LES 305 Business Law and Ethics (Exam 2) Questions and Answers

LES 305 Business Law and Ethics (Exam 2) Questions and Answers Some of you may remember the controversy about whether Apple and other smartphone manufacturers should be able to unlock and decrypt smartphones to assist the government with criminal investigations. Some courts have ordered Apple and others to unlock and decrypt smartphones. Legal scholars believe that Congress should create a law regulating the encryption of smartphones and the right of the government to decrypt them, rather than the courts. When the courts are creating the law, then this would violate - AnswerSeperation of Power /.President Trump's ability to veto any laws created by Congress, such as the laws contemplated in thequestion above is an example of - AnswerChecks and Balances /.An intern was fired for posting a photo of a sign that her employer posted that appeared to indicate that the company was minimizing the danger of alligators on its property. Did the company violate her Constitutional rights by firing her? - AnswerShe has no constitutional rights /.Under the Commerce Clause, the federal government has the right to regulate any area of business - Answerhat impacts interstate commerce. /.lfonso Lopez, Jr., a 12th-grade student at Edison High School in San Antonio, Texas, arrived at school on March 10, 1992, carrying a concealed .38 caliber handgun and five bullets. He was arrested and charged with a violation of the federal Gun-Free School Zones Act of 1990. Lopez moved to dismiss his indictment under this law because the law is beyond the power of Congress to act. Lopez was found guilty and sentenced to six months' imprisonment. He appealed and the Fifth Circuit Court of Appeals agreed with Lopez, finding the law to be an unconstitutional exercise of congressional power, and reversed the conviction because - Answercarrying a gun is not an economic activity, so Congress has no power to regulate it under the Commerce Clause. /.he United States Supreme Court determined that Congress exceeded its authority to regulate commerce under the Commerce Clause in U.S. v. Morrison when it created a special federal cause of action punishing violence against women in the Violence Against Women's Act because violence is not an economic activity. - AnswerTrue /.Ollie's Barbeque is a family-owned restaurant in Birmingham, Alabama with a seating capacity of 220 customers. It is located on a state highway which is 11 blocks from an interstate highway. A sign in the restaurant provides that take-out service only is available for African Americans. Congress passed the Civil Rights Act in 1964, which prohibited this type of discrimination. Ollie's purchases about $150,000 annually from a local restaurant supplier and 46% that amount is from out-of-state distributors. Will the Commerce Clause permit the application of the Civil Rights Act to Ollie's? - AnswerYes. Ollie's purchases a significant quantity of goods that originate out of state, so the discriminatory conduct impacts interstate commerce. /.What authority would the state of Arizona claim for passing a mandatory seat belt law requiring anyone traveling in Arizona to put on his or her seat belt? - AnswerPolice Power /.In January 2015, the Super Bowl was held at the University of Phoenix Stadium in Glendale, Arizona. The state of Arizona could tax patrons who reside in states other than Arizona who are visiting Arizona hotels at a rate that is higher than the tax rate assessed against patrons who are from Arizona. - AnswerFalse /.The requirements to impose a valid state tax that is levied upon goods originating out of state include - Answera. The tax cannot discriminate against interstate commerce. b. The tax cannot be an undue burden on interstate commerce. c. There must be a "sufficient nexus" between the state and the business being taxed d. The tax must be apportioned fairly. e. All of the above are correct.* /.Pen Corporation is a Delaware corporation with offices and warehouses in Arizona and California. Pen owns no property in North Carolina and has no employees in North Carolina. Pen sells office supplies via catalog. North Carolina imposed a retail use tax on Pen on sales to North Carolina residents. Is this tax valid? - AnswerYes. Pen purposefully directed its activities at North Carolina and could be required to pay taxes. /.LL Bean has warehouse facilities in Maine, Nevada, Washington, Idaho, Utah, and North Dakota. - AnswerAny state in which LL Bean has warehouses can tax LL Bean on the inventory in that particular state. /.One of the issues that courts review to determine whether a federal law preempts a state law is whether the federal government expresses a desire to be the exclusive regulator in this arena. - AnswerTrue /.The state of Wyoming has just passed a law requiring all cars entering the state to be equipped with side air bags. The federal government has expressed its desire to preempt any state laws relating to automobile safety equipment. Therefore, the Wyoming requirement: - Answeris preempted by the federal requirement /.The federal government passed several laws prohibiting the production, sale and consumption of alcohol for non-medicinal purposes. The legislation specifically allowed and encouraged states to pass laws prohibiting the consumption of alcoholic beverages. If a state did pass laws prohibiting the sale of alcohol on Sundays, then - AnswerThe federal law and the state laws will both be valid /.The Arizona Employer Sanctions