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Description Law Business and Society Tony McAdams 12th Edition- Test Bank Sample Questions Instant Download With Answers Chapter 3 The Corporation and Public Policy: Expanding Responsibilities 1) The business community in America influences the electoral and law-making processes.
Answer: TRUE Explanation: Critics argue that big money enables the business community to disproportionately influence the electoral and law-making processes. In recent decades, the corporate community has taken an increasingly direct role in the political process. Difficulty: 1 Easy Topic: Corporate Power Learning Objective: 03-01 Recognize the interdependent relationship between business and the larger society.; 03-02 Discuss whether business should play a more or less active role in politics, education, and other public-sector activities. Bloom’s: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation
2) Corporations cannot lawfully solicit campaign contributions from employees, shareholders, and others.
Answer: FALSE
Explanation: Corporations can solicit contributions from employees, shareholders, and others. That money is then put in a fund, carefully segregated from general corporate accounts, and disbursed by the political action committees in support of a political agenda preferred by officers, managers, or shareholders. Difficulty: 1 Easy Topic: The Corporate State—Politics Learning Objective: 03-02 Discuss whether business should play a more or less active role in politics, education, and other public-sector activities. Bloom’s: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation
3) Labor unions can lawfully use members’ dues to establish political action committees.
Answer: FALSE Explanation: Corporations, labor unions, special interest groups, and others can lawfully establish political action committees (PACs) to solicit and disburse voluntary campaign contributions. That is, corporations can solicit contributions from employees, shareholders, and others. Difficulty: 1 Easy Topic: The Corporate State—Politics Learning Objective: 03-02 Discuss whether business should play a more or less active role in politics, education, and other public-sector activities. Bloom’s: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation
4) Corporate funds cannot lawfully be given directly to candidates for the United States Congress.
Answer: TRUE Explanation: Corporate funds cannot lawfully be given directly to candidates for federal office. However, corporations, labor unions, special interest groups, and others can lawfully establish political action committees (PACs) to solicit and disburse voluntary campaign contributions. Difficulty: 1 Easy Topic: The Corporate State—Politics Learning Objective: 03-02 Discuss whether business should play a more or less active role in politics, education, and other public-sector activities. Bloom’s: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation
5) Lobbying is not confined to the business community.
Answer: TRUE Explanation: Lobbying is not confined to the business community. Lobbying also often serves the very useful role of efficiently educating busy politicians about the vast array of issues they must address but cannot possibly master without assistance. Difficulty: 1 Easy Topic: The Corporate State—Politics Learning Objective: 03-02 Discuss whether business should play a more or less active role in politics, education, and other public-sector activities. Bloom’s: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation
6) A union’s Political Action Committee (PAC) must support all different political agendas advocated by each union member.
Answer: FALSE Explanation: Corporations (as well as labor unions, special interest groups, and others) can lawfully establish political action committees (PACs) to solicit contributions from employees, shareholders, and others. That money is then put in a fund, carefully segregated from general corporate accounts, and disbursed by the PAC in support of a political agenda preferred by the organization. Difficulty: 1 Easy Topic: The Corporate State—Politics Learning Objective: 03-02 Discuss whether business should play a more or less active role in politics, education, and other public-sector activities. Bloom’s: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation
7) The outsourcing of good, high-paid factory jobs from the United States to less developed nations has fundamentally challenged and changed life in the country.
Answer: TRUE Explanation: The outsourcing of good, high-paid factory jobs from the United States to less developed nations has fundamentally challenged and changed life in this country. In general, it can be seen that concerns about corporate domination of American life are now being applied to the entire globe. Difficulty: 1 Easy Topic: The Corporate State—Economics Learning Objective: 03-04 Discuss concerns about globalization. Bloom’s: Remember
AACSB: Analytical Thinking Accessibility: Keyboard Navigation 8) Churches now routinely employ standard business practices including advertising, promotional giveaways, and marketing campaigns.
Answer: TRUE Explanation: Churches now routinely employ standard business practices such as advertising, promotional giveaways, and marketing campaigns. Religion, in some sense, has become a product. Difficulty: 1 Easy Topic: The Corporate State—Economics Learning Objective: 03-03 List some of the critics’ primary complaints about the alleged abuse of corporate power in contemporary America. Bloom’s: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation
9) Although business has enjoyed a central and favored role in American life, it need not assume a measure of the burden for the welfare of the total society.
Answer: FALSE Explanation: Business has enjoyed a central and favored role in American life. As such, it must assume a measure of the burden for the welfare of the total society. Indeed, businesspeople themselves now generally endorse businesses’ responsibility to help solve society’s problems. Difficulty: 1 Easy Topic: The Corporate State—Social Issues and Institutions
Learning Objective: 03-05 Make a tentative assessment regarding the proper role of business in society. Bloom’s: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 10) Business was largely exempt from any affirmative duty for the resolution of social problems until the 1950s when business scholars and critics began to encourage a broader conception of corporate duty.
Answer: TRUE Explanation: Business was largely exempt from any affirmative duty for the resolution of social problems until the 1950s when business scholars and critics began to encourage a broader conception of corporate duty. Now in the 21st century, expectations for business in society have been radically altered. Difficulty: 1 Easy Topic: The Corporate State—Social Issues and Institutions Learning Objective: 03-05 Make a tentative assessment regarding the proper role of business in society. Bloom’s: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation
11) Renewed corporate community engagement, in conjunction with the growing influence of business values throughout American life, has led in recent decades to the development of the doctrine of corporate social responsibility.
Answer: FALSE Explanation: The business community is intensely criticized. That broadly shared perception of business misdeeds or indifference, in conjunction with the growing influence of business values throughout American life, has led in recent decades to the development of the doctrine of corporate social responsibility (CSR—sometimes also referred to as corporate citizenship).
Difficulty: 1 Easy Topic: Corporate Social Responsibility Learning Objective: 03-06 Explain the concept of corporate social responsibility. Bloom’s: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation
12) The idea of social responsibility is a movement in which decision makers take actions to protect and improve the welfare of society as a whole along with their own interests.
Answer: TRUE Explanation: The sweeping notion of corporate social responsibility is not readily reduced to a brief definition, but Davis and Blomstrom some years ago captured the core ingredients: “The idea of social responsibility is that decision makers are obligated to take actions which protect and improve the welfare of society as a whole along with their own interests.” Difficulty: 1 Easy Topic: Corporate Social Responsibility Learning Objective: 03-06 Explain the concept of corporate social responsibility. Bloom’s: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation
13) According to Milton Friedman, the firm that maximizes its profits is necessarily maximizing its contribution to the society.
Answer: TRUE
Explanation: Milton Friedman, employing free-market reasoning, believed a firm that maximizes its profits is necessarily maximizing its contribution to society. Furthermore, he argued that any dilution of the profit-maximizing mode—such as charitable contributions—is a misuse of the stockholders’ resources. Difficulty: 1 Easy Topic: Corporate Social Responsibility Learning Objective: 03-06 Explain the concept of corporate social responsibility. Bloom’s: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation
14) When managers are pushed to adopt a bigger and broader conception of social responsibility, the chances of establishing a sustainable, enduring global community where resources are not dangerously depleted or damaged are maximized.
Answer: TRUE Explanation: Managers are being pushed to adopt a bigger, broader conception of social responsibility, an approach that will produce a sustainable, enduring global community where the resources are not dangerously depleted or damaged. The triple bottom-line/sustainability approach employs free-market principles and recognizes the necessity for financial success but also argues that social and environmental responsibilities are of equal importance. Difficulty: 1 Easy Topic: Corporate Social Responsibility Learning Objective: 03-07 Explain the triple bottom-line/sustainability approach to corporate citizenship. Bloom’s: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation
15) Triple bottom-line advocates call for managerial practices that respect and measure a firm’s social and environmental performance more than the firm’s financial performance.
Answer: FALSE Explanation: Triple bottom-line advocates specifically call for managerial and accounting practices that respect and measure a firm’s social and environmental performance just as the firm’s financial performance is respected and measured. The goal is to ensure the long-term viability, or sustainability, of the organization and the total society. Difficulty: 1 Easy Topic: Corporate Social Responsibility Learning Objective: 03-07 Explain the triple bottom-line/sustainability approach to corporate citizenship. Bloom’s: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation
16) The primary goal of the triple bottom-line approach is to employ free market principles that allow for financial success as well as social and environmental success.
Answer: TRUE Explanation: The goal of the triple bottom-line approach is to ensure the long-term viability, or sustainability, of an organization and the total society. Triple bottom-line advocates specifically call for managerial and accounting practices that respect and measure a firm’s social and environmental performance just as the firm’s financial performance is respected and measured. Difficulty: 1 Easy Topic: Corporate Social Responsibility Learning Objective: 03-07 Explain the triple bottom-line/sustainability approach to corporate citizenship. Bloom’s: Remember
AACSB: Analytical Thinking Accessibility: Keyboard Navigation
17) Social Accountability Accreditation Services accredits companies that meet the Social Accountability 8000 standards in the area of increased financial accountability.
Answer: FALSE Explanation: Social Accountability Accreditation Services in New York City accredits companies that meet the SA8000 standards in the areas of child labor, forced labor, health and safety, freedom of association, discrimination, disciplinary practices, working hours, collective bargaining wages, and management systems. Difficulty: 1 Easy Topic: Stakeholder Approach Learning Objective: 03-09 Contrast the stakeholder and shareholder approaches to corporate social responsibility. Bloom’s: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 18) According to shareholder advocates, maximizing the financial interests of the shareholders of a corporation, would satisfy a corporation’s social duties.
