question

The characteristics of the law is that the law is:

answer

Powerful, Important, & Fascinating

question

The sources of contemporary law is the:

answer

US Constitution, State Constitution, Statute, Common Law, Administrative, Treaties and Executive order

question

The reason why one bothers with ethics is because:

answer

Society as a whole benefits by encouraging economic competition. People feel better when they behave ethically. Unethical behavior can be costly.

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Not a stakeholder

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A business competitor

question

The issue in Kuehn v Pubzone was

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Did the bar have a duty to protect its patrons?

question

What is the purpose of a corporation per Milton Friedman?

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1)Make the shareholders money. 2) Comply with the law.

question

Of the philosophies of ethics which one did owner of malden Mills Factory exhibit?

answer

Utilitarianism

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Which philosophies of ethics did John Stump CEO of Wells Fargo exhibit?

answer

Consequentialist

question

What is business law?

answer

Encompasses all of the laws that dictate how to form and run a business.

question

Of the ten law subjects that are included in business law, identify three.

answer

Torts, Contracts, Criminal law, Bankruptcy, Employment law, Labor law, Consumer Law, Environmental law, Cyber Law, & Real property law.

question

In comparing the classifications of criminal law and civil law name one difference for each one

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Criminal Law: Guilt is determined Civil Law: Guilt is not determined

question

What is a shareholders model and who does it include?

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The primary responsibility of corporations is not only to take care of shareholder but also its employees, customers and communities, even if it makes less profit.

question

Of the seven steps in decision making name three steps?

answer

Identify the decision. Gather relevant information Identify Alternatives

question

Of the ethics philosophies which one supports the use of risk management?

answer

Utilitarianism

question

Examples of Agents

answer

Diane - shoe salesperson for retail store Tim - real estate broker for large real estate company Craig - Telephone marketing employee

question

What is considered a common area of danger

answer

Fire, Earthquake, Stock market crash, Violent storms

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What is not required of an agency relationship

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Consideration

question

Layout of the plant, interconnectivity of roads and proximity of the fire station.

answer

Risk exposure to data

question

An agency relationship can be created:

answer

by the conduct of the parties

question

the process of identifying a risk is

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Review common dangers Identify specific preventions that are available Chose a prevention that benefits the organization at a reasonable cost

question

What is a principle and the two duties to an agent

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A principal is the person whom such an act is done or who is so represented. Duties: To Reimburse the agent for responsible expenses Duty to coroporate

question

Nam the five steps in risk management process

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Establish the context Identify the Risk Analyze the Risk Evaluate the Risk Treat the Risk

question

What is an employee

answer

works regularly for an employer and receives standard employment benefits.

question

What is an independent contractor

answer

A person or business which preforms services for another person or entity under a contract between them, with the terms spelled out such as duties, pay, the amount and type of work and other matters.

question

Differences between independent contractors and employees

answer

Employees: receive health, life, dental and disability insurance form employer; funded retirement plans; paid vacation and maternity leave Contractors: pays his/hers social security, income taxes without payroll deduction, has no retirement or health plan rights.

question

Name three of the Multi - Disciplinary personnel involved with Risk management

answer

Insurance managers Fire engineers Statisticians Risk level management All levels of management

question

Of the seven types of risk, identify three in Malden Mills

answer

Compliance Risk Operational Risk Material Risk Financial Risk

question

Advantages of Alternative Dispute Resolution include

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ADR is faster than litigation ADR keeps the parties talking rather than fighting ADR is less expensive than litigation

question

The fastest growing method of dispute resolution in the U.S.

answer

mediation

question

Jurisdiction

answer

the authority of a court to decide a particular type of case

question

Federal jurisdiction based upon a federal question includes cases based on

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The united states constitution a federal statute a federal treaty

question

under which of the following does the insured have a right to borrow against his policy

answer

Whole life policy

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a policy that makes payments to the owner monthly for her entire life is called

answer

an annuity

question

Health insurance plans that specify that the patient can be treated only by doctors in the organization

answer

Health Maintenance Organization

question

What is Umbrella Insurance

answer

insurance that protects you when accidents happen and your current insurance can't cover all the expenses so it will pick up where your coverage lacks

question

What rights does the other insurer have if it found that the insured has misrepresented important facts

answer

Insurers have the right to void a policy if during the applications process the insured conceals a material fact or misrepresents something

question

What is an insurable interest and why is it important?

answer

An insurance contract is not valid unless the owner has an insurable interest in the subject matter of the policy.

question

What are the courts included in the states court system

answer

Trial courts, Appellate Courts, State Supreme Courts.

question

The law teaches us

answer

how to behave properly and inform us of the rules we must all follow

question

Law affects

answer

all people from CEOs to children

question

Helping a hurt person is required by moral standard but not by

answer

the law

question

there is no strong evidence that ethical behavior

answer

increases profits or unethical behavior decreases profits

question

Top executives do not have an effect on ethics throughout an organization

answer

false

question

Agency

answer

An employee relationship in which the agent agrees to preform a task for and under control of the principal

question

As a general rule an agent is liable on contracts entered into on behalf of a fully disclosed principal

answer

False

question

Risk Management

answer

the potential of gaining or losing something of value

question

An agent cannot disclose nor use for their own benefit

answer

any information they learn during the agency

question

John Stuart Mills would have been supportive of

answer

Risk Management

question

One of the problems facing employees in the Gig Economy

answer

Is misclassification as an independent contractor

question

Insurance

answer

a contract on which one person for a fee agrees to guarantee another against a specific loss

question

Disability insurance is important because

answer

the average person is seven times more likely to be disabled for at least 90 days than to die before 65

question

An insurance policy must meet all the common law requirements for a contract

answer

true

question

Primary methods of alternative dispute include litigation and mediation

answer

false

question

generally, mandatory arbitration provisions in a contract are valid

answer

true

question

summary judgement is appropriate when there are no essential facts in dispute.

answer

true

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