Law requires Arizona businesses to verify a prospective worker's legal status using the E-Verify system before hiring the worker. The federal Immigration Reform and Control Act requires employers to collect identification information and submit a completed I-9 form to the government for new hires. What is the likely reason that the federal and state law are both enforceable? This is because - AnswerThe federal government did not express a desire to be the sole regulator of worker employment verification so the state government may also regulate. /.In January 2010, the Arizona Senate approved a bill to strengthen immigration enforcement laws by making it a crime to be in Arizona illegally or to transport or conceal an undocumented immigrant. It also seeks to curb day-labor employment by making it a crime for an undocumented immigrant to solicit work in a public place or for anyone to hire someone from a vehicle. There are a number of federal laws that also prohibit hiring undocumented workers. What arguments are legally valid in favor of the federal law preempting state law? - AnswerThe issue is more easily regulated by one central government body. /.An Arizona law that requires beer that is produced in California to undergo numerous tests for health and safety purposes will be upheld if beer produced in Arizona does not need to undergo the same tests. - AnswerFalse /.Where in the U.S. Constitution are the provisions governing a student's right to a hearing prior to suspension from a public school? - AnswerDue Process Clause /.The First Amendment prohibits state regulation of false advertising. - AnswerFalse /.Chinese artist and anti-government protestor, Ai Weiwei, created a mural commemorating the 70,000 lives lost in a 2008 Sichuan earthquake. The artist had made several statements criticizing the government for its shoddy construction of school buildings. The mural is comprised of 9,000 children's backpacks to spell out, in Chinese characters, "She had been happy living in this world for 7 years" which is a quotation from the mother of one of the victims. (Children were disproportionately among the victims.) In the US, the mural and statements criticizing the government would be considered to be ________ and the government could _________ - AnswerPolitical speech; not regulate the content. /.Advertising is given: - Answerless protection than political speech. /.The Nike v. Kaskycase illustrates that commercial speech may include interviews, press releases, and comments in the editorial pages in the newspaper - AnswerTrue /.You are the CEO for a company that sells electronic cigarettes. Numerous citizens have complained that your company's products are unsafe. You are considering using social media to get out the message that e-cigarettes are safe and your intent is to claim that the e-cigarettes have not caused injuries. If you do make these claims using social media, these statements - Answermay be considered commercial speech, so they may not be protected from government regulation. /.Comedian Stephen Colbert and many of his guests, including former Supreme Court Justice John Paul Stevens, have been very critical of the decision in the Citizens United case on his television show. This criticism is protected from government interference. - AnswerTrue /.Corporations have the right to exercise political speech. - AnswerTrue /.Which of the following actions by a corporation would enjoy full First Amendment protection (i.e., could not be regulated)? - Answera media campaign by a tobacco company against a cigarette tax increase /.An Arizona law referred to as "SB 1070" allows police to require birth certificates or other documents proving citizenship for anyone they suspect is undocumented. If the law is enforced by police officers in a manner in which people are racially or ethnically profiled, whereby people such as Latinos, for example, would be stopped and asked for citizenship papers in disproportionally high numbers compared with other ethnic groups, then this would violate - AnswerEqual Protection /.The Fifth Amendment allows the government to take private property for government purposes. - AnswerTrue /.You own a dairy farm in Arizona and you sell your milk to wholesalers in Arizona and California. California passes a law requiring milk that is produced out of state to undergo numerous expensive tests that California milk producers do not need to pass. You should - Answerchallenge the law because it discriminates against interstate commerce. /.Which group is not directly liable for business crime? - Answershareholders /.The court in U.S. v. Park decided that there is no criminal liability for a corporate officer who had notice of a violation of the law if he could prove that he delegated the responsibility to someone else. - AnswerFalse /.The board of directors is responsible for establishing a company's compliance program and ensuring that is functioning effectively. - AnswerTrue /.orporate boards could be held liable for their failure to create and monitor adequate internal controls to prevent fraud. - AnswerTrue /.A corporation's failure to follow crime prevention programs can result in harsher sentences under the U.S. corporate sentencing guidelines - AnswerTrue /.Voluntary reporting of criminal violations reduces a company's penalties under the federal sentencing guidelines. - AnswerTrue /.Which of the following would mitigate an officer's or corporation's sentence under the corporate sentencing guidelines? - Answerthe company