Deck 36: Legal and Ethical Issues in Business and Trade

Question 1

When Maja,an attorney and a U.S.citizen,crosses the border between the United States and Canada,she expects the U.S.Department of Homeland Security to search her laptop.To avoid disclosing confidential client data during the search,Maja could

A)keep client files on a device that she does not take abroad.
B)carry client files abroad only in hard copy.
C)refuse to consent to a border search of her laptop.
D)assert her right to be free from unwarranted government intrusion.

Answer 1

A

Question 2

Home & Hearth Furniture,Inc.,and Inez,a consumer,enter into a contract for a sale of a suite of bedroom furniture.If the contract includes a clause that is perceived as grossly unfair to Inez,its enforcement may be challenged under the doctrine of

A)good faith.
B)impracticability.
C)square dealing.
D)unconscionability.

Answer 2

D

Question 3

Cruz,a sugar cane farmer in Brazil,forms an alliance with Alexis,an importer and marketer in the United States.Their products carry a Fair Trade label.This means that Cruz

A)is willing to fairly trade goods instead of cash for his products.
B)receives a stable minimum price for his products.
C)employs forced labor at a fair price whenever possible.
D)produces crops as cheaply as possible to keep his prices minimal.

Answer 3

B

Question 4

Fleet Feet,an online travel company,buys blocks of rooms from Grande Hotel,a hotel in Harbor City,at a wholesale rate.Fleet Feet resells the rooms to consumers at a retail rate.One recent effort by cities to collect taxes from e-commerce has focused on

A)hotels that sell blocks of rooms at wholesale rates.
B)non-resident consumers who reserve rooms in in-state hotels.
C)online travel companies.
D)the dire financial straits of the cities during the latest recession.

Question 5

Lucas,a dairy farmer in Minnesota,and Northland Dairy Products,Inc.,enter into a contract for the sale of a certain quantity of fresh milk.Although not expressly stated,a concept that is read into this contract is the concept of

A)good faith.
B)impracticability.
C)square dealing.
D)unconscionability.