Business Law Multiple Question

Subject: Law    / Business Law

Question 1.1. (TCO 1) If the federal government has chosen not to regulate an area of interstate commerce that it has the power to regulate this is referred to as the______________. (Points : 10)

Non Regulatory Clause

Dormant Commerce Clause.

The Privileges and Immunities Clause

Implied Preemption

Question 2.2. (TCO 1) The doctrine requiring lower courts to follow and adhere to precedent established by higher courts is known as _________________. (Points : 10)

Legal Ordinance

Administrative Law

Stare Decisis

Regulatory Jurisprudence

Question 3.3. (TCO 2) Under the ________________ theory of social responsibility, a corporation must consider the effects its actions have on persons other than its shareholders.

@ Chapter 8, page 162 (Points : 10)

Moral Minimum

Profit Maximization

Stakeholder Interest

Social Justice

Question 4.4. (TCO 3) A long-term unsecured debt instrument that is based on a corporation’s general credit standing is known as a _________________________. (Points : 10)

Debt Security




Question 5. 5. (TCO 1) Explain the Equal Protection Clause of the 14th Amendment. (Points : 15)


Question 6. 6. (TCO 1) How does the law maximize individual freedom? (Points : 15)


Question 7. 7. (TCO 2) Analyze the business environment that led to the enactment of the Sarbanes-Oxley Act. (Points : 15)


Question 8. 8. (TCO 3) What is distributional interest? A member of an LLC transfers his distributional interest to his brother. Will his brother be considered a member of the LLC? Give arguments in support of your answer. (Points : 15)