Answer: TRUE Explanation: Corporations are increasingly considering what scholars have labeled the stakeholder model of social responsibility. To stakeholder advocates, simply maximizing the interests of the primary stakeholders, that is, the shareholders, would not satisfy the corporation’s social duties. Difficulty: 1 Easy Topic: Stakeholder Approach Learning Objective: 03-09 Contrast the stakeholder and shareholder approaches to corporate social responsibility.
Bloom’s: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation
19) An alternative and arguably more “progressive” corporate approach to stakeholders emphasizes the dominant goal of controlling all the stakeholder relationships.
Answer: FALSE Explanation: An alternative and arguably more “progressive” approach to stakeholders involves a collaborative strategy in which stakeholder relationships are regarded as being mutually defined, cooperative, and reciprocal. The firm endeavors to understand and balance the interests and needs of all stakeholders with the view that this collaborative effort results in enhanced firm performance over the long term while building a healthier society. Difficulty: 1 Easy Topic: Stakeholder Approach Learning Objective: 03-09 Contrast the stakeholder and shareholder approaches to corporate social responsibility. Bloom’s: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 20) The garment factory collapse in Dhaka, Bangladesh, illustrates all the following concerns except 1. 2.
A) American corporations’ opportunity to find cheap, powerless labor abroad. B) the outsourcing of good, high-paid factory jobs from the United States to lessdeveloped countries. 3. C) people purchasing less technologically advanced goods. 4. D) real wages for blue-collar workers remaining almost unchanged for 35 years.
Answer: C Explanation: The garment factory tragedy illustrates the critics’ worry that global free trade is merely an opportunity for America’s giant corporations to exploit cheap, powerless labor abroad. Further, the outsourcing of good, high-paid factory jobs from the United States to less developed nations has wounded the American working class.
Difficulty: 1 Easy Topic: The Corporate State—Economics Learning Objective: 03-04 Discuss concerns about globalization. Bloom’s: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation
21) Which of the following is a highly controversial 5–4 ruling by the U.S. Supreme Court in the 2010 Citizens United case? 1. A) It held that limiting corporate campaign contributions violated corporate free speech rights. 2. B) It allowed corporations to coordinate organizational fund spending with parties or candidates. 3. C) It held that limiting organizational funds for candidates standing for elections is unlawful. 4. D) It allowed corporations to lawfully donate corporate funds to parties.
Answer: A Explanation: The role of conventional political action committees (PACs) in the political process has receded in importance following a momentous U.S. Supreme Court decision in the 2010 Citizens United case. The Supreme Court’s highly controversial 5–4 ruling held that federal laws limiting corporate campaign contributions violated corporate free speech rights. Difficulty: 1 Easy Topic: The Corporate State—Politics Learning Objective: 03-02 Discuss whether business should play a more or less active role in politics, education, and other public-sector activities. Bloom’s: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation
22) Which of the following is an impact of the Supreme Court’s highly controversial 5–4 ruling in the 2010 Citizens United case? 1. A) The decision has permitted corporations and labor unions to coordinate organizational fund spending with parties or candidates. 2. B) The decision has recognized political spending as a direct acceptance of liberty guaranteed by the First Amendment 3. C) The decision has opened the door to gushers of personal and corporate money funneled through Independent Expenditure political action committees. 4. D) The decision has restricted corporations and labor unions from spending unlimited organizational funds for candidates.
Answer: C Explanation: Citizens United and other court decisions have allowed rapid changes in the nature of the national political process by opening the door to gushers of personal and corporate money funneled through Independent Expenditure political action committees, which are usually called Super PACs, and nonprofit 501(c)4 Social Welfare Organizations. The latter groups, such as volunteer fire departments, must be designed to serve the common good if they want to maintain their preferred Internal Revenue Service status which exempts them from paying federal income taxes on the money they raise. Difficulty: 2 Medium Topic: The Corporate State—Politics Learning Objective: 03-02 Discuss whether business should play a more or less active role in politics, education, and other public-sector activities. Bloom’s: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation
23) Which of the following statements is true of political action committees (PACs)? 1. 2. 3. 4.
A) PACs can only contribute to national elections, and not state elections. B) Corporations cannot solicit contributions from employees and shareholders. C) The money disbursed by PACs is part of the general corporate accounts. D) PACs are only supposed to collect voluntary contributions.
Answer: D Explanation: Corporate funds cannot lawfully be given directly to candidates for federal office. However, corporations, labor unions, special interest groups, and others can lawfully establish political action committees (PACs) to solicit and disburse voluntary campaign contributions.
Difficulty: 2 Medium Topic: The Corporate State—Politics Learning Objective: 03-02 Discuss whether business should play a more or less active role in politics, education, and other public-sector activities. Bloom’s: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation
24) Which of the following statements is true of corporate funds? 1.
A) Although political action committees’ contributions are voluntary, corporate employees often feel pressured to participate. 2. B) Corporations cannot solicit contributions from employees, shareholders, and others. 3. C) Corporations cannot lawfully establish political action committees to solicit and disburse voluntary campaign contributions. 4. D) Corporate funds can lawfully be given directly to candidates for federal office.
Answer: A Explanation: Corporations, labor unions, special interest groups, and others can lawfully establish political action committees (PACs) to solicit and disburse voluntary campaign contributions. Although PAC contributions are voluntary, corporate employees often feel pressured to participate. Difficulty: 2 Medium Topic: The Corporate State—Politics Learning Objective: 03-02 Discuss whether business should play a more or less active role in politics, education, and other public-sector activities. Bloom’s: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation
25) Which of the following statements is true of lobbying in the United States? 1. 2. 3. 4.
A) It is illegal for lobbyists to approach politicians. B) It is confined to the business community. C) It has a negligible effect on political decisions. D) It is an essential ingredient in big business strategy.
Answer: D Explanation: Lobbying is an essential ingredient in big business strategy. Lobbying often serves the very useful role of efficiently educating busy politicians about the vast array of issues they must address but cannot possibly master without assistance. Difficulty: 2 Medium Topic: The Corporate State—Politics Learning Objective: 03-02 Discuss whether business should play a more or less active role in politics, education, and other public-sector activities. Bloom’s: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 26) Which of the following is an argument put forth by the liberal wing of the Supreme Court in the CitizensUnited case? 1. A) Treating corporations as people in cases of political contributions would allow these organizations to further corrupt the political process. 2. B) Limiting corporate campaign contributions would violate corporate free speech rights. 3. C) The growing influence of the business community would saturate and dominate all corners of American life. 4. D) By outsourcing of good, high-paid factory jobs from the United States, corporations are fundamentally challenging and changing life in the home country.
Answer: A Explanation: Previous high court rulings had frequently recognized that First Amendment rights extend to corporations and that corporations are persons for some legal purposes. The four dissenters, from the “liberal” wing of the Court, argued that corporations and unions, in many other ways, are not treated as people and doing so in the case of political contributions could allow those organizations to dominate and further corrupt the political process. Difficulty: 2 Medium Topic: The Corporate State—Politics
Learning Objective: 03-02 Discuss whether business should play a more or less active role in politics, education, and other public-sector activities. Bloom’s: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation
27) Traditional humanist values include all the following except: 1. 2. 3. 4.
A) faith in growth. B) meaningful service to society. C) cooperation. D) individual dignity.
Answer: A Explanation: Critics contend values commonly associated with businesspeople (competition, profitseeking, reliance on technology, faith in growth) have overwhelmed traditional humanist values (cooperation, individual dignity, human rights, meaningful service to society). Warmth, decency, and value of life have been debased in the name of wealth, efficiency, and productivity. Difficulty: 1 Easy Topic: The Corporate State—Social Issues and Institutions Learning Objective: 03-05 Make a tentative assessment regarding the proper role of business in society. Bloom’s: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation
28) Free markets are more efficient decision makers than government rules. Which of the following is a result of the efficient decisions made by free markets? 1. 2. 3.
A) Gains have been made with increased global standards of living. B) National boundaries are becoming stronger. C) Financial assets have stopped flowing freely across national boundaries.
4.
D) Less developed countries have seen their standards of living decrease.
Answer: A Explanation: With the triumph of capitalism, in its various permutations, the world has come to understand that free markets usually are more efficient decision makers than government rules. As a result, national boundaries are receding in importance, technology is shrinking the globe, multinational companies are treating the world as one big marketing opportunity, less developed countries are trying to improve their living standards by connecting to that market, financial assets are flowing freely and almost instantaneously from one edge of the globe to another, and the world is becoming one highly greased, interconnected mass market. Difficulty: 2 Medium Topic: The Corporate State—Economics Learning Objective: 03-04 Discuss concerns about globalization. Bloom’s: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation
29) Which of the following statements is false of large American corporations? 1. 2.
A) Expanding corporate power may make working life change for the better. B) The colossal size of corporations threatens America’s economy rather than strengthening it. 3. C) Large corporations have could morph into “mini-states” that fill the void if governments cannot provide essential services. 4. D) The colossal size of corporations permits continuing abuse of the American public.
Answer: A Explanation: One of the critics’ concerns about expanding corporate power is the fear that working life may change for the worse. Difficulty: 2 Medium Topic: The Corporate State—Economics
Learning Objective: 03-03 List some of the critics’ primary complaints about the alleged abuse of corporate power in contemporary America. Bloom’s: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation
30) According to critics, which of the following is the impact of a concentrated economic structure? 1.
A) The government has been able to regulate powerful companies without much trouble. 2. B) Companies and industries are no longer fully responsive to market commands. 3. C) Concentrated structure has helped increase meaningful competitiveness in the American market. 4. D) A significant decrease in complaints about the corporate role in pollution have resulted.
