The following statements pertain to the use of the law as a device to control co
ID: 438115 • Letter: T
Question
The following statements pertain to the use of the law as a device to control corporate misbehavior. Which statement is most accurate?Answer -
A factor operating as a limit on the law's effectiveness is that rational corporate actors may at times consciously decide it makes more sense to violate a legal rule to advance their self-interest if they think they can "get away with it."
Because business entities seldom have a significant voice in determining the law's content, the law has generally proved to be an ineffective control device.
A basic assumption underlying the use of the law as a control device is that corporations frequently behave irrationally.
The law as a control device is irrelevant since market forces eventually will curb all illegal and immoral conduct.
Explanation / Answer
Because business entities seldom have a significant voice in determining the law's content, the law has generally proved to be an ineffective control device.