Business Law

What is a similarity between a summary jury trial and a minitrial? A. The neutral adviser's opinion in a minitrial, like the jury's verdict in the summary jury trial, is not binding. B. Both types of ADR are long and last multiple days, which allows for all the evidence to be presented. C. Both use specially trained judges to hand down legally binding decisions. D. Both types of ADR do not allow the two parties to come to a compromise after a decision is handed down. E. Both use hand-selected juries to provide fast, legally binding decisions.

A

Which form of ADR does NOT use a neutral third party to solve a dispute? A.Negotiation B. Early neutral case evaluation C. Med-arb D. Private trial E. Arbitration

A

Which of the following acts would probably constitute minimum contacts that would allow an Ohio court to serve a Michigan defendant to obtain in personam jurisdiction over him? A. All of the contacts described provide sufficient contacts for in personam jurisdiction. B. None of the contacts described provides sufficient contacts for in personam jurisdiction. C. The Michigan defendant got into an automobile accident in Ohio. D. The Michigan defendant signed a contract in Ohio with an Ohio business. E. The Michigan defendant sold products in the state of Ohio that injured the purchasers.

A. All of the contacts described provide sufficient contacts for in personam jurisdiction.

Which critical thinking skill or skills would be most relevant to the makers of RelaxEze in determining whether to move forward with their strategy? A. Analyzing the effects of ambiguity and acknowledging the need for additional information. B. Acknowledging the need for additional information. C. Analyzing the effects of ambiguity. D. Evaluating the quality of the judge's reasoning in Lopez. E. Evaluating the quality of the judge's reasoning in Lopez and acknowledging the need for additional information.

A. Analyzing the effects of ambiguity and acknowledging the need for additional information.

Business ethics shape the development of the law in what fashion? A. The ideals and standards of business ethics point lawmakers in directions where additional laws are needed. B. The codes of ethics of firms are similar to the codes of ethics for lawmakers. C. Both have a similar history. D. To be meaningful, ethics must recognize the complexity of commercial activities. E. Those who make the law often come from the business world.

A. The ideals and standards of business ethics point lawmakers in directions where additional laws are needed.

Tradition and legal positivism share __________________. A. a respect for stability B. a hesitation to sponsor more administrative agencies C. a preference for statutory law over treaties D. a support for cost-benefit analysis E. a dislike for the Plessy v. Ferguson decision

A. a respect for stability

A reply by the plaintiff is similar to a(n) _______________ by the defendant. A. answer B. motion for summary judgment C. counterclaim D. interrogatory E. None of the items listed

A. answer

A motion for change of venue can be used to A. move the case from the court in one geographic location to another within the same system. B. move the case from the federal to the state court system. C. move the case from the state to the federal court system. D. move the case from the court in one geographic location to another within the same system and move the case from the federal to the state court system. E. move the case from the court in one geographic location to another within the same system and move the case from the state to the federal court system.

A. move the case from the court in one geographic location to another within the same system

One of the disadvantages of arbitration is that ________. A. Arbitration is more expensive than litigation. B. Appealing an arbitration award is very difficult, so some are concerned injustice will occur. C. Arbitration is more public than litigation. D. Arbitration does not offer legally binding decisions, so the dispute is not fully resolved. E. The process of arbitration takes much longer than the litigation process.

B

Which of the following is a reason to set aside an arbitrator's award pursuant to the Federal Arbitration Act (FAA)? A. The award was the result of corruption. B. All of these C. The arbitrator refused to hear relevant evidence. D. The arbitrator was biased. E. The arbitrator failed to make a mutual, final, and definite award.

B.

If the plaintiff, Carlene, files a case in the state court in Lucas County, Ohio, and the defendant, Carlos, wants the case heard in a federal district court in Michigan, what would Carlos have to do? A. He would have to file a motion for a change of venue. B. He would have to file a motion to exercise his right of removal and then file a motion for a change of venue. C. He would have to file a motion to exercise his right of removal. D. He is out of luck because the plaintiff chooses where the case will be heard by filing it in that court. E. He would have to file a motion for change of jurisdiction.