Answer: B Explanation: To the critics, a big portion of the corporate power problem is attributable to the structure of the economy, a structure they believe to be so concentrated that many industries and companies are no longer fully responsive to market commands. Further, those industries and companies are so powerful that the government cannot meaningfully regulate them, the critics say. Difficulty: 2 Medium Topic: The Corporate State—Economics Learning Objective: 03-03 List some of the critics’ primary complaints about the alleged abuse of corporate power in contemporary America. Bloom’s: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation
31) Which of the following statements is true about advertising in schools? 1.
A) It is likely to discourage critical thinking.
2. 3. 4.
B) It is likely to discourage materialism. C) It is likely to celebrate reliable values. D) It is likely to advocate criminal behavior.
Answer: A Explanation: Critics worry that advertising in school settings encourages materialism, celebrates dubious values, and discourages critical thinking. Faced with public resistance to increased school funding, administrators in many school districts are selling ad space on school buses, websites, buildings, textbook covers, and even report cards. Difficulty: 2 Medium Topic: The Corporate State—Economics Learning Objective: 03-03 List some of the critics’ primary complaints about the alleged abuse of corporate power in contemporary America. Bloom’s: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation
32) Which of the following does not describe the historical view of business responsibilities through the first half of the twentieth century? 1.
A) Businesses were largely exempt from any affirmative duty of the resolution of social problems. 2. B) Businesses were expected to give close accounting attention to their social and environmental performance as well as financial performance. 3. C) The conception of corporate duty was narrow. 4. D) The duty of businesses was the production and distribution of the best products and services at the lowest possible prices.
Answer: B Explanation: Historically, business was expected to concentrate on one goal—the production and distribution of the best products and services at the lowest possible prices. Business was largely exempt from any affirmative duty for the resolution of social problems until the 1950s when business scholars and critics began to encourage a broader conception of corporate duty. Profit-seeking was central and essential while the sometimes awkward ingredient of social responsibility was not a consideration. Difficulty: 2 Medium
Topic: Introduction Learning Objective: 03-06 Explain the concept of corporate social responsibility. Bloom’s: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation
33) According to the free market view, which of the following is considered the best measure of social responsibility? 1. 2. 3. 4.
A) Social and environmental performance B) Profit maximization C) Triple bottom line/sustainability D) Long-term company interest
Answer: B Explanation: The free-market view holds that profit maximization is the best measure of social responsibility. The triple bottom-line/sustainability movement calls for a revolutionary re-visioning of corporate goals and practices such that profit maximization is only one of three key measures of success. Difficulty: 2 Medium Topic: Corporate Social Responsibility Learning Objective: 03-06 Explain the concept of corporate social responsibility. Bloom’s: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation
34) Which of the following falls under the “desired” category of Carroll’s Social Responsibility Pyramid? 1.
A) Economic responsibilities
2. 3. 4.
B) Legal responsibilities C) Ethical responsibilities D) Philanthropic responsibilities
Answer: D Explanation: Philanthropic responsibilities fall under the “desired” category of Carroll’s Social Responsibility Pyramid. In striving for profitable, lawful, ethical conduct, a company may also choose to engage in discretionary philanthropic (charitable) efforts—money, time, facilities, programs—to build a better community. Difficulty: 1 Easy Topic: Corporate Social Responsibility Learning Objective: 03-06 Explain the concept of corporate social responsibility.; 03-07 Explain the triple bottom-line/sustainability approach to corporate citizenship. Bloom’s: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation
35) Which of the following is a view professed by Nobel prize–winning economist Milton Friedman? 1.
A) Socially responsible behavior, within reasonable bounds, is simply the “right thing” to do. 2. B) A strong bottom line, in many cases, requires considerations beyond the immediate, short-run, profit-maximizing interests of a firm. 3. C) Any dilution of the profit-maximizing mode—such as charitable contributions— is a misuse of the stockholders’ resources. 4. D) In the environmental domain, sustainability will require attention to energy efficiency, waste minimization, recycling, and the total ecological agenda.
Answer: C Explanation: Milton Friedman, employing free-market reasoning, believed the firm that maximizes its profits is necessarily maximizing its contribution to society. Furthermore, he argued that any dilution of the profit-maximizing mode—such as charitable contributions—is a misuse of the stockholders’ resources. Difficulty: 2 Medium
Topic: Corporate Social Responsibility Learning Objective: 03-06 Explain the concept of corporate social responsibility. Bloom’s: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 36) Which of the following statements is true of shared value advocates? 1.
A) They believe that an entrepreneurial, profit-seeking, and capitalist approach is the most beneficial way to correct social problems. 2. B) They believe that nonprofit organizations are the most powerful institutions for creating shared value among the members of the society. 3. C) They expect businesses to recognize that they must transcend philanthropy, good citizenship, and sustainability to create products and services that create economic and social value. 4. D) They agree that capitalism enhances an economic competitiveness because of its ability to maximize shared social norms.
Answer: C Explanation: Shared value advocates see businesses as the most powerful institutions for social change, but they also expect those businesses to recognize that their goal must be creating shared value rather than merely profit. Low-cost cell phones, for example, can be profitable while serving poorer populations. Difficulty: 2 Medium Topic: Corporate Social Responsibility Learning Objective: 03-06 Explain the concept of corporate social responsibility.; 03-08 Discuss whether socially responsible business is “good business.” Bloom’s: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation
37) Which of the following falls under the “expected” category of Carroll’s Social Responsibility Pyramid?
1. 2. 3. 4.
A) Legal responsibilities B) Ethical responsibilities C) Philanthropic responsibilities D) Economic responsibilities
Answer: B Explanation: Ethical responsibilities fall under the “expected” category of Carroll’s Social Responsibility Pyramid. Socially responsible business practice necessarily begins at the foundation of the pyramid with the duty to make a profit in a lawful fashion. At the same time, the socially responsible firm moves (up the pyramid) beyond the fundamental demands of economics and law to pursue the ethical course of action—that behavior which is best suited to the demands of virtue and moral principle. Difficulty: 1 Easy Topic: Corporate Social Responsibility Learning Objective: 03-06 Explain the concept of corporate social responsibility.; 03-07 Explain the triple bottom-line/sustainability approach to corporate citizenship. Bloom’s: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 38) Which of the following statements is true of Carroll’s Social Responsibility Pyramid? 1.
A) A company’s primary responsibility involves engagement in philanthropic endeavors. 2. B) A firm’s economic responsibilities should be limited to breaking even, and all profit should be invested in the community. 3. C) A company’s social responsibility begins with making a lawful profit. 4. D) A socially responsible firm would focus primarily on its discretionary and ethical responsibilities and would minimize its focus on economic gain.
Answer: C Explanation: Socially responsible business practice necessarily begins at the foundation of the pyramid with the duty to make a profit in a lawful fashion. At the same time, the socially responsible firm moves (up the pyramid) beyond the fundamental demands of economics and law to pursue the ethical course of action—the behavior best suited to the demands of virtue and moral principle. In striving for profitable, lawful, ethical conduct, that company may also choose to engage in discretionary philanthropic (charitable) efforts—money, time, facilities, programs—to build a better community. Difficulty: 1 Easy
Topic: Corporate Social Responsibility Learning Objective: 03-06 Explain the concept of corporate social responsibility.; 03-07 Explain the triple bottom-line/sustainability approach to corporate citizenship. Bloom’s: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation
39) An organization that contributes resources to the community and strives to improve the quality of life for the community is most likely fulfilling the discretionary ________ of Carroll’s Social Responsibility Pyramid. 1. 2. 3. 4.
A) legal responsibilities B) economic responsibilities C) ethical responsibilities D) philanthropic responsibilities
Answer: D Explanation: An organization that contributes resources to the community and strives to improve the quality of life for the community is most likely fulfilling the discretionary philanthropic responsibilities of Carroll’s Social Responsibility Pyramid. Socially responsible business practice necessarily begins at the foundation of the pyramid with the duty to make a profit in a lawful fashion. At the same time, the socially responsible firm moves (up the pyramid) beyond the fundamental demands of economics and law to pursue the ethical course of action—that behavior which is best suited to the demands of virtue and moral principle. Difficulty: 1 Easy Topic: Corporate Social Responsibility Learning Objective: 03-06 Explain the concept of corporate social responsibility.; 03-07 Explain the triple bottom-line/sustainability approach to corporate citizenship. Bloom’s: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation
40) From a profit maximization point of view, the only responsible and moral course of behavior is to 1. 2. 3. 4.
A) use its profits to maximize social good. B) use a portion of profits for social benefits. C) dilute the profit-maximizing mode in an effort to promote worker well-being. D) engage in activities that reap the highest return possible .
Answer: D Explanation: From a profit maximization point of view, the only responsible and moral course of behavior is to reap the highest return possible, within the law. Nobel prize–winning economist Milton Friedman was the most prominent advocate of the profit maximization view. Difficulty: 1 Easy Topic: Corporate Social Responsibility Learning Objective: 03-06 Explain the concept of corporate social responsibility. Bloom’s: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation
41) A firm that adopts the triple bottom-line approach 1.
A) focuses on the legal, economic, and ethical responsibilities of Carroll’s Social Responsibility Pyramid and does not consider discretionary responsibilities. 2. B) considers its social and environmental responsibilities as important as its financial responsibilities. 3. C) does not follow free-market principles in its approach to shareholder values. 4. D) believes there is only one social responsibility of business—to use its resources to engage in activities designed to increase its profits.
Answer: B Explanation: Triple bottom-line advocates specifically call for managerial and accounting practices that respect and measure a firm’s social and environmental performance just as the firm’s financial performance is respected and measured. According to sustainability advocates, corporations giving close attention to both social and economic duties have a powerful competitive advantage that will contribute to organizational and societal sustainability.
