TEST BANK
Applied Law and Ethics in Health Care
Wendy Mia Pardew
1st Edition
,Table of Contents
Chapter 01 The Big Business of Health Care and You 1
Chapter 02 Laws and Regulations You Will Encounter 10
Chapter 03 From the Constitution to the Courtroom 19
Chapter 04 Criminal Acts and Intentional Torts 27
Chapter 05 What Makes a Contract 36
Chapter 06 Medical Malpractice and Other Lawsuits 45
Chapter 07 The Health Record 54
Chapter 08 Introduction to Ethics 63
Chapter 09 Laws and Ethics of Patient Confidentiality 72
Chapter 10 Professional Ethics and the Living 81
Chapter 11 Reproductive Issues and Early Life 91
Chapter 12 Death and Dying 99
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Test Bank - Applied Law and Ethics in Health Care, 1st Edition (Pardew, 2023)
Chapter 01 The Big Business of Health Care and You
True / False
1. In addition to protecting patients, laws also operate to protect the public.
a. True
b. False
ANSWER: True
RATIONALE: Laws operate to protect patients and the public.
LEARNING OBJECTIVES: ALEH.PARD.23.01.06 - Summarize laws and standards that protect patients.
2. Physicians are not vicariously liable for the behavior of their employees.
a. True
b. False
ANSWER: False
RATIONALE: Physicians are vicariously liable for the behavior of persons in their employ.
LEARNING OBJECTIVES: ALEH.PARD.23.01.04 - Summarize what is meant by personal protection and
provider protection.
3. Most medical office employees are not licensed to practice medicine.
a. True
b. False
ANSWER: True
RATIONALE: Most medical office employees are not licensed to practice medicine.
LEARNING OBJECTIVES: ALEH.PARD.23.01.03 - Identify proper protocol when a health care professional is
asked to perform a task outside the scope of practice.
4. Dividends are the net worth of a corporation.
a. True
b. False
ANSWER: False
RATIONALE: Dividends are distributed profits of a corporation.
LEARNING OBJECTIVES: ALEH.PARD.23.01.07 - Identify the different types of legal entities.
5. In managed care, the actual care a patient receives is influenced by the policies and procedures of the managed care
plan.
a. True
b. False
ANSWER: True
RATIONALE: The actual care a patient receives is influenced by the policies and procedures of the
managed care plan.
LEARNING OBJECTIVES: ALEH.PARD.23.01.08 - List the main types of managed care organizations.
Multiple Choice
6. If you are not certain that an assigned task is within your scope of practice, what should you do?
a. Leave the position and seek a job that does not stretch professional boundaries.
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b. Contact regulatory authorities.
c. Tell the provider that you are not prepared or skilled to do the task.
d. Raise the concern with the employer and discuss until it is resolved.
ANSWER: d
RATIONALE: You may be asked to carry out duties that are near the boundaries of your scope of
practice. Any time you’re unsure, you have the right to raise the concern with the
employer. The employer should be open to discussing, explaining, training, and supporting
you in your job duties. Therefore, any time you have a concern about your duties, the
employer should be willing to discuss the situation until it is resolved.
LEARNING OBJECTIVES: ALEH.PARD.23.01.03 - Identify proper protocol when a health care professional is
asked to perform a task outside the scope of practice.
7. The standard of care for a certified health care professional is ________________________.
a. highly developed and dictated by the state
b. not as well defined as it is for licensed professionals
c. based on the employer’s definition
d. dependent on the employee’s ethical preference
ANSWER: b
RATIONALE: The licensed health care provider has established guidelines on standards of care usually
set and maintained by their professional society. The certified health care professional
works as an agent for the provider and is held to the standard of care associated with the
task as if it were performed by a licensed provider. Therefore, the standards of care are not
as specifically defined.
LEARNING OBJECTIVES: ALEH.PARD.23.01.05 - Compare standard of care for medical assistants and for
different health care professionals.
8. Which is a legal business entity?
a. Stockholder
b. Partnership
c. Agent
d. Conglomerate
ANSWER: b
RATIONALE: A partnership is a legal business entity.
LEARNING OBJECTIVES: ALEH.PARD.23.01.07 - Identify the different types of legal entities.
9. Identify the true statement about sole proprietorships.
a. It is a two-person entity.
b. The sole proprietor does not have to pay taxes.
c. The sole proprietor benefits from profits.
d. The sole proprietor cannot hire employees.
ANSWER: c
RATIONALE: A sole proprietorship is an individual who owns the business and all the profits and losses
of that business. This business entity may hire employees. The sole proprietors have tax
responsibility.
