Edmentum: Consequences of Illegal Conduct (Business Law)

How would a past history of criminal charges potentially affect a company’s ability to recruit highly talented employees?

• One of the consequences of it is that future employees also end up sharing personally in the company’s criminal record.

• The potential employees would view the company with less confidence because of the company’s past history.

• Companies with criminal convictions are not allowed to use public communications systems for recruiting purposes.

• A criminally charged company is only able to hire a limited number of employees each year.

A large national company has seen its stock value decrease during the past month. Which of the following might be a reasonable explanation for the cause of this?

• The company is experiencing tremendous growth.

• The company sales forecast is extremely positive.

• The company’s new product line is a top seller.

• They are under criminal investigation and facing potential charges.

Which of the following involves a loss of personal freedom?

• Attorney fees

• Probation

• Fines

• Restitution

What is usually the maximum fine for an individual convicted of a minor crime?

• $2,500

• $10,000

• $500

• $1,000

Which of the following is an example of a business collateral consequence?

• Going to jail

• Probation

• Paying attorney fees

• A drop in sales

A tire manufacturer has recently discovered that numerous lots of tires produced at one of their plants over recent months used a defective synthetic material. The result was that these tires are far too likely to rupture at much lower air pressure levels than normal. This has led to many accidents, including some fatalities. The company has not been able to determine why the material was defective. Which of the following is likely to be true in this situation?

• Because it is not clear why the material is defective, the manufacturing company themselves cannot be held responsible.

• The manufacturer as a company will be liable to pay significant amounts of money to those harmed by the defective tires.

• The company is obligated to find the individual responsible for the defective material so that he or she can be punished.

• If the company can recall all defective tires as soon as it has discovered its fault, it will not be held liable for the accidents that already took place.

Which of the following is a factor in determining what laws and regulations affect a particular business?

• Business size

• Design of business logo

• Date business was founded

• Business name

Which of the following would be an appropriate consequence for a small traffic violation?

• Probation

• Paying a fine

• Paying restitution

• Being sent to prison

Which of the following is an example of a personal collateral consequence?

• Paying attorney fees

• Being sent to jail

• Paying fines on behalf of a business

• Losing a license or certification

Due to gross negligence of an individual, the houses of a number of his neighbors suffered damage. The guilty party was required to pay to the neighbors amounts sufficient for the repairs. This is an example of _________.

• restitution

• incarceration

• probation

• community service

• fines