LEGAL & REGULATORY ENVIRONMENT OF BUSINESS Assignment 3

LEGAL & REGULATORY ENVIRONMENT OF BUSINESS Assignment 3Name: _______________________________
Multiple Choice/ True or False – Questions
1. The conduct that violates the The anti bribery provisions of the FCPA may also
give rise to a private cause of action for treble damages under the Racketeer
Influenced and Corrupt Organizations Act (RICO).
True False 2. The International Monetary Fund (IMF) encourages international trade by
maintaining stable foreign exchange rates and works closely with commercial
banks to promote orderly exchange policies with members.
True False 3. The Convention on the International Sale of Goods does not require contracts for
the sale of goods to be in writing.
True
4. The Hague Service Convention is a treaty designed to provide a simpler way to
serve process abroad when suing foreign businesses.
True 5. False False The Commerce Clause gives rise to the federal government’s power to regulate
business activity.
True False 6. Regulation is considered appropriate if it aids intrastate commerce over interstate
commerce.
True False 7. The National Drug Prevention and Testing Act of 1994 includes uniform
guidelines regarding the drug testing of employees. 1 True
8. False Liability of the employer exists regardless of lack of negligence or fault, provided
the necessary association between the injuries and the business of the employer is
present.
True False 9. _____ is used in the context of international law as the seizure of foreign-owned
property by a government.
A. Nationalization
B. Possession
C. Power of eminent domain
D. Export Controls
E. Expropriation
10. Which of the following is true of the International Court of Justice?
A. Private parties and corporations have access to the court and can directly present their
claims.
11.
B. Using legal devices, firms and individuals can compel the U.S. government to press
claims on their behalf before the Court.
12.
C. Only countries that have submitted to the Court’s jurisdiction may be parties.
13.
D. The Court has enforcement authority and does not rely on diplomacy or economic
sanctions against countries.
14.
E. It is compulsory for all countries to accept the Court’s jurisdiction, whether or not the
use of the Court suits their interests. 2 15. The _____ encourages international trade by maintaining stable foreign exchange
rates and works closely with commercial banks to promote orderly exchange
policies with members.
A. World Bank
B. World Trade Organization
C. General Agreement in Tariffs and Trade
D. International Monetary Fund
E. Convention on International Sale of Goods
16. Grimmy Fast Food Ltd., located in New York, grants Truffle Eateries, a chain of
restaurants in Paris, permission to produce and sell Grimmy’s famous pizzas.
Truffle will launch Grimmy’s in Paris and sell the products. This is an example of
which of the following?
A. Foreign subsidiary
B. Direct foreign investment
C. Sovereign immunity
D. Franchise
E. International trade
17. Which of the following is true concerning the arbitration of international
disputes?
A. Arbitration is not widely practiced and, hence, is not an easily available option.
B. Arbitration creates more publicity than litigation.
C. Arbitration is complex alternative for the parties involved.
D. Arbitration can be compelled, where previously agreed upon by the parties.
E. Arbitration has been proven to have limited effectiveness concerning international
disputes.
18. Under the regulation of interstate commerce:
A. The states have the exclusive power to commerce that passes across
their lines.
B. Activities affecting interstate commerce do not come under the power
of the deferral government.
C. Regulation on any activity is appropriate if it aids interstate commerce. 3 D. Intrastate activities affecting interstate commerce can be regulated only
by the state governments.
E. The Congress cannot regulate a local activity
19. The dormant commerce clause concept:
A. Is the term used to refer to the police powers being limitless
B. Does not allow the state regulation to violate commerce clause.
C. Refers to the exclusive Congressional authorization on a matter of
trade.
D. Comes into focus when the state is acting in the business.
E. Permits the state regulation to be arbitrary. 20. The _____ function of an administrative agency is accomplished by
making reports to the president or the Congress. A.
B.
C.
D.
E. Adjudicatory
Advisory
Rule making
Investigatory
Determinacy 21. Which of the following protects the public against unreasonable risks of
injury associated with consumer products? A.
B.
C.
D.
E. FCC
FTC
CPSC
EEOC
FERC 22. _____ regulates interstate and foreign communications by means of radio,
television, wire, cable, and satellite. A.
B.
C.
D.
E.
23. FCC
FTC
CPSC
EEOC
FERC
If the state minimum wage rate differs from the federal minimum wage
rate, then employers:
A. Have the legal right to pay whichever minimum wage is lower.
B. Have the legal right to choose the minimum wage rate to be paid. 4 C. Are legally required to pay the federal minimum wage rate.
D. Are legally required to pay whichever minimum wage is higher.
E. Are legally required to pay the state minimum wage rate.
24. Jamie works as a barista at Coffee-Ha-Ha, a small chain of three coffee
houses, in the main facility located in Paradise, New Jersey with 60 other
employees. He has worked there full time for 18 months. His wife has
called with some bad news. His mother was driving with Jamie’s 10-yearold daughter, Delores, and has had an accident severely injuring both of
them. Jamie has asked his employer for leave under the Family Medical
Leave Act. Which of the following is true?
A.
B.
C.
D.
E. Granting the leave is entirely at the discretion of the employer;
the employer does not permit him the leave as it would hamper the
functioning of Coffee-Ha-Ha.
Jamie is not entitled to the leave because the number of hours he
has worked during the preceding 12 months is less than what is
required by law.
Jamie is entitled to leave for taking care of his mother-in-law and
daughter, regardless of his daughter‘s age.
Jamie is only entitled to the leave to take care of his daughter.
The provisions of this Act apply only to females. 25. An employee is eligible to qualify for the Family and Medical Leave Act benefits
if the employee has worked:
A.
B.
C.
D.
E. 1,040 hours during the previous 12 months.
1,250 hours during the previous 12 months.
1,950 hours during the previous 12 months.
2,080 hours during the previous 12 months.
3,000 hours during the previous 12 months. 5

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