Difficulty: 2 Medium Topic: Corporate Social Responsibility Learning Objective: 03-07 Explain the triple bottom-line/sustainability approach to corporate citizenship.; 03-08 Discuss whether socially responsible business is “good business.” Bloom’s: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation
42) Which of the following statements is true of the triple bottom-line approach? 1.
A) The only responsible and moral course of behavior is to reap the highest return possible, within the law. 2. B) Financial success is necessary, but social and environmental responsibilities are of equal importance, and corporations paying attention to those social and economic duties will contribute to both organizational and societal sustainability. 3. C) The goal of business is to ensure the short-term viability of an organization’s plans as organizational priorities change with time. 4. D) Businesses have only one social responsibility—to use their resources and engage in activities designed to increase their profits, so long as they stay within the rules of the game, which is to say, engage in open and free competition, without deception or fraud.
Answer: B Explanation: The triple bottom-line/sustainability approach employs free-market principles and recognizes the necessity for financial success but also argues that social and environmental responsibilities are of equal importance. According to sustainability advocates, corporations giving close attention to both social and economic duties have a powerful competitive advantage that will contribute to organizational and societal sustainability. Difficulty: 2 Medium Topic: Corporate Social Responsibility Learning Objective: 03-07 Explain the triple bottom-line/sustainability approach to corporate citizenship. Bloom’s: Understand
AACSB: Analytical Thinking Accessibility: Keyboard Navigation 43) Digi V, an electronics company, focuses on striking a balance between its profits and its responsibility toward the environment. It uses biodegradable substances to manufacture its products and over the years has attracted many loyal customers who are concerned about the environment. The strategy used by Digi V is an example of the 1. 2. 3. 4.
A) monopolistic approach. B) shareholder approach. C) profit maximization approach. D) triple bottom-line approach.
Answer: D Explanation: The strategy used by Digi V is an example of the triple bottom-line approach. The triple bottom-line advocates specifically call for managerial and accounting practices that respect and measure the firm’s social and environmental performance just as the firm’s financial performance is respected and measured. Difficulty: 2 Medium Topic: Corporate Social Responsibility Learning Objective: 03-07 Explain the triple bottom-line/sustainability approach to corporate citizenship. Bloom’s: Apply AACSB: Reflective Thinking Accessibility: Keyboard Navigation
44) Which of the following best defines the stakeholders of a corporation? 1. 2. 3.
A) All those who stand to gain from the corporation’s success B) All those who have invested financially in the corporation’s activities C) All the groups that may significantly affect the corporation’s performance or be affected by it 4. D) All those whose livelihood depends directly on the corporation itself
Answer: C
Explanation: Corporations are increasingly considering what scholars have labeled the stakeholder model of social responsibility. Under that model, the corporation identifies all the groups— stockholders, customers, employees, communities, governments, unions, schools, and the like—that may significantly affect the firm’s performance or be affected by it. Difficulty: 1 Easy Topic: Stakeholder Approach Learning Objective: 03-09 Contrast the stakeholder and shareholder approaches to corporate social responsibility. Bloom’s: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 45) Which of the following statements is true of a company that adopts the stakeholder approach? 1.
A) For a company adopting the stakeholder approach, profit depends on the interplay between the corporation, government, and society. 2. B) For a company adopting the stakeholder approach, the only stakeholders are shareholders, officers, and employees. 3. C) For a company adopting the stakeholder approach, its branches around the globe comprise its principal method of profit maximization. 4. D) For a company adopting the stakeholder approach, the only concern is to fulfill the categories of economic and legal responsibilities of Carroll’s Social Responsibility Pyramid by earning a profit in a lawful fashion.
Answer: A Explanation: For a company adopting the stakeholder approach, profit depends on the interplay between the corporation, government, and society. A. G. Lafley, Procter & Gamble executive chair and two-time former CEO, has personally embraced the stakeholder practice and recognizes that profit now rests not merely in providing the best product or service at the lowest price, but also in understanding and dealing with the complex interplay among the corporation, government, and society. Thus, today’s manager is likely to be increasingly involved in identifying and addressing social issues and stakeholder concerns. Difficulty: 2 Medium Topic: Stakeholder Approach Learning Objective: 03-09 Contrast the stakeholder and shareholder approaches to corporate social responsibility. Bloom’s: Understand
AACSB: Analytical Thinking Accessibility: Keyboard Navigation
46) Which of the following is the first global standard which measures companies’ social and environmental records? 1. 2. 3. 4.
A) The North American Free Trade Agreement B) The International Organization of Standardization 9000 C) The Social Accountability 8000 D) The Environmental Auditing Standards
Answer: C Explanation: Assessing the success of social responsibility efforts is very difficult, but various measurement systems have emerged including, most prominently, Social Accountability 8000 (SA8000), the first global standard measuring companies’ social and environmental records. Social Accountability Accreditation Services in New York City accredits companies that meet the SA8000 standards in the areas of child labor, forced labor, health and safety, freedom of association, discrimination, disciplinary practices, working hours, collective bargaining wages, and management systems. Difficulty: 1 Easy Topic: Stakeholder Approach Learning Objective: 03-09 Contrast the stakeholder and shareholder approaches to corporate social responsibility. Bloom’s: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 47) A company that adopts the shareholder approach to business would be most likely to make ________ its top priority. 1. 2. 3. 4.
A) profit B) employee welfare C) sustainability D) social responsibility
Answer: A
Explanation: Stakeholder theory and corporate social performance have gained great credibility with academics and many managers. Others, however, argue that profits and shareholders must remain the consuming concerns of management, and that a skilled focus on the bottom line will, incidentally but inevitably, result in the greatest good for society. That is, the company that maximizes its profits necessarily does not only what is best for its shareholders but also what is best for society generally. Difficulty: 1 Easy Topic: Shareholder Approach Learning Objective: 03-09 Contrast the stakeholder and shareholder approaches to corporate social responsibility. Bloom’s: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation
48) Discuss political action committees (PACs) in the context of corporations.
Answer: Corporate funds cannot lawfully be given directly to candidates for federal office. However, corporations, labor unions, special interest groups, and others can lawfully establish political action committees (PACs) to solicit and disburse voluntary campaign contributions. That is, corporations can solicit contributions from employees, shareholders, and others. That money is then put in a fund, carefully segregated from general corporate accounts, and disbursed by the PAC in support of a political agenda preferred by officers, managers, or shareholders. Although PAC contributions are voluntary, corporate employees often feel pressured to participate. Difficulty: 2 Medium Topic: The Corporate State—Politics Learning Objective: 03-02 Discuss whether business should play a more or less active role in politics, education, and other public-sector activities. Bloom’s: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation
49) Explain how globalization has brought new challenges, particularly for the wealthy, powerful Western garment manufacturers who profit from cheap labor in less developed countries.
Answer: When the Rana Plaza eight-story garment factory collapsed outside Dhaka, Bangladesh, on April 24, 2013, more than 1,100 workers were killed, but perhaps a new global awareness of sweatshop working conditions and careless, if not abusive, international supply chains may have emerged. The collapse was one in a long line of accidents and fires in the Bangladeshi garment industry that provides desperately-needed jobs but is caught in a race to the bottom to provide the globe’s cheapest labor. Our tightly-interconnected, highly efficient global supply systems have brought millions of jobs, substantial capital, and vital first steps on a path toward prosperity for currently struggling nations such as Bangladesh. But globalization of the garment industry and many others has also brought new challenges, particularly for the wealthy, powerful Western manufacturers who profit spectacularly from cheap labor in less developed nations. Major brands such as Gap, H&M, and Walmart are among the many that are supplied by garment factories in Bangladesh. Two apparel groups, a largely European collective including H&M and an American group headed by Walmart and The Gap, have made some progress toward justice. Difficulty: 2 Medium Topic: The Corporate State—Economics Learning Objective: 03-04 Discuss concerns about globalization. Bloom’s: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation
50) “The power of the business community has become so encompassing that virtually all dimensions of American life have absorbed elements of the business ethic.” Explain.
Answer: Values commonly associated with businesspeople—competition, profit-seeking, reliance on technology, faith in growth—have overwhelmed traditional humanist values—cooperation, individual dignity, human rights, and meaningful service to society. Warmth, decency, and value of life have been debased in the name of wealth, efficiency, and productivity. Difficulty: 2 Medium
Topic: The Corporate State—Social Issues and Institutions Learning Objective: 03-05 Make a tentative assessment regarding the proper role of business in society. Bloom’s: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 51) Give a brief account of the corporate social responsibility practice in the American way of life.
Answer: The business community is intensely criticized. That broadly shared perception of business misdeeds or indifference, in conjunction with the growing influence of business values throughout American life, has led in recent decades to the development of the doctrine of corporate social responsibility (CSR—sometimes also referred to as corporate citizenship).The issue can be expressed in this way: Must business decision making include consideration not merely of the welfare of the firm but of society as a whole? For most contemporary readers, the answer is selfevident—of course business bears a social responsibility. Business has enjoyed a central and favored role in American life. As such, it must assume a measure of the burden for the welfare of the total society. Indeed, businesspeople themselves now generally endorse businesses’ responsibility to help solve society’s problems. Similar philosophies such as the triple bottom line, which refers to giving close accounting attention to social and environmental performance as well as financial performance, and the sustainable corporation—operating the business with a focus on environmentally sensitive practices that will husband scarce resources and maintain a healthy community now and in the future—have powerful appeal to many students and managers. Difficulty: 2 Medium Topic: The Corporate State—Social Issues and Institutions Learning Objective: 03-05 Make a tentative assessment regarding the proper role of business in society. Bloom’s: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation
Law, Business and Society, 12e (McAdams) Chapter 5 Constitutional Law and the Bill of Rights
1) Articles I, II, and III, as well as the 14th Amendment, address the relationship between the federal government and the states.
