Business Law chapter 1

California enacts a statute to ban advertising in "bad taste." This statute would likely be held by a court to be a. an unconstitutional restriction of speech. b. constitutional under the First Amendment. c. justified by the need to protect individual rights. d. necessary to protect national interests.

A

Eliza is a state court judge. Flora appears in a case in Eliza's court, claiming that Glover breached a contract. Which of the following actions may Eliza take? a. Award damages or issue a decree of specific performance b. Imprison Glover, but not Flora c. Imprison Flora, but not Glover d. Order the parties to pay Eliza to render a favorable ruling

A

In 2013, Congress enacts the Act to Restrict Commercial Speech (ARCS). The ARCS will be considered valid if it directly advances a substantial government interest a. but goes no further than necessary to achieve its purpose. b. without regard to how "far" it goes. c. and the parties affected by it can elect how "far" to go in applying it. d. and goes further than necessary to ensure full coverage.

A

In Lewis v. Motor City Cars & Trucks, a state supreme court held that a minor could cancel a contract for the sale of a car. A lower court in the same state may depart from this precedent if the court decides that the precedent a. is incorrect or inapplicable. b. is not in line with the judge's personal values. c. would lead to unintended consequences. d. would not bring about the result the judge prefers.

A

Jane enters into a contract with Jill to provide 100 roses for a dinner party. Jane fails to deliver the roses. Jill initiates a suit against Jane, asking the court to order Jane to deliver the roses. Jill is a. the plaintiff. b. the defendant. c. the binding authority. d. the persuasive authority.

A

Machismo Motor Sales Corporation regularly advertises its off-the-road vehicles, all-terrain vehicles, and other products. Under the First Amendment, these ads and other commercial speech are given a. less extensive protection than noncommercial speech. b. more extensive protection than symbolic speech. c. no protection. d. the same protection as defamatory speech.

A

Maggie and Nate enter into a contract for the sale of a car, but Nate later refuses to deliver the car. Maggie asks a court to order Nate to perform as promised. Ordering a party to perform what was promised is a. specific performance. b. damages. c. rescission. d. beyond the court's authority.

A

Savers Mart, Inc., distributes its merchandise to retail outlets on an inter-state basis. Under the commerce clause, Congress has the power to regulate a. any commercial activity in the United States. b. only activities that are in intrastate commerce. c. only activities that are in local commerce. d. only activities that are not in commerce.

A

Starlight Café brings a suit, seeking a remedy at law. A remedy at law is a. the payment of money or property as compensation for damages. b. a decree of specific performance. c. a judicial proceeding for the resolution of a dispute. d. an injunction.

A

ViolentVideoGames, Inc. markets a variety of shooting, fighting and hunting video games. A state statue is enacted that requires all video game manufacturers to label any games with an option to kill something as "excessively violent." A court would likely hold this regulation to be a. an unconstitutional restriction of speech. b. constitutional under the First Amendment. c. justified by the need to protect individual rights. d. necessary to protect national interests.

A

The Pennsylvania legislature enacts a state law that violates the U.S. Constitution. This law can be enforced by a. no one. b. the federal government only. c. the state of Pennsylvania only. d. the United States Supreme Court only.

A no one

As a judge, Bonnie applies common law rules. These rules develop from a. administrative regulations. b. court decisions. c. federal and state statutes. d. proposed uniform laws.

B

George burns an American flag in his backyard. He films his actions and posts the video on YouTube.com. George's actions are a. expressly prohibited by the U.S. Constitution. b. protected by the First Amendment of the U.S. Constitution. c. considered to be a form of treason. d. illegal in some states.

B

Julia is a U.S. citizen. She establishes a Web site that posts threatening messages about celebrities. Her Web site is a. protected by the First Amendment. b. not protected by the First Amendment. c. protected by the Fifth Amendment. d. protected by the Tenth Amendment.

B

Karen is a judge hearing the case of Local Dispatch Co. v. National Transport Corp. Applying the relevant rule of law to the facts of the case requires Karen to find previously decided cases that, in relation to the case under consideration, are a. as different as possible. b. as similar as possible. c. at odds. d. exactly identical.

B

Oklahoma enacts a law requiring all businesses in the state to donate 10 per¬cent of their profits to Protestant churches that provide certain services to persons whose income is below the poverty level. PriceLess Stores files a suit to block the law's enforcement. The court would likely hold that this law violates a. no clause in the U.S. Constitution. b. the establishment clause. c. the free exercise clause. d. the supremacy clause.

B

Tami's Tasty Tacos, a fast food outfit, files a suit against the state of Texas, claiming that a Texas state law violates the commerce clause. The court will agree if the statute imposes a substantial burden on a. a local government. b. interstate commerce. c. noneconomic activity. d. the state.

B

The commerce clause's express grant of exclusive authority to regulate commerce that substantially affects trade and commerce among states is referred to as the a. dormant aspect of the commerce clause. b. positive aspect of the commerce clause. c. negative aspect of the commerce clause. d. exclusive aspect of the commerce clause.

B

Chelsea is a state court judge. Like judges in most state courts, in a particular case, she may grant a. a remedy at law only. b. a remedy in equity or a remedy at law, but not both. c. a remedy in equity and a remedy at law. d. a remedy in equity only.

C

Japan violates an international law. Other countries may take coercive actions, which include a. violating the same law in the same way with impunity. b. confiscating Japanese businesses. c. boycotting Japanese goods. d. taxing Japanese citizens.

C

Judge Julia decides that the precedent for the case she is hearing is no longer correct due to technological changes. She overturns the precedent when she decides the case. It is most likely that her case will a. go unnoticed by the public. b. be thrown out of court. c. receive a great deal of publicity. d. be ignored by the media.