LEARNING OBJECTIVES: ALEH.PARD.23.01.07 - Identify the different types of legal entities.
10. Which of the following statements is true?
a. A medical assistant is held to a lower standard of care than is a layperson.
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b. A medical assistant is held to the reasonable person standard.
c. A medical assistant, working as an agent under the physician’s direction, may be held to the same standard of
care as a physician.
d. A medical assistant is only held to the same standard of care as a physician when dispensing medical advice.
ANSWER: c
RATIONALE: When a physician allows a medical assistant to perform certain functions, the delegation of
responsibility is based on the premise that the assistant can perform the functions as well as
the doctor or as well as the nurse, if the procedure is usually performed by a nurse. It also
follows that the assistant may be held to the same standard of care as the doctor or nurse.
Medical assistants may never practice medicine; only licensed individuals such as
physicians may practice medicine.
LEARNING OBJECTIVES: ALEH.PARD.23.01.05 - Compare standard of care for medical assistants and for
different health care professionals.
11. Personal protection means:
a. protecting yourself from needless co-worker criticism
b. protecting the facility from loss of revenue
c. protecting yourself from loss of earning power
d. protecting the provider from loss of reputation
ANSWER: c
RATIONALE: By understanding basic principles of the law, you can protect yourself from needless
litigation and loss of reputation, personal wealth, or earning power.
LEARNING OBJECTIVES: ALEH.PARD.23.01.04 - Summarize what is meant by personal protection and
provider protection.
12. Licensure laws:
a. protect physicians and medical office staff.
b. protect the public and serve patients’ interests.
c. are set by the federal government.
d. signify exceptional qualifications for the occupation.
ANSWER: b
RATIONALE: Licensure laws, enacted to protect the public, serve patients’ interests by defining the
education and experience required to perform certain procedures. Licenses are granted by
state licensing boards that also have the power to revoke the licenses. A license provides
proof of minimum qualifications to perform the occupation’s duties.
LEARNING OBJECTIVES: ALEH.PARD.23.01.02 - Differentiate among registration, certification, and
licensure for heath care providers.
13. Why is it important for medical assistants to understand and work within the parameters of the laws that apply to a
medical office?
a. Doing so protects themselves and their employer.
b. Doing so protects the patient.
c. Doing so protects the physician.
d. Doing so protects the pharmacist and the physician.
ANSWER: a
RATIONALE: The best answer is: Understanding and working within the parameters of the law protects
themselves and their employer. Ultimately, it protects, and benefits all involved, including
the patient.
LEARNING OBJECTIVES: ALEH.PARD.23.01.04 - Summarize what is meant by personal protection and
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provider protection.
14. In today’s medical office, the certified health care professional is permitted to do which of the following?
a. Act independently to care for patients
b. Communicate directly with patients
c. Give medical advice
d. Diagnose and treat patients
ANSWER: b
RATIONALE: Certified health care professionals do communicate directly with patients as frontline
members of the health care team.
LEARNING OBJECTIVES: ALEH.PARD.23.01.03 - Identify proper protocol when a health care professional is
asked to perform a task outside the scope of practice.
15. Which of the following is a type of legal entity in which one person operates a business for profit and has unlimited
personal liability for the business?
a. solo practice
b. sole proprietorship
c. conglomerate
d. limited liability company
ANSWER: b
RATIONALE: Sole Proprietors can have solo practices; this means only one provider is working in the
business entity. However, the owner of a solo practice may choose to operate the business
in any of the entities covered in the text.
LEARNING OBJECTIVES: ALEH.PARD.23.01.07 - Identify the different types of legal entities.
16. A Patient Bill of Rights offered by many hospitals and other health care facilities are:
a. always required by law.
b. standard among all health care facilities.
c. may differ for each health care facility.
d. required by law in all federal facilities.
ANSWER: c
RATIONALE: A Patient Bill of Rights is a listing of ethical statements for patient protection including the
right to consent to treatment. It is not required by law on the federal level or on all state
levels. Health care facilities may adopt their own Patient Bill of Rights.
LEARNING OBJECTIVES: ALEH.PARD.23.01.06 - Summarize laws and standards that protect patients.
17. Which is true about a Limited Liability Company (LLC)?
a. An LLC’s ground rules are decided by the government.
b. An LLC is owned by a single individual who wants full responsibility for profit and losses.
c. An LLC can be owned by an individual or group.
d. An LLC does not require tax reporting.
