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Exam 49: The Legal Environment of Business

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Question 1

Multiple Choice

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Fuel-Co Gas Stations LLC pads all of its customers' bills with an unexpected fee, adding up to millions in profit for Fuel-Co at a small expense for each individual customer. The customers could most affordably fight this charge by

A) bringing individual lawsuits.
B) engaging in individual arbitration.
C) filing a class action.
D) taking their case to the state legislature.

E) A) and B)
F) B) and C)

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Question 2

Multiple Choice

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In evaluating the reasonableness of a state statute prohibiting sex offenders from accessing all social media, a court must strike a balance between

A) the government's obligation to protect its citizens and uphold their rights.
B) sex offenders' expectations of privacy and the online environment.
C) social media users' speaking and listening in a modern public square.
D) the vast realms of human thought and knowledge.

E) B) and D)
F) None of the above

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Question 3

Multiple Choice

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Lare applies for a job with Marketing Inc. Like most employers, Marketing informs Lare that "any claim relating to this application or employment shall be settled by

When making a business decision, those responsible for making it sometimes focus on short-run profit maximization in preference to ethical considerations. Subject to analysis according to the IDDR framework, this decision would most likely

According to the United States Supreme Court, under the First Amendment, if speech is the means for the commission of a specific criminal act,

Suha wishes to file a suit in a state court against Theta. The state allows for service of process via social media if Suha can authenticate Theta's social media account. Allowing service of process only by means of social media raises a question whether that service comports with

Smelting Company has in interest in staying in business. From this perspective, with respect to resolving disputes through arbitration, individual litigation, and class actions, Smelting is ethically required to

Bud patents a device that allows its user to pretend to imitate the ability of a superhero copyrighted by Comic Con Inc. Bud and Comic Con enter into a licensing agreement to make and sell the device as a toy to the public. Under the terms of the license, the licensee agrees to pay Bud royalties of 4 percent. Their contract does not specify an end date. According to a majority of the United States Supreme Court in Kimble v. Marvel Entertainment , LLC, Comic Con can legally stop the payments

Security Patrols Inc. requires its employees to respond to work-related text messages delivered via their company-issued smartphones while on duty in the workplace and while off duty elsewhere. Security's employees might successfully sue their employer for

Regional Sales Company expects its sales staff to constantly check their e-mail for work-related messages outside normal working hours. Employees' constant online connectivity with their work raises an issue about

Bey, a process server, cannot locate Cate, the defendant in Demi v. Cate , to serve her with the summons. Bey's legal and effective options for serving process include delivering the summons

An important reason for applying the IDDR approach to a review of the ethical conflicts in a given business situation, and one of the difficulties in evaluating its consequences, is to

Senta applies for credit with Truck Sales Inc. The company informs Senta that "any claim arising from this deal must be resolved through mandatory arbitration." Through this clause, Truck Sales will most likely avoid all of the following except

Hosni patents a new type of running shoe. Hosni and Iconic Shoe Company enter into a contract that allows the firm to make and market the shoe in exchange for royalty payments to Hosni that decrease after the patent expires. In a previous case, a similar agreement was held to be invalid. According to the dissent in Kimble v. Marvel Entertainment , LLC, stare decisis