B. He would have to file a motion to exercise his right of removal and then file a motion for a change of venue

Why is the question raised by Smooth Ride's consideration of a move to Honduras an ethical dilemma? A. The corporate core values could be tied somehow to the problem. B. It is a question about right and wrong business conduct with no clear right or wrong answer. C. The stakeholders indicate to the firm that the problem is ethical. D. Smooth Ride always tries to behave in an ethical manner. E. Honduras is an especially poor country where the soldiers will be used to prevent unionization.

B. It is a question about right or wrong business conduct with no clear right or wrong answer

The WPH framework would be incomplete without which of the following? A. Well-educated corporate leaders. B. Practical guidelines that assist in determining how to respond to an ethical dilemma. C. A solid grounding in accounting and marketing. D. An explanation of the complexity of each aspect of modern business. E. A code of corporate conduct.

B. Practical guidelines that assist in determining how to respond to an ethical dilemma.

Why are the differences between a precedent and the current case important? A. Courts are trying to reduce differences, not increase them. B. There should be few differences for the legal reasoning in the precedent to apply in the current case. C. An analogy is high or low quality when its differences are uniquely exciting. D. Later, courts will be studying these differences to determine the quality of this court. E. The current case will itself be a precedent after the decision.

B. There should be few differences for the legal reasoning in the precedent to apply in the current case.

Margoli's is a hypothetical manufacturing company located in Wayne County, Michigan. All of its employees are residents of Michigan, and most of its customers are also located in the state. One day, the primary deliveryman called in sick. Carlos, one of the managers, had to fill in to make a delivery in Bowling Green, located in Wood County, Ohio. Worried about being away from the plant for too long, Carlos exceeded the speed limit as he drove toward Bowling Green. As he drove through Lucas County, Ohio, he was unable to control his truck as he made a sharp turn. He drove up onto the sidewalk and hit a pedestrian who was standing at the intersection waiting to cross the street. As a result, Carlene, the pedestrian, suffered injuries that resulted in her becoming a paraplegic, ending her career as tennis pro. Carlene is suing both Margoli's and Carlos.In the case of the reckless deliveryman, Margoli's and all of its employees are located in Michigan. When the manager, Carlos, was making a delivery, he exceeded the speed limit and struck Carlene. Carlene is now a paraplegic who must abandon her career as a tennis pro. The accident took place in Ohio. If it is discovered that Carlos is actually from Wood County, Ohio, in which court or courts can Carlene now file her case against Carlos and Margoli's? A. Federal district court located in Wayne County. B. Wood County Court of Common Pleas or Lucas County Court of Common Pleas. C. Any of the listed courts. D. Wood County Court of Common Pleas. E. Lucas County Court of Common Pleas.

B. Wood County Court of Common Pleas or Lucas County Court of Common Pleas

If Judge Oh were a person who believed in the wisdom of legal positivism, he would _____________________. A. be very positive that he knew what the law really is B. be less concerned with the morality of the law than with the need to obey the law C. insist the law is a positive force in our society D. prefer for the law to obey the views of the early framers of the Constitution E. decide on the basis of which side sounded the most positive about our future

B. be less concerned with the morality of the law than with the need to obey the law

The primary method of securing arbitration is through a _____. A. submission agreement B. binding arbitration clause C. unconscionable arbitration clause D. summary jury trial E. adversarial negotiation

B. binding arbitration clause

Two parties hire a neutral third party to help solve their dispute. The parties begin by a process of mediation. However, one of the parties cannot agree to the solution the other party proposes. Then, after the dispute is not resolved, the parties hire a new neutral third party and begin to arbitrate. This scenario is an example of what form of dispute resolution? A. Negotiation-arb B. Arbitration C. Med-arb D. ADR E. Mediation and negotiation

C

Which of the steps in civil litigation is considered a part of the discovery process in the case? A. A motion for judgment on pleadings is filed. B. A motion for summary judgment is filed. C. Both parties file interrogatories. D. A pretrial conference is held. E. None of these is considered a part of the discovery process.

C. Both parties file interrogatories

Margoli's is a hypothetical manufacturing company located in Wayne County, Michigan. All of its employees are residents of Michigan, and most of its customers are also located in the state. One day, the primary deliveryman called in sick. Carlos, one of the managers, had to fill in to make a delivery in Bowling Green, located in Wood County, Ohio. Worried about being away from the plant for too long, Carlos exceeded the speed limit as he drove toward Bowling Green. As he drove through Lucas County, Ohio, he was unable to control his truck as he made a sharp turn. He drove up onto the sidewalk and hit a pedestrian who was standing at the intersection waiting to cross the street. As a result, Carlene, the pedestrian, suffered injuries that resulted in her becoming a paraplegic, ending her career as tennis pro. Carlene is suing both Margoli's and Carlos. In the case of the reckless deliveryman, Margoli's and all of its employees are located in Michigan. When the manager, Carlos, was making a delivery, he exceeded the speed limit and struck Carlene. Carlene is now a paraplegic and must abandon her career as a tennis pro. The accident took place in Ohio. Which of the following facts will cause the jurisdiction to shift from concurrent federal jurisdiction to state jurisdiction? A. Carlos resides in Ohio and Carlene sues the Wisconsin company that made Carlos's truck. B. Carlene had seen Carlos coming but chose not to move out of the way. C. Carlos was a resident of Ohio, not Michigan. D. Carlos was not violating the speed limit at the time he hit Carlene. E. Carlene also sued the manufacturer of the delivery truck, a company located in Wisconsin.

C. Carlos was a resident of Ohio, not Michigan

In critical thinking language, what do we call the court's decision? A. Jury instructions. B. Final words in its decision. C. Conclusion. D. Deciding factor. E. Determination of the issues.

C. Conclusion

A music company wants to place the following provisions in its binding arbitration for all of the employees it hires. Which provision(s) may be unenforceable or unconscionable? I. All situations arising must be handled through arbitration and not litigation.II. A three-person panel of arbitrators will be used to settle the dispute. Each party picks one arbitrator, and the two arbitrators subsequently pick the third.III. Only the employee complaining about a dispute shall provide list of all fact witnesses and a brief summary of the facts known to each. The company does not share this responsibility.IV. The decision of the arbitrator is legally binding. A. I, II, III, and IV. B. II, III, and IV. C. III only. D. II and III. E. None of these.

C. III only

Which of the following is a true statement about legal philosophy? A. Only statutory law is shaped by legal philosophy. B. Law is shaped by solid reasons, rather than by legal philosophy. C. Legal philosophy helps shape all law. D. The laws of other countries are less likely to be shaped by legal philosophy. E. Legal philosophy comes into play after the law has been created.

C. Legal philosophy helps shape all law.

What does it mean when we say that ethics guides the law? A. We mean that it has an effect, but not a large one. B. When people want business to be socially responsible, they want the law to enforce it. C. The evolution of the law moves in a direction that legislatures and courts see as more ethical. D. The universalization principle is the basis for all legal principles. E. The law is persistently shaping the behavior that we call "ethical" when business managers do it.

C. The evolution of the law moves in a direction that legislatures and courts see as more ethical

Business ethics provide a set of standards for ethical behavior, but they can never provide ________. A. proof of the good will of those operating the business B. profits at a maximum level C. absolute right answers D. a legal guarantee E. expanded rights for everyone

C. absolute right answers

The study of what is good or right is ____________. A. legal philosophy B. dependent on the individual's conscience C. ethics D. social responsibility E. religious thought

C. ethics

Each of the following are forms of alternative dispute resolution mechanisms EXCEPT: A. arbitration. B. private trials. C. minitrials. D. litigation. E. med-arb.

D

If you were creating a fair binding arbitration agreement clause, you would want to make sure that the clause fulfills each of the following characteristics except A. states explicitly which party will pay the arbitrator's fees. B. specifies how the arbitrator will be selected. C. spells out the costs associated with the arbitration. D. does not consider other potential parties when determining where to hold the arbitration. E. avoids limitations on the remedies available to the parties.

D

Which one of the following is a disadvantage of arbitration over litigation? A. Arbitration is more expensive than litigation. B. Arbitrators are bound by precedent and have little flexibility of decisions. C. Arbitrators often are unspecialized and do not know about the subject matter they are arbitrating. D. Companies and employers able to "hide" their disputes through arbitration. E. Arbitrations are very easily appealed, unlike the decisions of judges.

D

Fairness is the central guide for which legal philosophy? A. Legal positivism. B. Tradition. C. Cost-benefit analysis. D. Natural law. E. Identification with the vulnerable.

E. Identification with the vulnerable

Concurrent federal jurisdiction exists when A. no plaintiff and defendant are residents of the same state, and there is over $75,000 at issue in the case. B. the case addresses a federal question. C. one state is suing another state. D. no plaintiff and defendant are residents of the same state, and there is over $75,000 at issue in the case or the case raises a federal question. E. no plaintiff and defendant are residents of the same state, and there is over $75,000 at issue in the case and one state is suing another state.

D.

Smooth Ride Tires is experiencing economic hard times. Their current revenue stream is simply not covering their costs. Although the management of Smooth Ride has not made a definite commitment yet, they are leaning toward moving their facilities to Honduras. The reasons are many. The labor force in Honduras, while not as well-trained as the American workforce, is almost half as expensive. In addition, the Honduran government has promised that soldiers will be used to stop any effort by the Honduran workforce to organize a union. Finally, the weak environmental protection laws in Honduras will provide a much friendlier production environment for a manufacturing process that is often "dirty." The daughter of a major stockholder is threatening to go to the press to "expose" the motivations of management. How should management respond if it is going to live up to its image as "one of the most ethical firms in the modern marketplace?" When making the decision as to whether to move the plant to Honduras, which of the following would be a relevant stakeholder or stakeholders? A. customers. B. management and customers. C. owners or shareholders. D. All of the listed entities would be relevant stakeholders. E. employees.

D. All of the listed entities would be relevant stakeholders.

In the case of the reckless deliveryman, the court could acquire jurisdiction over the out-of-state defendants by using the long-arm statutes and serving them. Which of the following provide an alternative to obtaining jurisdiction over the defendant? A. Attachment jurisdiction. B. Quasi in rem jurisdiction. C. In rem jurisdiction. D. All of these. E. None of the listed items (the trial court must have in personam jurisdiction over both parties).

D. All of these

In addition to concurrent federal jurisdiction, and state jurisdiction, a third type of subject-matter jurisdiction is exclusive federal jurisdiction. Which of the following items do not fall under exclusive federal jurisdiction? A. All of the listed cases fall under exclusive federal jurisdiction. B. Patent cases. C. Bankruptcy cases. D. Cases involving the determination of whether a federal law violates a person's rights under the U.S. Constitution. E. Cases where one state is suing another.

D. Cases involving the determination of whether a federal law violates a person's rights under the U.S. Constitution

Which document initiates the lawsuit? A. Reply. B. Interrogatory. C. Motion for summary judgment. D. Complaint. E. Answer.

D. Complaint

What are the most basic building blocks in a legal decision? A. The lawyers selected by each side. B. Personalities of the people who brought the case to court. C. The judge's decision. D. Facts. E. The judge and jury.

D. Facts

Establishing a code of ethics can benefit the firm but has the following limitation. A. The code may be disobeyed in secret. B. The code may be written in one country, but the firm has business in a different country. C. Government regulations may prevent obedience to the code of ethics. D. It can never provide the firm with a single best answer for what it should do. E. The code may be written by the human resources office and never understood by top management.

D. It can never provide the firm with a single best answer for what it should do.

For Judge Oh to be comfortable with natural law as a legal philosophy, which of the following would need to be true? A. It is natural for injustice to develop. B. Natural law would need to become more popular than it currently is. C. He would need to have no legal philosophy at all. D. The higher law is that the weaker members of society should be protected by the law. E. Judge Oh would need to place more faith in a higher power.

D. The higher law is that the weaker members of society should be protected by the law.

For purposes of determining subject matter jurisdiction, a corporation is a resident of A. the state in which it is incorporated. B. the state which is its primary place of business. C. any state in which it does business. D. the state in which it is incorporated and the state which is its primary place of business. E. the state in which it is incorporated and any state in which it does business.

D. the state in which it is incorporated and the state which is its primary place of business

Which of the following is an accurate depiction about the differences between arbitration and litigation? A. Litigation provides legally binding decisions, but arbitration does not. B. An arbitrator's award cannot be appealed, whereas a judge's decision can. C. Arbitration provides legally binding decisions, but litigation does not. D. The only type of award an arbitrator can give is monetary, whereas a judge can provide more types of awards. E. An arbitrator is not bound by precedent, whereas a judge is.

E

Preventing the case from going to trial is the purpose of which of the following step(s) in civil litigation? A. Only interrogatories. B. Only a reply. C. Only a motion for judgment on the pleadings. D. Only a motion for summary judgment. E. A motion for judgment on the pleadings and a motion for summary judgment.

E. A motion for judgement on the pleadings and a motion for summary judgement

When we ask why a particular decision was made by a court, we are expressing which of the following? A. Tolerance and curiosity. B. A desire to demonstrate that we do not accept the conclusion of the court. C. Hesitancy to obey this particular court. D. The adversarial nature of law. E. A respectful desire to understand the reasons for the court's decision.

E. A respectful desire to understand the reasons for the court's decision

Which of the following items are contained in the complaint? A. The relief the plaintiff is seeking. B. The basis for the court's subject-matter jurisdiction over the case. C. The names of the parties to the case. D. A request for a jury. E. All of these are included in the complaint.

E. All of these are included in the complaint

Who of the following can serve as an arbitrator? A. Qualified members of the community. B. Lawyers. C. Business professionals. D. Professors. E. All of these people can potentially be arbitrators.

E. All of these people can potentially be arbitrators

What is one example of a type of unconscionable provision in the binding arbitration agreement in the Hooters case opener? A. Hooters required mandatory arbitration and would not allow the employee to litigate. B. Hooters gave the employee an unreasonably short time to file arbitration claims. C. Hooters limited the amount of available damages to the employee through arbitration. D. The employee could call no witnesses and bring no evidence against Hooters in the arbitration situation. E. Only Hooters was allowed to record the arbitration.

E. Only Hooters was allowed to record the arbitration

Why is it not ethical necessarily for Smooth Ride to decide where it locates by simply obeying the law? A. Social responsibility is a concept derived not from law, but from social expectations. B. Obedience to the law doesn't matter in cases of global competition. C. The law is guided by politics, not values. D. Core values differ among firms. E. The law does not cover all aspects of human conduct that have ethical effects.

E. The law does not cover all aspects of human conduct that have ethical effects.

If when making the decision about whether to move their plant to Honduras, Smooth Ride management considered how they would feel if details of the move were the focus of a headline story on the front page of the Wall Street Journal, which test would they be applying? A. The public disclosure and universalization tests. B. None of the listed tests are being applied. C. The universalization test. D. The golden rule. E. The public disclosure test.

E. The public disclosure test.

Obedience to precedent is especially powerful among believers in which legal philosophy? A. Natural law. B. Identification with the vulnerable. C. Cost-benefit analysis. D. Legal realism. E. Tradition.

E. Tradition

At the same time the parties filed interrogatories, they could have also filed a request for the production of documents. Which of the following documents could have been requested? A. A photograph. B. Medical records. C. A contract. D. A report from a mental examination. E. All of these.

E. all of these

Business ethics is not adequately pursued just by obeying the law because __________. A. to obey the law is not to favor its continued existence B. law and ethics function on two different levels C. ethics by business leaders need to be expanded D. obedience to the law can be only halfhearted E. ethics asks us not just what the law is, but what it should be

E. ethics asks us not just what the law is, but what it should be