S23 - Business Law - Legal and Ethical Considerations

Which of these is NOT part of the Triple Bottom Line

• People

• Planet

• Profit

• Piracy

Which of these does a business NOT act through:

• Shareholders

• Officers

• Directors

• Employees

Answer explanation

Shareholders own the company, but they don't have any power to bind the company, and the company isn't liable for what the shareholder does.

Many businesses do more than the law requires, because they want to impress three types of people. Which of these is NOT one of those types of people:

• Customers

• Employees

• Shareholders

• Competitors

Which of these is NOT a criminal penalty that businesses can face:

• The company goes to prison

• The company pays fines

• The company loses business licenses

• The company faces tight regulatory scrutiny

True or False.  You can have a ethically duty without a legal duty, and vice-versa.

• True

• False

To dedide whether there was apparant authority to enter a contract, we look at:

• Whether the agent acted like a reasonable person

• Whether the principal acted like a reasonable person

• Whether a reasonable person would believe that the agent had authority to enter the contract for the principal

• All of these

Match the position with its description:

• They are elected by the shareholders

• CEO

• They are the owners of the company

• COO

• This second-ranking person builds and implements policies to help the company achieve its vision

• CFO

• This top-ranking person forms and drives the vision of the company

• Directors

• This officer is responsible for the accounting of the company

• Shareholders

True or False.  Even if the business is vicariously liable for the negligent act of its employee, the plaintiff can't recover from the business unless it shows that the employee was negligent, and the negligence was the proximate cause of plaintiff’s damages.

• True

• False

Which of these defenses can the business make in a negligence case, if the business is vicariously liable?

• Comparative fault

• Statute of limitations

• Proximate cause

• Any of these

• None of these - that is the whole point of vicarious liability

Answer explanation

The business is only liable if the employee is liable - the business stands in the shoes of the employee and can use all the defenses that the employee could use.

Which of these does the plaintiff need to prove before the business will be liable for negligence committed by someone that works for them:

• the worker is an employee

• the worker was acting within the scope of their authority

• the businsess benefited from the worker's acts

• the worker had authority