Answer: FALSE Explanation: Articles IV and VI, as well as the 14th Amendment, address the relationship between the federal government and the states. Article VI provides in Clause 2 (the Supremacy Clause) for the supremacy of federal law over state law. Difficulty: 1 Easy Topic: Structure and Purpose Learning Objective: 05-01 Recognize the purposes of the U.S. Constitution. Bloom’s: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation
2) The Constitution protects citizens from purely private concentrations of power, such as large corporations.
Answer: FALSE Explanation: The Constitution does not protect citizens from purely private concentrations of power, such as large corporations. In fact, corporations themselves are often entitled to the protections of the Constitution. Difficulty: 1 Easy Topic: Structure and Purpose Learning Objective: 05-01 Recognize the purposes of the U.S. Constitution. Bloom’s: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation
3) Congressional authority is not formally limited to certain enumerated powers. That authority is allowed to expand or contract as society demands.
Answer: FALSE Explanation: Congressional authority is formally limited to certain enumerated powers (Article I, Section 8), such as the authority to regulate commerce. The 10th Amendment provides that all power not expressly accorded to the federal government in the Constitution resides in the states or the people. Difficulty: 1 Easy Topic: Structure and Purpose Learning Objective: 05-01 Recognize the purposes of the U.S. Constitution.; 05-02 Describe the separation of powers under the U.S. Constitution. Bloom’s: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation
4) The 10th Amendment provides that all power not expressly accorded to the federal government in the Constitution resides in the states or the people.
Answer: TRUE Explanation: The 10th Amendment provides that all power not expressly accorded to the federal government in the Constitution resides in the states or the people. Certain constitutional checks or restraints, including the Bill of Rights, limit how far Congress can reach even within its enumerated powers. Difficulty: 1 Easy Topic: Structure and Purpose Learning Objective: 05-01 Recognize the purposes of the U.S. Constitution. Bloom’s: Remember
AACSB: Analytical Thinking Accessibility: Keyboard Navigation
5) The Supreme Court and inferior courts have the ability to use judicial review.
Answer: TRUE Explanation: The Supreme Court and the inferior courts have judicial authority at the federal level. The President, Congress, and the courts each have specialized areas of authority, as provided for by the Constitution. Congress has the sole power to legislate at the federal level, whereas the President, among other responsibilities, executes laws, makes treaties, and commands the armed forces. Difficulty: 1 Easy Topic: Structure and Purpose Learning Objective: 05-01 Recognize the purposes of the U.S. Constitution.; 05-02 Describe the separation of powers under the U.S. Constitution. Bloom’s: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation
6) Corporations enjoy First Amendment rights in that they have the ability to spend more freely on elections.
Answer: TRUE Explanation: The 2010 Citizens United decision allowing corporations to spend more freely on elections (discussed previously in Chapter 3) has increased corporation’s free speech rights under the First Amendment. Difficulty: 1 Easy Topic: The First Amendment
Learning Objective: 05-05 Discuss the differences between First Amendment protections of commercial speech versus political speech. Bloom’s: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation
7) The Constitution divides governmental power between the federal and state governments.
Answer: TRUE Explanation: The Constitution divides governmental power between the federal and state governments. Congressional authority is formally limited to certain enumerated powers such as the authority to regulate commerce (Article I, Section 8). Difficulty: 1 Easy Topic: Structure and Purpose Learning Objective: 05-01 Recognize the purposes of the U.S. Constitution. Bloom’s: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation
8) Article II establishes the court system.
Answer: FALSE Explanation: Article I creates Congress, Article II sets up the executive branch, headed by the president, and Article III establishes the court system. Difficulty: 1 Easy
Topic: Structure and Purpose Learning Objective: 05-01 Recognize the purposes of the U.S. Constitution. Bloom’s: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation
9) Article I provides in Clause 3 for the supremacy of federal law over state law.
Answer: FALSE Explanation: Article VI provides in Clause 2 (the Supremacy Clause) for the supremacy of federal law over state law. Articles IV and VI, as well as the 14th Amendment, address the relationship between the federal government and the states. Difficulty: 1 Easy Topic: Structure and Purpose Learning Objective: 05-01 Recognize the purposes of the U.S. Constitution. Bloom’s: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation
10) The Due Process Clause of the 14th Amendment incorporates the personal freedoms guaranteed by the Bill of Rights and protects them against intrusion by the federal government.
Answer: FALSE Explanation: The Bill of Rights protects our personal freedoms (speech, religion, right to assemble, the right of the people to be secure in their persons, houses, papers, and effects, and more) from encroachment by the federal government. Furthermore, the Supreme Court has ruled that the Due
Process Clause of the 14th Amendment, which is directed at the states, absorbs or incorporates those fundamental freedoms and protects them against intrusion by state governments. Difficulty: 1 Easy Topic: Structure and Purpose; The Constitution, the Bill of Rights, and Business Learning Objective: 05-01 Recognize the purposes of the U.S. Constitution.; 05-03 Describe the powerful role the Bill of Rights plays in protecting personal freedom. Bloom’s: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation
11) According to the First Amendment, government may neither encourage nor discourage the practice of religion generally, nor may it give preference to one religion over another.
Answer: TRUE Explanation: The First Amendment forbids (1) the establishment of an official state religion (the Establishment Clause) and (2) undue state interference with religious practice (the Free Exercise Clause). Government may neither encourage nor discourage the practice of religion generally, nor may it give preference to one religion over another. Difficulty: 1 Easy Topic: The First Amendment Learning Objective: 05-04 Identify the freedoms protected under the First Amendment. Bloom’s: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 12) Freedom of speech is not absolute.
Answer: TRUE
Explanation: Freedom of speech is not absolute. Clearly, we cannot freely make slanderous statements about others, publicly utter obscenities at will, speak “fighting words” that are likely to produce a clear and present danger of violence, or yell “Fire” in a crowded theater. Difficulty: 1 Easy Topic: The First Amendment Learning Objective: 05-04 Identify the freedoms protected under the First Amendment. Bloom’s: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation
13) Freedom of religion is the primary guarantor of the American approach to life.
Answer: FALSE Explanation: Freedom of speech is the primary guarantor of the American approach to life. Not only is it indispensable to democracy and personal dignity, but Americans believe that the free expression of ideas is the most likely path to the best ideas. Difficulty: 1 Easy Topic: The First Amendment Learning Objective: 05-04 Identify the freedoms protected under the First Amendment. Bloom’s: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 14) The defense of the First Amendment is available to government employees who speak out “pursuant to their official duties.”
Answer: FALSE Explanation: Government employees’ free speech rights are substantially limited on the job. The U.S. Supreme Court in 2006 ruled that government employees who speak out “pursuant to their official duties” are speaking as employees, not citizens, and therefore are not protected by the First Amendment, from discipline, regardless of the content of their message. The Court pointed to the government’s need for efficiency and order in its workplace. In 2014, the United States Supreme Court clarified that public workers act as citizens when they testify under oath; therefore, the First Amendment protects them from retaliation based on their testimony. Difficulty: 2 Medium Topic: The First Amendment Learning Objective: 05-04 Identify the freedoms protected under the First Amendment. Bloom’s: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation
15) Commercial speech receives greater protection under the Constitution than political speech.
Answer: FALSE Explanation: In 1942, the U.S. Supreme Court ruled that commercial speech was not entitled to First Amendment protection. Subsequently, the Court changed its stance and extended First Amendment rights to commercial speech, but those rights were much more limited than for political speech. Difficulty: 2 Medium Topic: The First Amendment Learning Objective: 05-05 Discuss the differences between First Amendment protections of commercial speech versus political speech. Bloom’s: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation
16) A search warrant issued by a judge is generally necessary to comply with the Constitution in making a narcotics search.
Answer: TRUE Explanation: In general, a search warrant issued by a judge is necessary to comply with the Constitution in making a narcotics search. A warrantless search is permissible, however, where reasonable, as in association with an arrest or where probable cause exists to believe a drug-related crime has been committed but circumstances make securing a warrant impracticable. Difficulty: 1 Easy Topic: The Fourth Amendment Learning Objective: 05-07 Explain the “exclusionary rule.” Bloom’s: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation
17) A police officer may secure drugs that have been abandoned or that are in plain view even if a warrant has not been obtained.
Answer: TRUE Explanation: Incident to an arrest, a search may lawfully include the person, a car, and the immediate vicinity of the arrest. Furthermore, a police officer may lawfully secure drugs that have been abandoned or that are in plain view even though a warrant has not been obtained. Difficulty: 1 Easy Topic: The Fourth Amendment Learning Objective: 05-07 Explain the “exclusionary rule.” Bloom’s: Remember AACSB: Analytical Thinking
Accessibility: Keyboard Navigation 18) The Fourth Amendment prohibits all warrantless searches.
Answer: FALSE Explanation: In general, a search warrant issued by a judge is necessary to comply with the Constitution in making a narcotics search. According to the Fourth Amendment, a warrantless search is permissible, however, where reasonable, as in association with an arrest or where probable cause exists to believe a drug-related crime has been committed but circumstances make securing a warrant impracticable. Difficulty: 1 Easy Topic: The Fourth Amendment Learning Objective: 05-06 Describe some of the issues arising under the Fourth Amendment “search and seizure” rules. Bloom’s: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation
19) Regulatory takings normally do not require government compensation.
