CBA Business Law & Compliance 2 — Questions and Answers
Question 1: What is 'intellectual property' in a business context?
- Physical assets owned by a company
- Creations of the mind protected by legal rights such as patents, copyrights, and trademarks (Correct answer)
- Trade secrets shared only among executives
- Any property purchased using business funds
Correct answer: Creations of the mind protected by legal rights such as patents, copyrights, and trademarks
Intellectual property refers to creations of the mind — inventions, literary works, logos, and trade secrets — protected by patents, copyrights, and trademarks.
Question 2: A 'non-disclosure agreement' (NDA) in business is primarily used to:
- Prevent employees from working for competitors after leaving
- Protect confidential business information shared between parties (Correct answer)
- Establish payment terms between a business and its vendors
- Define ownership rights to work created by employees
Correct answer: Protect confidential business information shared between parties
An NDA is a legally binding contract that protects confidential information from being disclosed to third parties without authorization.
Question 3: Under the Fair Labor Standards Act (FLSA), which employees are classified as 'exempt' from overtime pay requirements?
- All full-time employees earning a salary
- Part-time employees working fewer than 30 hours per week
- Employees in executive, administrative, or professional roles meeting salary and duties tests (Correct answer)
- Any employee who voluntarily waives overtime pay in writing
Correct answer: Employees in executive, administrative, or professional roles meeting salary and duties tests
FLSA exempts executive, administrative, and professional employees who meet specific salary thresholds and duties tests from overtime pay requirements.
Question 4: What is 'tort law' as it applies to business operations?
- Laws governing corporate tax obligations
- A body of law that allows individuals to seek compensation for civil wrongs or injuries (Correct answer)
- Regulations for business contracts and agreements
- Laws that govern the formation of business entities
Correct answer: A body of law that allows individuals to seek compensation for civil wrongs or injuries
Tort law covers civil wrongs — such as negligence or defamation — that cause harm to others, allowing injured parties to seek financial compensation.
Question 5: Which of the following best describes 'antitrust law' in the United States?
- Laws that regulate employee benefit plans
- Legislation designed to promote competition and prevent monopolistic business practices (Correct answer)
- Rules governing the use of trademarks and trade names
- Regulations requiring businesses to disclose financial risks to investors
Correct answer: Legislation designed to promote competition and prevent monopolistic business practices
Antitrust laws such as the Sherman Act are designed to prevent monopolies, price-fixing, and anti-competitive practices that harm consumers and the marketplace.
Question 6: In employment law, what is 'at-will employment'?
- An arrangement where employees can only be terminated with cause
- Employment that can be ended by either the employer or employee at any time for any lawful reason (Correct answer)
- A contract guaranteeing employment for a fixed period of time
- A federal program providing job security to long-term employees
Correct answer: Employment that can be ended by either the employer or employee at any time for any lawful reason
At-will employment means either party can terminate the relationship at any time for any reason that is not illegal, without advance notice or contractual obligation.
Question 7: What does GDPR primarily regulate, and why is it relevant to US businesses?
- General corporate disclosure requirements for US public companies
- Data privacy rights for individuals in the European Union, affecting any business that handles EU residents' data (Correct answer)
- Global trade tariff regulations affecting US exporters
- Financial reporting standards for multinational corporations
Correct answer: Data privacy rights for individuals in the European Union, affecting any business that handles EU residents' data
GDPR (General Data Protection Regulation) governs how businesses collect and process personal data of EU residents, and it applies to any company worldwide that handles such data.
CBA Business Law & Compliance 2
What is 'intellectual property' in a business context?