When an employee in Colorado sues her employer for sexual harassment, the state
court judge applies federal law relating to workplace harassment because it extends
protections to employees beyond those provided by stat
...
When an employee in Colorado sues her employer for sexual harassment, the state
court judge applies federal law relating to workplace harassment because it extends
protections to employees beyond those provided by state law.
When an employee tries to file a discrimination complaint against her employer in Maine
after she loses in a Vermont state court, the Maine state court agrees to hear the case.
An Arizona resident drove through New Mexico to visit his college roommate and is hit
by a delivery truck. When the New Mexico state court hears the case, the judge only
takes Arizona law into consideration, since that's where the plaintiff resides.
A federal judge refuses to hear a negligence case that includes a state-based claim in
addition to a federal one. She cites the fact that federal courts can never have
jurisdiction over cases that involve state laws.
CONCEPT
The Courts and the Legal Process
2
Since corporations are separate legal entities from their shareholders, which of the
following is true?
Shareholders do not need to pay taxes on dividend earnings since corporations are
taxed independently.
Under no circumstances can the protection of limited liability be removed from
shareholders.
Shareholders are usually not financially accountable for the actions of the corporation,
but neither do they own the assets of the corporation.
A corporation can only exist for as long as its original owners are present.
CONCEPT
Corporations
3
The CEO of Oil Company X is dismayed to learn that oil has been leaking from one of its off-
shore rigs into the Gulf of Mexico for the last five years. In deciding how to proceed, the
company identifies a range of stakeholders, considers how different courses of action
would impact each stakeholder, and determines which core values each decision would
satisfy.
According to the Josephson's core values model for ethical decision-making, what
should Company X do next?
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