kenneth Galbraith, the theory of consumer demand is based on the following broad assumption(s):

1) Socialism will work in all societies because consumers are willing to share their wealth.

2) The urgency of wants does not diminish as more of them are satisfied.

3) Wants originate in the personality of the consumer.

Question 32

Identify the true statement(s) regarding freedom of speech:


I. It was not until the 1920s that legal doctrines protecting speech when offensive began to be recognized by the courts.


II. In the First National Bank v. Bellotti case, the Supreme Court struck down a state law prohibiting a corporation to advertise to influence voters on issues that did not “materially affect” its business.


III. In the Virginia Board case, the U.S. Supreme Court failed to link the “right to receive information and ideas” with the traditional values that underlie free speech.


IV. The Prescription Information Law expressly allows the transmission or use of both patient‐identifiable data and prescriber‐identifiable data for certain commercial purposes.

Question 33

Obesity in children has continued to rise since 1976 and approximately _____ of all teens and youth are overweight.

Question 34

Of product promotion techniques, which is the most influential according to author Naomi Klein?

Question 35

The “creative revolution” in advertising refers to Answer

Correct Answer:The move from showing what a product can do to making the product a status symbol