Business Law & Compliance Flashcards
7 cards from real CBA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Business Law & Compliance flashcards as text
What is a 'fiduciary duty' in a business context?
Answer: A legal and ethical obligation to act in the best interest of another party
A fiduciary duty is the highest standard of legal care, requiring a person (such as a board member or trustee) to act in the best interest of the party they represent.
Which of the following is an example of 'vicarious liability' for a business?
Answer: An employer being held liable for an employee's negligent acts performed during the scope of employment
Vicarious liability holds an employer responsible for wrongful acts committed by employees within the scope of their employment duties.
Under the Family and Medical Leave Act (FMLA), eligible employees are entitled to how many weeks of unpaid, job-protected leave per year?
Answer: 12 weeks
FMLA entitles eligible employees of covered employers to take up to 12 weeks of unpaid, job-protected leave per year for qualifying family or medical reasons.
What is the purpose of an 'indemnification clause' in a business contract?
Answer: To require one party to compensate the other for specified losses or damages
An indemnification clause requires one party to cover the losses, damages, or legal costs incurred by the other party under specified circumstances.
Which regulatory body enforces securities laws and regulates the US securities industry?
Answer: Securities and Exchange Commission (SEC)
The SEC is the primary federal regulator of the US securities industry, enforcing laws against market manipulation, insider trading, and requiring accurate public company disclosures.
What is 'negligence' in a business liability context?
Answer: Failure to exercise reasonable care that results in harm to another party
Negligence is the failure to exercise the standard of care that a reasonably prudent person would exercise, resulting in unintentional harm to another party.
A 'non-compete agreement' in employment law is designed to:
Answer: Restrict an employee from working for competitors or starting a competing business for a defined period after leaving
A non-compete agreement restricts former employees from working for competitors or starting competing businesses within a specified time period and geographic area.