Answer: TRUE Explanation: Regulatory takings, whether temporary or permanent, normally do not require government compensation because doing so would severely impair the state’s ability to govern in an orderly manner. Nonetheless, in recent years the courts have been more aggressive about requiring just compensation for some regulatory takings. Difficulty: 1 Easy Topic: The Fifth Amendment
Learning Objective: 05-08 Describe the law of the Fifth Amendment “Takings Clause” and the property rights controversy associated with it. Bloom’s: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 20) Which of the following statements is true of Article II of the United States Constitution? 1.
A) It establishes a legislative branch (Congress) with limited and specifically enumerated powers. 2. B) It creates a judicial branch of the federal government. 3. C) It addresses the relationship between the federal government and the states. 4. D) It sets up the executive branch of the federal government, headed by the president.
Answer: D Explanation: Article II of the United States Constitution creates the executive branch of the federal government, headed by the president. Article I of the United States Constitution establishes a legislative branch of the government (Congress) and specifically enumerates its powers. Article I, Section 8, Clause 3 is particularly important because it gives Congress the power to regulate commerce (the Commerce Clause). Article III creates the judicial branch of the federal government and establishes the United States Supreme Court. Difficulty: 2 Medium Topic: Structure and Purpose Learning Objective: 05-02 Describe the separation of powers under the U.S. Constitution. Bloom’s: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation
21) Which of the following provides for amendments to the Constitution? 1.
A) Article VI
2. 3. 4.
B) Article V C) Article IV D) Article IIII
Answer: B Explanation: Article V provides for amendments to the Constitution. The first 10 amendments, known as the Bill of Rights, were ratified by the states and put into effect in 1791. Difficulty: 1 Easy Topic: Structure and Purpose Learning Objective: 05-01 Recognize the purposes of the U.S. Constitution. Bloom’s: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 22) Article I, Section 8, Clause 3 of the Constitution provides for which of the following? 1. 2. 3.
A) It protects citizens from private concentrations of power. B) It prohibits the establishment of religion. C) It gives the Supreme Court the power to forbid the undue state interference with religion. 4. D) It gives Congress the power to regulate commerce.
Answer: D Explanation: Article I creates Congress and enumerates its powers. Article I, Section 8, Clause 3 is particularly important because it gives Congress the power to regulate commerce (the Commerce Clause) among the several states and with the Indian Tribes. Difficulty: 2 Medium Topic: Structure and Purpose Learning Objective: 05-01 Recognize the purposes of the U.S. Constitution. Bloom’s: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation
23) Which of the following sets up the executive branch, headed by the president? 1. 2. 3. 4.
A) Article II B) Article I C) Article III D) Article IV
Answer: A Explanation: Article I creates Congress, Article II sets up the executive branch, headed by the president, and Article III establishes the court system. Articles IV and VI, as well as the 14th Amendment, address the relationship between the federal government and the states. Difficulty: 1 Easy Topic: Structure and Purpose Learning Objective: 05-01 Recognize the purposes of the U.S. Constitution. Bloom’s: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 24) Which of the following statements about the Constitution is true? 1. 2.
A) The Constitution prohibits the president from regulating commerce. B) The Constitution was formed with an intent to protect the citizenry from the government. 3. C) The Constitution allows the Supreme Court to protect the citizens from public and private concentrations of power. 4. D) The Constitution permits Congress to execute the laws that it passes.
Answer: B Explanation: Among other goals, the Constitution was designed to protect the citizenry from the government. The Constitution does not protect citizens from purely private concentrations of power, such as large corporations. Difficulty: 2 Medium
Topic: Structure and Purpose Learning Objective: 05-02 Describe the separation of powers under the U.S. Constitution. Bloom’s: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation
25) The Preamble to the United States Constitution 1.
A) identifies certain goals for our society, such as unity, justice, domestic tranquility, and liberty. 2. B) institutes the federalism principle which allows for shared power among national, state, and local governments. 3. C) establishes the executive branch, which is headed by the president, and also establishes the court system, which is headed by the Supreme Court. 4. D) establishes the Supremacy Clause which states that federal law is supreme over state law.
Answer: A Explanation: The Preamble identifies certain goals for our society, such as unity (among the various states), justice, domestic tranquility (peace), defense from outsiders, increasing general welfare, and liberty. Difficulty: 2 Medium Topic: Structure and Purpose Learning Objective: 05-01 Recognize the purposes of the U.S. Constitution. Bloom’s: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 26) Which of the following is a criticism of the historic 1803 Marbury v. Madison decision?
1.
A) The federal blueprint and campus speech codes designed to maintain safe, civil learning environments that embrace diverse cultures act as restraints and are unconstitutional, and they amount to a demand for politically correct speech. 2. B) The federal and state judicial decisions finding “constitutional right” to abortion or same-sex marriage have reduced the authority of directly elected legislators and placed too much power in the hands of jurists who are removed from the weight of public opinion 3. C) The federal departments of Justice and Education issued a “blueprint” for colleges nationwide that redefines sexual harassment to include “unwelcome conduct of sexual nature.”. 4. D) The federal and state judicial decisions regarding Title IX and its application to college campuses around the country have usurped the power of the executive.
Answer: B Explanation: Critics today argue that the Marbury reasoning has been stretched too far and that, in effect, courts have been making law, rather than merely interpreting it. Those critics say that federal and state judicial decisions finding a “constitutional right” to, for example, abortion or same-sex marriage, have reduced the authority of our directly elected legislators and placed too much power in the hands of jurists who are necessarily somewhat removed from the weight of public opinion. Difficulty: 2 Medium Topic: Structure and Purpose Learning Objective: 05-02 Describe the separation of powers under the U.S. Constitution. Bloom’s: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation
27) At one point in time, Southerners and Northerners tended to have different views of federalism. Which of the following views was held by many Southerners around the time of the Civil War? 1.
A) Each individual state should be permitted to make its own policy decisions about crucial matters such as slavery independent of the federal government. 2. B) A more unified national approach to issues such as regulation of business, educational policy, medical care, and civil rights should be taken. 3. C) The federal government had often exercised authority beyond its express constitutional powers. 4. D) Big government should be distrusted and power should be brought closer to the people.
Answer: A Explanation: The American Civil War was provoked in part because of differing conceptions of federalism. Southerners tended to hold the view, labeled state’s rights, that each state was entitled to make its own policy decisions about crucial matters such as slavery, while Northerners tended to favor a strong central government. Difficulty: 2 Medium Topic: Structure and Purpose Learning Objective: 05-02 Describe the separation of powers under the U.S. Constitution. Bloom’s: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 28) In the context of federalism, which of the following views is held by conservative Americans? 1.
A) They hold that a strong central government can fix the constitutional divide over federalism is a challenge that exists even today. 2. B) They trust big government and favor bringing power closer to the people. 3. C) They hold that the federal government has often exercised authority beyond its express constitutional powers. 4. D) They favor a more unified national approach to issues such as regulation of business, educational policy, privacy rights and foreign policy.
Answer: C Explanation: Many conservative Americans distrust big government and favor bringing power closer to the people. They think the federal government has often exercised authority beyond its express constitutional powers. In the context of federalism, liberals tend to fear local biases and favor a more unified national approach to issues such as regulation of business, educational policy, medical care, and civil rights. Difficulty: 2 Medium Topic: Structure and Purpose Learning Objective: 05-02 Describe the separation of powers under the U.S. Constitution. Bloom’s: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation
29) In the context of federalism, liberal Americans tend to hold which of the following views? 1.
A) They hold that federal government has often exercised authority beyond its express constitutional powers. 2. B) They hold that each state is entitled to make its own policy decisions about crucial matters such as slavery. 3. C) They distrust big government and favor bringing power closer to the people. 4. D) They favor a more unified national approach to issues such as regulation of business, educational policy, medical care, and civil rights.
Answer: D Explanation: In the context of federalism, liberals tend to fear local biases and favor a more unified national approach to issues such as regulation of business, educational policy, medical care, and civil rights.Conservative Americans, on the other hand, think the federal government has often exercised authority beyond its express constitutional powers. Difficulty: 2 Medium Topic: Structure and Purpose Learning Objective: 05-02 Describe the separation of powers under the U.S. Constitution. Bloom’s: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation
30) The federalism principle refers to 1.
A) the principle that the government cannot take private property without paying just compensation. 2. B) the principle that federal laws are supreme if a conflict between a federal and state law arises. 3. C) the Constitution’s provision for shared power among national, state, and local governments. 4. D) the provision for the protection of personal freedoms of speech and religion from encroachment by the government
Answer: C
Explanation: The U.S. government is built on federalism principles; that is, the Constitution provides for shared power among national, state, and local governments. A primary role of the Constitution is to balance central federal authority with dispersed state power. Difficulty: 2 Medium Topic: Structure and Purpose Learning Objective: 05-02 Describe the separation of powers under the U.S. Constitution. Bloom’s: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation
31) When attempting to weigh the interest of the states against the expressive rights of the individual, courts frequently use the ________. 1. 2. 3. 4.
A) Erga omnes principle B) balancing test C) exclusionary rule D) Ad quod damnum principle
Answer: B Explanation: A tool frequently employed by the courts is the balancing test, where the judges must try to weigh the interests of the state against the expressive rights of the individual. Difficulty: 2 Medium Topic: The First Amendment Learning Objective: 05-04 Identify the freedoms protected under the First Amendment. Bloom’s: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 32) Addressing two long-standing sources of constitutional ferment, two separate three-judge panels of the Ninth U.S. Circuit Court of Appeals in 2010 ruled that the use of the words “Under God” in the
Pledge of Allegiance and “In God We Trust” on U.S. currency do not violate the separation of church and state principles of the ________. 1. 2. 3. 4.
