WorksheetsLegal and Ethical Considerations for Business
Total questions: 27
Worksheet time: 14mins
Name
Class
Date
1.
____ is the normal measure of damages for breach of contract, because we want to avoid ___.
a)
Specific Peformance
b)
Economic Waste
c)
Benefit of the Bargain
d)
Unique or one-of-a-kind
2.
____ is the measure of damages for breach of contracts that involve ______ goods.
a)
Specific Peformance
b)
Economic Waste
c)
Benefit of the Bargain
d)
Unique or one-of-a-kind
3.
Extra Credit: Which of these does the law want to discourage:
a)
Crimes
b)
Negligence
c)
Intentional torts
d)
Breach of contract
4.
Extra Credit: Which of these does the law want to encourage, if it avoids economic waste:
a)
Crimes
b)
Negligence
c)
Intentional torts
d)
Breach of contract
5.
True or False. You can have a ethically duty without a legal duty, and vice-versa.
a)
True
b)
False
6.
To dedide whether there was apparant authority to enter a contract, we look at:
a)
Whether the agent acted like a reasonable person
b)
Whether the principal acted like a reasonable person
c)
Whether a reasonable person would believe that the agent had authority to enter the contract for the principal
d)
All of these
e)
None of these
7.
Which of these are employees NOT personally liable for, even if they are acting within the scope of their employment:
a)
Negligence
b)
Intentional Torts
c)
Crimes
d)
Acts that their employer prohibits
e)
Breach of contract
8.
Which of these can the business liable for, if their employee was acting within the scope of their employment:
a)
Negligence
b)
Intentional Torts
c)
Crimes
d)
All of these
e)
Acts that their employer prohibits
9.
Businesses often decide to use _____ , instead of _____, to reduce costs and legal liability.
a)
employees, independent contractors
b)
independent contracts, employees
c)
cats, dogs
d)
wheels, doors
e)
mayonnase, mustard
10.
Businesses can be liable for torts or crimes committed by their ____, but not by _____.
a)
employees, independent contractors
b)
independent contracts, employees
c)
cats, dogs
d)
wheels, doors
e)
mayonnase, mustard
11.
The difference between employees and independent contractors is
a)
How much control the business has
b)
How much money the business has
c)
How much money the business pays
d)
Whether the contract calls them an independent contractor or an employee
12.
Typically, the more control a company has over over independent contractors, the _____ the work, but the ____ the potential for legal liability.
a)
better, greater
b)
worse, lower
c)
cats, dogs
d)
wheels, doors
13.
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.
a)
True
b)
False
14.
True or False. Even if the business is vicariously liable for the negligent act of its employee, the business can raise any defenses that the employee could raise - like comparative fault or statute of limitations.
a)
True
b)
False
15.
True or False. Businesses can be liable for the crimes committed by their employees
a)
True
b)
False
16.
Which of these does the plaintiff need to prove before the business will be liable for negligence or intentional torts committed by someone that works for them:
a)
the worker is an employee
b)
the worker was acting within the scope of their authority
c)
the businsess benefited from the worker's acts
d)
the worker had actual authority
e)
the worker had apparant authority
17.
Which of these does the plaintiff need to prove before the business will be liable for criminal acts committed by someone that works for them:
a)
the worker is an employee
b)
the worker was acting within the scope of their authority
c)
the businsess benefited from the worker's acts
d)
the worker had actual authority
e)
the worker had apparant authority
18.
The business is liable for contracts entered by someone on their behalf, if the plaintiff can prove ____ or _____.
a)
the worker is an employee
b)
the worker was acting within the scope of their authority
c)
the businsess benefited from the worker's acts
d)
the worker had actual authority
e)
the worker had apparant authority
19.
Under agency law, the employee is an ____, and the business is the _____.
a)
agent, principal
b)
principal, agent
c)
cookie, milk
d)
milk, cookie
20.
_____ is when the business authorized an employee to enter a contract.
a)
Actual authority
b)
Apparent authority
c)
Both of these
21.
_____ is when the business did not authorize an employee to enter a contract, but a reasonable person would believe the employee had authority.
a)
Actual authority
b)
Apparent authority
c)
Both of these
d)
None of these
22.
_____ can be created by acts of the agent, without any acts of the principal.
a)
Actual authority
b)
Apparent authority
c)
Both of these
d)
None of these
23.
_____ can bind the company to a contract.
a)
Actual authority
b)
Apparent authority
c)
Either of these
d)
Neither of these
24.
True or False. Many businesses believe that spending money for things other than just generating profits actually increases the profitability of the business.
a)
True
b)
False
25.
Which of these statement about the Alien Tort Statute is NOT true:
a)
It is an exception to the general rule that businesses can't sued in the U.S. for things that they do outside the U.S.
b)
It is very narrow, and only applies to things like piracy
c)
SCOTUS used it to find Nestle liable for child slave labor that happened in the cocoa fields in the Ivory Coast
d)
The negative publicity generated by claims under this statute has caused companies to spend billions to help reduce child slave labor
26.
The normal remedy for breach of contract is:
a)
Money damages
b)
Specific performance
c)
Both of these
d)
Neither of these
27.
If the court requires a party to do what they promised to do in a contract, that is called _______.
a)
Money damages
b)
Specific performance
c)
Both of these
d)
Neither of these
100 %