C

Leona enters into a contract with Munchies Bakery to cater a sales conference. When the conference is postponed indefinitely, Leona asks a court to cancel the contract and return the parties to the positions that they held before its formation. This request involves a. specific performance. b. an injunction. c. rescission. d. an action that the court cannot order.

C

Martin, a U.S. citizen, feels that a recently enacted federal law is unfair. He assembles a group of friends and they write a petition to the government. Martin and friends then stand quietly in front of the White House with signs declaring their belief that the law is unfair. Under the First Amendment, Martin has a right to a. petition the government, but not to assemble a group peaceably. b. assemble peaceably, but not to petition the government. c. both petition the government and assemble peaceably. d. neither petition the government nor assemble peaceably.

C

Mary creates a t-shirt design that expresses her support for a presidential candidate and distributes t-shirts to all her friends. The t-shirts are an example of a. unprotected speech. b. controlled speech. c. symbolic speech. d. illegal speech.

C

Reusable Energy Corporation regularly expresses opinions on political issues. Under the First Amendment, corporate political speech is a. discouraged. b. forbidden. c. protected. d. required.

C

Smithy Saddlery is a saddle shop subject to the laws of New York. In New York, the highest-ranking (superior) law is a. a case decided by the New York Court of Appeals. b. a rule created by a New York state administrative agency. c. a provision in the New York constitution. d. a statute enacted by the New York legislature

C a provision in the New York constitution

Congress enacts a statute, the Federal Deposit Insurance Corporation (an administrative agency) issues rules, the Southeast Financial Institutions Association (a private organizations) issues instructions, South Valley Bank posts a memo with orders for its employees, and Tina tells her co-worker about a recent news story. Sources of law include a. the instructions issued by private associations. b. the orders posted by employers. c. the rules issued by federal administrative agencies. d. the stories released by news agencies.

C the rules issued by federal administrative agencies

Beth is a victim of Carl's violation of a criminal law. Criminal law is concerned with a. the prosecution of private individuals by other private individuals. b. the prosecution of public officials by private individuals. c. the relief available when a person's rights are violated. d. wrongs committed against the public as a whole.

D

Congress enacts a law prohibiting toys made in China from being sold in the United States. The Hawaii state legislature enacts a law allowing the sale of Chinese-made toys. Hawaii's law will most likely be struck down under a. the commerce clause. b. the equal protection clause. c. the due process power. d. the supremacy clause

D

Don, a U.S. citizen, is the owner of Egrets Unlimited, Inc. Egret's competitors include Feathered Friends Company (FFC), which is owned by Greg and Huey. The Bill of Rights embod¬ies a series of protections for Don against types of interference by a. FFC and its other competitors only. b. FFC, Greg, Huey, others, and the government. c. Greg, Huey, and other private individuals only. d. the government only.

D

Owen is a federal judge whose judicial decisions are part of case law, which does not include interpretations of a. other case law. b. constitutional provisions. c. statutes. d. sound bites in the media.

D

The best definition of a precedent is a. a law developed from custom. b. a judicial proceeding for the determination of a dispute between parties in which rights are enforced or protected. c. a proceeding by one person against another in court. d. a court decision that furnishes an example or authority for deciding subsequent cases involving identical or similar facts.

D

A provision in the California state constitution conflicts with a provision in the U.S. Constitution. If challenged a. neither provision will be enforced. b. the provisions will be balanced to reach a compromise. c. the state provision, not the U.S. Constitution, will be enforced. d. the U.S. Constitution, not the state provision, will be enforced.

D the U.S Constitution, not the state provision, will be enforced

A law that has any impact on religion is unconstitutional.

F

A restriction on commercial speech is valid as long as it forbids only the expression of views on controversial issues.

F

Common law is the same as statutory law.

F

Damages are never paid in money.

F

Government authorities cannot enforce national law.

F

Stare decisis is a doctrine obligating judges to help persons who have failed to protect their own rights.

F

State laws are the supreme law of the United States.

F

The Fifth Amendment prohibits unreasonable searches and seizures of persons or property.

F

The First Amendment protects defamatory speech.

F

The Second Amendment to the U.S. Constitution reserves all powers not delegated to the national government to the states.

F

The federal government and the states have the same constitution.

F

Uniform laws apply in all states, including those in which the laws have not been adopted.

F

A court may depart from a precedent if the precedent is no longer valid.

T

Administrative law consists of the rules, orders, and decisions of administrative agencies. .

T

Article I, Section 8, of the U.S. Constitution permits Congress to regulate interstate commerce.

T

Congress creates an administrative agency by enacting enabling legislation.

T

Damages are a remedy at law.

T

Equity is a branch of law, founded in justice and fair dealing, which seeks to supply a remedy when no adequate remedy at law is available.

T

In order to truly understand our legal system, it is important to understand the origins of the common law tradition.

T

Preemption occurs when Congress chooses to act exclusively in a concurrent area and a valid federal statue or regulation takes precedence over a conflicting state or local law.

T

Stare decisis is a doctrine obligating judges to follow the precedents established within their jurisdictions.

T

State constitutions are supreme within their respective borders.

T

Statutes are laws enacted by Congress and the state legislatures and comprise one of the sources of American law.

T

Statutory law includes state statutes and ordinances passed by cities and counties.

T

Symbolic speech is defined as nonverbal expressions of belief and is protected by the First Amendment.

T

The Children's Internet Protection Act requires public schools and libraries to use filtering software to block children's access to adult contact on Web sites.

T

The Eighth Amendment prohibits excessive bail and fines, as well as cruel and unusual punishment.

T

The First Amendment protects corporate political speech.

T

The establishment clause of the U.S. Constitution prohibits the federal government from establishing a state-sponsored religion.

T