A) Fifth Amendment B) Fourth Amendment C) Fourteenth Amendment D) First Amendment
Answer: D Explanation: Addressing two long-standing sources of constitutional ferment, two separate threejudge panels of the Ninth U.S. Circuit Court of Appeals in 2010 ruled that the use of the words “Under God” in the Pledge of Allegiance and “In God We Trust” on U.S. currency do not violate the separation of church and state principles of the First Amendment.Indeed, the pledge was amended in 1954 to include the words “Under God,” and some members of Congress, at the time, said it was needed to distinguish the United States from “Godless Communists.” The phrase “In God We Trust” on the currency was ruled to be simply patriotic and ceremonial and having nothing to do with the establishment of religion Difficulty: 2 Medium Topic: The First Amendment Learning Objective: 05-04 Identify the freedoms protected under the First Amendment. Bloom’s: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation
33) Which of the following is true of panhandling? 1. 2. 3. 4.
A) Begging for money on the street does not constitute expression. B) The context of panhandling does not affect its constitutionality. C) The content of begging is not restricted. D) Courts do not permit restraints on aggressive panhandling.
Answer: C Explanation: Courts have consistently concluded that begging for money on the street constitutes expression. The content of the message (begging) is not restricted while authorities might lawfully shift the time, place, or manner of the expression for compelling reasons.
Difficulty: 2 Medium Topic: The First Amendment Learning Objective: 05-04 Identify the freedoms protected under the First Amendment. Bloom’s: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation
34) Which of the following is true of the Fourth Amendment? 1.
A) It forbids the government to deprive citizens of life, liberty, or property without due process of law. 2. B) It prohibits the taking of private property for public use without just compensation for the owner. 3. C) It forbids the establishment of an official state religion and undue state interference with religious practice. 4. D) It provides the right of the people to be secure in their houses against unreasonable searches and seizures shall not be violated.
Answer: D Explanation: The Fourth Amendment guarantees the right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no Warrants shall issue, but upon probable cause. . . . Difficulty: 2 Medium Topic: The Fourth Amendment Learning Objective: 05-06 Describe some of the issues arising under the Fourth Amendment “search and seizure” rules. Bloom’s: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation
35) Freedom of speech is arguably the primary guarantor of the American approach to life because it 1. 2. 3.
A) is absolute. B) is protected under the Fourth and the Fifth Amendments. C) does not permit the government to regulate the context of speech even if the regulation is an attempt to preserve a compelling state interest. 4. D) generally does not permit the government to regulate the content of speech.
Answer: D Explanation: The government cannot, for the most part, regulate the content of our speech. On the other hand, the state does have greater authority to regulate the context of that speech; that is, the state may be able to restrict where, when, and how we say certain things if that regulation is necessary to preserve compelling state interests. Difficulty: 2 Medium Topic: The First Amendment Learning Objective: 05-04 Identify the freedoms protected under the First Amendment. Bloom’s: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation
36) Which of the following is true of the Bill of Rights? 1992. A) It consists of 12 amendments (1 through 12), which were adopted at various times from 1798 to 1992. 1993. B) The Bill of Rights allows the federal government and the states to enhance their respective powers. 1994. C) It is a commercial document reflecting the economic interests of framers, which specifically allows Congress to regulate interstate commerce . 1995. D) Our personal freedoms are protected from encroachment by the federal government.
Answer: D Explanation: The Bill of Rights protects our personal freedoms (speech, religion, and more) same from encroachment by the federal government. Furthermore, the Supreme Court has ruled that the Due Process Clause of the 14th Amendment, which is directed at the states, absorbs or incorporates those fundamental freedoms and protects them against intrusion by state governments.
Difficulty: 1 Easy Topic: The Constitution, the Bill of Rights, and Business Learning Objective: 05-03 Describe the powerful role the Bill of Rights plays in protecting personal freedom. Bloom’s: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation
37) The ________ provides that, as a matter of due process, no evidence secured in violation of the Fourth Amendment may be admitted as evidence in a court of law 1. 2. 3. 4.
A) exclusionary rule B) mailbox rule C) contract bar rule D) choice of law rule
Answer: A Explanation: Certainly, the most controversial dimension of Fourth Amendment interpretation is the exclusionary rule, which provides that, as a matter of due process, evidence secured in violation of the Fourth Amendment may not be used against a defendant at trial. As ultimately applied to all courts by the 1961 U.S. Supreme Court decision in Mapp v. Ohio, we can see that the exclusionary rule can be a very effective device for discouraging illegal searches, seizures, and arrests.It does however, have the effect of freeing guilty criminals from time to time. Difficulty: 2 Medium Topic: The Fourth Amendment Learning Objective: 05-07 Explain the “exclusionary rule.” Bloom’s: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation
38) The ________ provides that the right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no Warrants shall issue, but upon probable cause. 1. 2. 3. 4.
A) Fourteenth Amendment B) Fourth Amendment C) Fifth Amendment D) First Amendment
Answer: B Explanation: The Fourth Amendment provides that the right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no Warrants shall issue, but upon probable cause. Difficulty: 1 Easy Topic: The Fourth Amendment Learning Objective: 05-06 Describe some of the issues arising under the Fourth Amendment “search and seizure” rules. Bloom’s: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation
39) Which of the following is true of the Warrant Clause of the Fourth Amendment? 1.
A) It prohibits the taking of private property for public use without “just compensation” for the owner. 2. B) It protects commercial buildings as well as private homes from unauthorized searches. 3. C) It protects private residences from unauthorized searches but not commercial buildings. 4. D) It prohibits using evidence gathered from a warrantless search in a court of law.
Answer: B Explanation: The Warrant Clause of the Fourth Amendment protects commercial buildings as well as private homes. To hold otherwise would belie the origin of that Amendment, and the American
colonial experience. . . . “[T]he Fourth Amendment’s commands grew in large measure out of the colonists’ experience with the writs of assistance . . . [that] granted sweeping power to customs officials and other agents of the king to search at large for smuggled goods.” Against this background, it is untenable that the ban on warrantless searches was not intended to shield places of business as well as of residence. Difficulty: 2 Medium Topic: The Fourth Amendment Learning Objective: 05-06 Describe some of the issues arising under the Fourth Amendment “search and seizure” rules. Bloom’s: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 40) Which of the following statements about the Fifth Amendment is true? 1. 2.
A) It guarantees individual Americans a fundamental right to bear arms. B) It forbids the establishment of an official state religion and undue state interference with religious practice. 3. C) It prohibits the taking of private property for public use without just compensation for the owner. 4. D) It provides the right for people to be secure in their houses against unreasonable searches and seizures shall not be violated.
Answer: C Explanation: The Fifth Amendment prohibits the taking of private property for public use without just compensation for the owner. In cases where owners do not want to sell, governments often use the power of eminent domain to take private property for public uses such as building highways, bike trails, and parks, while providing just compensation to the owner. Difficulty: 2 Medium Topic: The Fifth Amendment Learning Objective: 05-08 Describe the law of the Fifth Amendment “Takings Clause” and the property rights controversy associated with it. Bloom’s: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation
41) If a governmental body takes all of the economic value of a property or permanently physically invades the property, the taking requires just compensation unless the government is preventing a nuisance, or the regulation was permissible under property law at the time of the purchase of the property. This type of regulatory taking is referred to as ________. 1. 2. 3. 4.
A) mitigation B) partial taking C) exaction D) total taking
Answer: D Explanation: If a governmental body acts in a way that permanently takes all of the economic value of a property or permanently physically invades the property, the taking requires just compensation unless the government is (1) preventing a nuisance or (2) the regulation was permissible under property law at the time of the purchase of the property. This type of regulatory taking is referred to as total taking. Difficulty: 1 Easy Topic: The Fifth Amendment Learning Objective: 05-08 Describe the law of the Fifth Amendment “Takings Clause” and the property rights controversy associated with it. Bloom’s: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation
42) A situation where the government allows land development only if the owner dedicates some property interest is called a(n) ________. 1. 2. 3. 4.
A) partial taking B) exaction C) accommodation D) total taking
Answer: B
Explanation: A second class of regulatory takings involves situations where the government allows land development only if the owner dedicates some property interest (called an exaction) or money (called a mitigation or impact fee) to the government. Thus if you are developing land for housing, the city government might require that you devote a portion of that land to parks or pay a fee to help with community recreation needs. Difficulty: 1 Easy Topic: The Fifth Amendment Learning Objective: 05-08 Describe the law of the Fifth Amendment “Takings Clause” and the property rights controversy associated with it. Bloom’s: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation
43) A regulatory taking where the government allows land development only if the owner dedicates some money to the government is called a ________. 1. 2. 3. 4.
A) total taking B) ramification C) partial taking D) mitigation
Answer: D Explanation: A second class of regulatory takings involves situations where the government allows land development only if the owner dedicates some property interest (called an exaction) or money (called a mitigation or impact fee) to the government. Thus if you are developing land for housing, the city government might require that you devote a portion of that land to parks or pay a fee to help with community recreation needs. Difficulty: 1 Easy Topic: The Fifth Amendment Learning Objective: 05-08 Describe the law of the Fifth Amendment “Takings Clause” and the property rights controversy associated with it. Bloom’s: Remember
AACSB: Analytical Thinking Accessibility: Keyboard Navigation
44) Which of the following classes of regulatory takings involves situations where government may take a portion of a piece of property in order to expand roads, install a bike path, or establish a buffer zone? 1. 2. 3. 4.