ANSWER: c
RATIONALE: An LLC is owned by an individual or group. One of the benefits of the LLC is that the
owner does not have full responsibility for loss.
LEARNING OBJECTIVES: ALEH.PARD.23.01.07 - Identify the different types of legal entities.
18. Most medical office professionals are not licensed to practice medicine and __________.
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Test Bank - Applied Law and Ethics in Health Care, 1st Edition (Pardew, 2023)
a. must do anything required to assist the patient
b. must carry out their responsibilities without making medical decisions or acting outside the areas of their
expertise
c. may sometimes dispense medical advice
d. must carry out their responsibilities without making medical decisions or acting outside the areas of their
expertise and may sometimes dispense medical advice
ANSWER: b
RATIONALE: Most medical office professionals are not licensed to practice medicine and must carry out
their responsibilities without making medical decisions or acting outside the areas of their
expertise.
LEARNING OBJECTIVES: ALEH.PARD.23.01.02 - Differentiate among registration, certification, and
licensure for heath care providers.
19. Locum tenens means:
a. a physician or other professional who is temporarily performing the duties of another.
b. a certification.
c. a legal action pursuant to federal law.
d. scope of practice.
ANSWER: a
RATIONALE: Locum tenens means a physician or other professional who is temporarily performing the
duties of another.
LEARNING OBJECTIVES: ALEH.PARD.23.01.00 - Keywords and definitions
20. A Patient Bill of Rights:
a. provides billing information related to current treatment.
b. acknowledges a patient’s right to choose, consent to, and to refuse treatment.
c. explains legal and ethical rights.
d. explains legal and ethical rights, and acknowledges a patient’s right to choose, consent to, and to refuse
treatment.
ANSWER: d
RATIONALE: A Patient Bill of Rights explains legal and ethical rights and acknowledges a patient’s right
to choose, consent to, and to refuse treatment.
LEARNING OBJECTIVES: ALEH.PARD.23.01.06 - Summarize laws and standards that protect patients.
21. Which is a feature of the Affordable Care Act (ACA)?
a. Health plans must cover preventive care.
b. The No Surprises Act is part of ACA
c. Eliminates coverage for pre-existing conditions.
d. Eliminates standards for health insurance plans.
ANSWER: a
RATIONALE: The Affordable Care Act (ACA) requires insurance companies to cover preventive care
and provides for standards that health insurance plans must adopt. It also eliminates being
excluded from coverage because of a pre-existing condition. The ACA does not include the
No Surprises Act but parts of the ACA inspired the creation of the No Surprises Act.
LEARNING OBJECTIVES: ALEH.PARD.23.01.08 - List the main types of managed care organizations.
22. Which indicates the holder has completed education, experience and has basic minimum qualifications required by
state law to perform certain procedures for a specific occupation?
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a. Degree
b. Being hired to work in a physician’s office
c. A license
d. Being hired to work in a physician’s office and a degree
ANSWER: c
RATIONALE: A license confirms the completion of the education and experience required to perform
certain procedures; it indicates the holder has basic minimum qualifications required by the
state for that occupation.
LEARNING OBJECTIVES: ALEH.PARD.23.01.02 - Differentiate among registration, certification, and
licensure for heath care providers.
23. What will you receive once you have attained a minimum level of education and training and passed an examination
required by an accredited certifying organization?
a. Degree
b. Certification
c. Professionalism
d. License
ANSWER: b
RATIONALE: You will receive certification once you have attained a minimum level of education and
training and passed an examination required by an accredited certifying organization.
LEARNING OBJECTIVES: ALEH.PARD.23.01.02 - Differentiate among registration, certification, and
licensure for heath care providers.
24. What federal law requires every health plan and provider to maintain reasonable and appropriate safeguards to ensure
the confidentiality of health information?
a. HITECH
b. FMLA
c. ACA
d. HIPAA
ANSWER: d
RATIONALE: HIPAA requires every health plan and provider to maintain reasonable and appropriate
safeguards to ensure the confidentiality of health information.
LEARNING OBJECTIVES: ALEH.PARD.23.01.06 - Summarize laws and standards that protect patients.
25. What is the name of profits of a corporation that are distributed to stockholders?
a. Shares
b. Dividends
c. Gifts
d. Stocks
ANSWER: b
RATIONALE: Profits of a corporation that are distributed to stockholders are called dividends.
LEARNING OBJECTIVES: ALEH.PARD.23.01.00 - Keywords and definitions
26. Which is a feature of Managed Care?
a. Delivering health care with lower costs and increased quality.
b. Allowing health care services without restrictions.
c. Eliminating premiums.
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