Business Services Business Services Law & Compliance

Question 1

What is the purpose of a non-disclosure agreement (NDA) in business services?

Accepted Answer

To protect confidential information shared between parties

Answer

To set payment terms between parties

Answer

To assign intellectual property rights

Answer

To define service delivery timelines

Question 2

Under US employment law, what is the key distinction between an employee and an independent contractor?

Accepted Answer

The degree of behavioral and financial control the company exerts

Answer

Contractors always earn more than employees

Answer

Contractors must be licensed professionals

Answer

Employees work remotely while contractors work on-site

Question 3

What does GDPR compliance require of US companies that serve EU customers?

Accepted Answer

That they protect the personal data of EU residents and provide rights such as data deletion

Answer

Only that they register with the EU government

Answer

That they store all EU data in the US

Answer

That they hire EU-based compliance officers

Question 4

What is the purpose of the Foreign Corrupt Practices Act (FCPA) for US businesses?

Accepted Answer

To prohibit US businesses from bribing foreign government officials

Answer

To regulate foreign investment in US companies

Answer

To restrict imports of foreign services

Answer

To set tariffs on international business services

Question 5

In business services contracts, what is 'indemnification'?

Accepted Answer

An obligation by one party to compensate the other for certain losses or liabilities

Answer

A payment schedule clause

Answer

A confidentiality requirement

Answer

A termination notice period

Question 6

What does 'force majeure' mean in a business services contract?

Accepted Answer

A provision releasing parties from obligations due to extraordinary events beyond their control

Answer

A bonus clause for exceeding targets

Answer

A penalty for late delivery

Answer

An automatic contract renewal clause