A) Exactions B) Mitigations C) Partial takings D) Total takings
Answer: C Explanation: Partial takings involve situations where the government may take part of a piece of property in order to expand a road, install a bike path, or establish a buffer zone, for example. These uses are neither total takings nor exactions, but rather fall into a case-by-case analysis that, very briefly, considers the importance of the government’s goals and the extent of the burden on the property owner. Difficulty: 1 Easy Topic: The Fifth Amendment Learning Objective: 05-08 Describe the law of the Fifth Amendment “Takings Clause” and the property rights controversy associated with it. Bloom’s: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation
45) Which of the following is true regarding the Due Process Clauses? 1. 2.
A) The Due Process Clause of the 14th Amendment applies to the states. B) The Due Process Clause of the Fourth Amendment applies to the states rather than the federal government. 3. C) The Due Process Clause of the Fifth Amendment sets up the executive branch, headed by the president. 4. D) The Due Process Clauses give Congress the power to regulate commerce.
Answer: A Explanation: The Due Process Clauses of both the Fifth Amendment (applying to the federal government) and the 14th Amendment (applying to the states) forbid the government to deprive citizens of life, liberty, or property without due process of law. Difficulty: 2 Medium Topic: The 14th Amendment Learning Objective: 05-09 Compare and contrast substantive due process and procedural due process. Bloom’s: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation
46) By judicial interpretation, the 14th Amendment Due Process Clause 1.
A) forbids undue state interference with religious practice, but does allow the establishment of an official state religion under very narrow circumstances. 2. B) prohibits the taking of commercial property for public use without “just compensation” for the owner. 3. C) gives Congress the power to regulate interstate commerce among the several states. 4. D) absorbs the fundamental liberties provided for in the federal Constitution and prohibits state laws that abridge these fundamental liberties.
Answer: D Explanation: By judicial interpretation, the 14th Amendment Due Process Clause “absorbs” the fundamental liberties of the federal Constitution and prohibits state laws that abridge those fundamental liberties such as privacy. Difficulty: 2 Medium Topic: The 14th Amendment Learning Objective: 05-09 Compare and contrast substantive due process and procedural due process. Bloom’s: Understand
AACSB: Analytical Thinking Accessibility: Keyboard Navigation
47) Which of the following means that the government must provide notice and a fair hearing before taking an action that affects a citizen’s life, liberty, or property? 1. 2. 3. 4.
A) The Federalism Principle B) Total regulatory taking C) Procedural due process D) The exclusionary rule
Answer: C Explanation: Basically, procedural due process means that the government must provide a fair procedure including notice and a fair hearing before taking an action that affects a citizen’s life, liberty, or property. A fair hearing might require, among others, the right to present evidence, the right to a decision maker free of bias, and the right to appeal an adverse decision. Difficulty: 1 Easy Topic: The 14th Amendment Learning Objective: 05-09 Compare and contrast substantive due process and procedural due process. Bloom’s: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation 48) In the 2015 Obergefell v. Hodges decision, the Supreme Court cited well-established precedent that affirmed which of the following principles? 1. A) The Due Process Clause does not protect fundamental liberties such as the right to marry someone of the same sex. 2. B) Marriage is one of our fundamental liberties that is protected by the Due Process and the Equal Protection Clauses of the Fourteenth Amendment. 3. C) Marriage protects the sanctity of two-person unions when those two people are of different sexes. 4. D) The Constitution safeguards children of married opposite-sex couples while children of same-sex couples are not afforded that same protection.
Answer: B Explanation: In the 2015 Obergefell v. Hodges decision, the U.S. Supreme Court cited wellestablished precedent and affirmed that marriage is one of our fundamental liberties, and it is guaranteed to same-sex couples by the Due Process and Equal Protection Clauses of the 14th Amendment. Marriage protects the sanctity of the two-person unions, it safeguards children and families, and it protects the social order. Those principles apply equally to both opposite-sex and same-sex unions, and the denial of marriage rights to same-sex couples abridges due process of law and equal protection under the law. Difficulty: 2 Medium Topic: The 14th Amendment Learning Objective: 05-10 Identify some examples of the impact of the Equal Protection Clause on business and society. Bloom’s: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation
49) Stop and frisk laws can be constitutionally permissible if 1.
A) police can routinely stop innocent people even without suspicion that a crime will be committed in the hopes of preventing of a crime. 2. B) police are permitted to engage in racial profiling provided an arrest is made. 3. C) any racial pattern of stops reflects the disproportionate share of arrests committed by a certain group of people. 4. D) police have a reasonable suspicion that a crime has been committed.
Answer: D Explanation: The stop and frisk policy is constitutionally permissible when conducted properly. When police routinely stop innocent people without reasonable suspicion and engage in racial profiling, stop and frisk is impermissible. A racial pattern of stops could be lawful if the stops were only of criminals rather than merely people who make up the profiled group. Difficulty: 2 Medium Topic: The Fourth Amendment Learning Objective: 05-10 Identify some examples of the impact of the Equal Protection Clause on business and society. Bloom’s: Understand
AACSB: Analytical Thinking Accessibility: Keyboard Navigation
50) Substantive Due Process refers to which of the following? 1. 2.
A) Laws that arbitrarily infringe on fundamental, personal rights and liberties B) The fair procedure including notice and a fair hearing before the government can take an action that affects a citizen’s life, liberty, or property 3. C) Laws that include the right to present evidence and the right to appeal an adverse decision 4. D) The personal, fundamental freedoms that are guaranteed under the First Amendment
Answer: A Explanation: Laws that arbitrarily and unfairly infringe on fundamental personal rights and liberties such as privacy, voting, and the various freedoms specified in the Bill of Rights may be challenged on substantive due process grounds. The purpose of the law must be so compelling as to outweigh the intrusion on personal liberty. Difficulty: 2 Medium Topic: The 14th Amendment Learning Objective: 05-09 Compare and contrast substantive due process and procedural due process. Bloom’s: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation
51) Procedural Due Process refers to which of the following? 1.
A) Statutes written so vaguely that an ordinary person might not understand them 2. B) Laws that arbitrarily infringe on fundamental, personal rights and liberties 3. C) The fair procedure including notice and a fair hearing before the government can take an action that affects a citizen’s life, liberty, or property
4.
D) Laws that must be so compelling that they outweigh the intrusion on someone’s personal liberty
Answer: C Explanation: Procedural due process means that the government must provide a fair procedure including notice and a fair hearing before taking an action affecting a citizen’s life, liberty, or property. A fair hearing might require, among others, the right to present evidence, the right to a decision maker free of bias, and the right to appeal. Difficulty: 2 Medium Topic: The 14th Amendment Learning Objective: 05-09 Compare and contrast substantive due process and procedural due process. Bloom’s: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 52) When the police lawfully arrest the occupant of a vehicle, they have had the right to search the passenger compartment of that vehicle. A 2009 U.S. Supreme Court decision limited that authority to two circumstances which include the following: 1.
A) If the police can place a GPS tracker on the vehicle in an effort to see if a crime has been or may be committed 2. B) A lawful arrest for a routine traffic stop occurs within a five-mile radius of a recently committed crime 3. C) When an officer reasonably believes that the vehicle contains evidence relevant to the crime for which the occupant of the vehicle may be arrested 4. D) When the exclusionary rule can be properly applied to all the evidence collected
Answer: C Explanation: The U.S. Supreme Court significantly diminished the authority of the police to search the passenger compartment of a vehicle during the lawful arrest of an occupant. Such searches are permissible in only two circumstances: when the individual being arrested is close enough to the vehicle to reach in for a weapon or evidence and when the officer can reasonably believe that the vehicle contains evidence relevant to the crime of arrest. Thus, arrests for routine traffic stops ordinarily would not justify vehicle searches. Difficulty: 2 Medium Topic: The Fourth Amendment
Learning Objective: 05-06 Describe some of the issues arising under the Fourth Amendment “search and seizure” rules. Bloom’s: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation
53) Give a brief account of the creation of the Constitution of the United States.
Answer: The Constitution grew out of the 1778 Articles of Confederation. The Articles contemplated a “firm league of friendship,” but each state was to maintain its “sovereignty, freedom, and independence.” The Articles soon proved faulty. Seven years of war had basically bankrupted the colonies. Currency was largely worthless. The 13 new states fought over economic resources, routine interstate disputes, while the federal union that emerged under the Articles of Confederation had little real authority. As a result of this turmoil and in an effort to strengthen the Articles, the Constitutional Convention was called to order in Philadelphia on May 25, 1787.
The decision to convene the Convention may have been a first in world history in that the state leaders themselves acknowledged that the existing federal government was faulty. The citizenry calmly talked things over, violence was avoided, and the decision was made to go forward with the Convention. All 55 delegates, our Founding Fathers, were white males, and most of them were wealthy landowners, but they were also immensely talented with a wide range of interests and experiences. The delegates agreed that a stronger central government was needed, but they were split on just how far that notion should go. Virginia, led by the brilliant James Madison, favored a dominant central government with greatly diminished state authority. Alexander Hamilton wanted to go further yet by, among other things, instituting the presidency as a lifetime office. On the other hand, several states, led by New Jersey, wanted to retain strong states’ rights. After weeks of debate, a middle ground began to emerge that led toward our current balance of power between big states and small states and between all of the states and the federal government. In the end, the delegates reached consensus on a Constitution that guaranteed the revolutionary notion of rule by the people.
On September 17, 1787, the great document, one of the most influential expressions in human history, was formally signed. Difficulty: 2 Medium
Topic: Creating a Constitution-The United States Learning Objective: 05-01 Recognize the purposes of the U.S. Constitution. Bloom’s: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation