Appendix A for Unit One
Questions on the Features
N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows.
N A question new to this edition of the Test Bank.
+ A question modified from the previous edition of the Test Bank.
= A question included in the previous edition of the Test Bank.
CHAPTER 1—SHIFTING LEGAL PRIORITES FOR BUSINESS:
SUSTAINABILITY AND THE LAW
B1. Sustainability—economic development that meets the needs of the present without
compromising the ability of future generations to meet their needs—has been
legislatively committed to by
a. no state statute or federal law.
b. at least one state—Oregon.
c. federal statutes only.
d. international law only.
62 TEST BANK B—UNIT ONE: THE LEGAL ENVIRONMENT OF BUSINESS
CHAPTER 2—INSIGHT INTO E-COMMERCE:
HOW THE INTERNET IS EXPANDING PRECEDENT
B2. In a brief filed in Gene’s suit against Hoyt in a federal court, Ilsa, Gene’s attorney,
cites, Jon v. Klint, an unpublished opinion. According to a ruling of the United States
Supreme Court, the judge in Gene’s suit
a. may consider the unpublished opinion persuasive.
b. must apply the unpublished opinion as binding.
c. must ignore the unpublished opinion.
d. must issue a judgment in Hoyt’s favor.
CHAPTER 3—SHIFTING LEGAL PRIORITIES FOR BUSINESS:
THE DUTY TO PRESERVE ELECTRONIC EVIDENCE FOR DISCOVERY
B3. In Eastside Grocery Company’s suit against Fresh Foods, Inc., Fresh seeks to discover
electronically stored information (ESI) that should be in Eastside’s possession. If
Eastside did not preserve the ESI despite a clear duty to do so, the company should
most likely
a. ask the court to sanction Fresh for an unreasonable request.
b. reconstruct the ESI to the best of its ability.
c. refuse to provide the ESI on the ground that it is confidential.
d. settle the dispute.
APPENDIX A FOR UNIT ONE 63
CHAPTER 4—INSIGHT INTO ETHICS:
IS IT ILLEGAL TO DISTRIBUTE VIRTUAL PORNOGRAPHY?
B4. Congress intends to enact a law to criminalize the distribution of illegal child
pornography on the Internet. Most likely to be held constitutional is a statute that
prohibits
a. offers to provide, and requests to obtain, child pornography.
b. the possession of virtual child pornography.
c. the possession of real and virtual child pornography.
d. a substantial amount of protected speech—especially pornography.
CHAPTER 5—SHIFTING LEGAL PRIORITIES FOR BUSINESS:
CORPORATE SOCIAL RESPONSIBILITY AND “OUTBEHAVING” THE COMPETITION
B5. World Investment & Trading, Inc., encourages its employees to build trust with its
customers and other companies. A corporation that “outbehaves” its competition
ethically
a. may outperform its competition financially.
b. most likely has fools for managers.
c. may succeed but is not likely to outperform its competition.
d. will undercut its profits and may not achieve business success.
64 TEST BANK B—UNIT ONE: THE LEGAL ENVIRONMENT OF BUSINESS
UNIT ONE—FOCUS ON LEGAL ETHICS:
ETHICS AND THE LEGAL ENVIRONMENT OF BUSINESS
B6. Energy Resources Company develops its marketing strategies in terms of what its
management perceives as its ethical obligations, which represent its
a. legal liability.
b. profitability.
c. standards of right and wrong.
d. unilateral corporate duties.
B7. Commercial Wholesale, Inc., conducts its operations unethically, which, when
revealed, will likely affect its
a. good will only.
b. profits only.
c. reputation only.
d. good will, profits, and reputation.