CBA Business Law & Compliance 3

Question 1

What is a 'fiduciary duty' in a business context?

Accepted Answer

A legal and ethical obligation to act in the best interest of another party

Answer

An obligation to maximize profits for shareholders at all costs

Answer

A requirement to disclose all company financial data publicly

Answer

A duty to follow all government regulations without exception

Question 2

Which of the following is an example of 'vicarious liability' for a business?

Accepted Answer

An employer being held liable for an employee's negligent acts performed during the scope of employment

Answer

A company being held liable for a defective product it manufactured

Answer

A business partner being sued for a co-owner's personal debts

Answer

A corporation being fined for a breach of a vendor contract

Question 3

Under the Family and Medical Leave Act (FMLA), eligible employees are entitled to how many weeks of unpaid, job-protected leave per year?

Accepted Answer

12 weeks

Answer

6 weeks

Answer

10 weeks

Answer

16 weeks

Question 4

What is the purpose of an 'indemnification clause' in a business contract?

Accepted Answer

To require one party to compensate the other for specified losses or damages

Answer

To set a fixed price for goods or services over the contract term

Answer

To establish dispute resolution procedures between contracting parties

Answer

To limit the total financial liability of both parties to the contract value

Question 5

Which regulatory body enforces securities laws and regulates the US securities industry?

Accepted Answer

Securities and Exchange Commission (SEC)

Answer

Federal Reserve Board (FRB)

Answer

Financial Industry Regulatory Authority (FINRA)

Answer

Consumer Financial Protection Bureau (CFPB)

Question 6

What is 'negligence' in a business liability context?

Accepted Answer

Failure to exercise reasonable care that results in harm to another party

Answer

Intentionally deceiving a customer about a product's capabilities

Answer

Deliberately violating a regulatory requirement to save costs

Answer

Breach of a written contractual agreement with a vendor

Question 7

A 'non-compete agreement' in employment law is designed to:

Accepted Answer

Restrict an employee from working for competitors or starting a competing business for a defined period after leaving

Answer

Prevent discrimination during the hiring process

Answer

Protect employees from being terminated without cause

Answer

Require employers to provide severance pay upon termination