Business Law Multiple Choice
A US district court is: A) the primary federal trial court B) an appellate court C) a small claims court D) none of the above
A
A salesclerk at Sparkle Jewelry Store observed a customer remove a ring from a display case and put it in his pocket. In most states, Sparkle: A) can reasonably detain the customer for suspicion of shoplifting B) cannot detain the customer but can alert the police C) cannot detain the customer but once the customer leaves the store, the salesclerk can make a citizen's arrest D) cannot detain the customer but can sue for conversion
A
Contemporary law's principle of collective responsibility, such as all partners being personally responsible for the debts of the partnership, had its roots in: A) the Anglo-Saxon method of ensuring public order through tithing B) the Anglo-Saxon practice of using "oath helpers" C) the English use of "shire reeves" D) the English system of feudalism
A
If in 1900 the Minnesota Supreme Court ruled that a minor can void a contract at any time during minority and in 2008 the courts in Minnesota still follow this ruling, this is an example of: A) stare decisis B) the bystander rule C) statutory law D) enabling legislation
A
In 1992, the NC SC ruled in a case entitled Goodman v. Wenco Foods, Inc., that when a substance in food causes injury to a consumer of the food, it is not a bar to recovery against the seller that the substance was natural to the food. If, in a 2008 case involving a consumer's injury caused by a fish bone in a bowl of fish chowder, the court followed the decision in Goodman v. Wenco Foods, Inc., the court's action in the second case is an example of: A) stare decisis B) statutory law C) public law D) criminal law
A
In Jones v. Clinton, the court held: A) Paula Jones did not demonstrate the essential elements for her claim B) Paula Jones was entitled to a summary judgment C) public policy required that the case be dismissed because of the President's governmental position D) President Clinton failed to comply with a discovery order
A
In a civil case, the plaintiff must prove the case: A) by a preponderance of the evidence B) by clear and convincing evidence C) beyond a reasonable doubt D) none of the above; the burden of proof is on the defendant
A
In a comparative negligence state, if the plaintiff in a negligence lawsuit is found to be 30 percent negligent, the plaintiff would recover: A) 70 percent of the damages B) all of the damages C) none of the damages D) 30 percent of the damages
A
In most states dram acts apply to: A) liquor stores, bars, and restaurants but not to social hosts B) liquor stores, bars, and restaurants and to social hosts C) social hosts, liquor stores, and bars D) none of the above
A
Judge Zellar was asked to decide if a plaintiff could see the interrogatories procured by the defendant. The judge viewed the documents alone and decided that they should be made available to the plaintiff. The judge made: A) an in camera inspection B) a motion to compel answers to interrogatories C) a request for admission D) a request for the production of documents
A
Kyle was eating clam chowder soup in a restaurant when a very small piece of bone lodged in his throat. Fortunately, he was able to remove the bone with his fingers. However, he was upset by the incident and sued the restaurant for negligence. The most likely result would be: A) Kyle will not collect any damages since he did not sustain any damages B) Kyle will collect damages as bones in chowder are common C) Kyle will collect damages if he proves it was possible to prevent tiny fish bones from being present in clam chowder D) Kyle will collect damages, as res ipsa loquitur applies
A
The Consumer Product Safety Commission (CPSC) is an independent federal administrative agency. Which statement is correct about the chairperson? A) the chairperson serves at the whim of the President and can be fired at any time B) the chairperson can only be fired by the President for good cause C) the chairperson cannot be fired by the President since the CPSC is an independent agency D) the chairperson has a lifetime appointment and cannot be fired
C
The Minnesota legislature passed a law requiring that employers allow each employee adequate time within each four consecutive hours of work to utilize the nearest convenient restroom. This law is: A) an executive order B) an ordinance C) a statute D) a stare decisis
C
The burden of proof required in a criminal case is: A) clear and convincing B) a preponderance C) beyond a reasonable doubt D) highest degree of honesty
C
The doctrine of stare decisis: A) makes the legal process more expensive B) is an equitable remedy C) makes the law more predictable D) is unimportant to the common law
C
The fraudulent conversion of property which is already in the defendant's possession is: A) money laundering B) exclusion C) embezzlement D) trespassory taking
C
Theft is to the criminal law as _______ is to the civil law A) stealing B) appropriating C) conversion D) trespass
C
West Virginia passed a statute regulating working conditions in its mines. If the statute is challenged in court on substantive due process grounds: A) it would be presumed invalid and would be struck down since it involves a fundamental right to work B) it would be presumed invalid but would be struck down only if it is not necessary to achieve a compelling government interest C) it would be presumed valid since it regulates economic or social conditions D) it carries no presumptions, but must be evaluated based on the procedures involved
C
When Congress passed a criminal statute called the "Gun-Free School Zones Act," the Supreme Court ruled that: A) the law was valid as a proper exercise of the power to regulate interstate commerce B) the law was void for vagueness; thus, it was not valid C) the law was not valid since Congress exceeded its power under the Commerce Clause D) although the law was not a proper exercise of the power to regulate interstate commerce, Congress had the power to create such legislation on other grounds. Therefore, the statute was valid
C
Which law regulates how federal agencies make rules, conduct investigations, hold meetings and hearings, obtain information, and reach decisions? A) the 1964 Civil Rights Act B) the Clean Agency Act C) the Administrative Procedure Act D) the Freedom of Information Act
C
Which of the following statements about torts is correct? A) a tortious act is always a criminal act B) a criminal act is always a tortious act C) a tortious act may also be a criminal act D) all of the above are correct
C
Henry David Thoreau felt that war was unjust and therefore refused to pay his taxes when the United States declared war on Mexico. Thoreau felt that there was a higher law than the law of the land. Which theory of jurisprudence was he applying? A) legal positivism B) natural law C) legal realism D) common law
B
Holt and Collins decide to have their dispute arbitrated by Corrales. Which of the following will NOT be a result of the arbitration? A) Corrales will render a binding decision B) Holt and Collins retain the right to a class action C) Holt and Collins give up the right to discovery D) Corrales need not give reasons for the decision
B
If there is a conflict between a state and federal law, generally the federal law will prevail because of the: A) federalism doctrine B) supremacy clause C) paramount doctrine D) interstate commerce clause
B
Ikerd was entering the US from a trip abroad when the Customs Service confiscated some goods she had purchased and brought back with her. The determination of whether the government is attempting to take property and what type of hearing the Customs Service must offer Ikerd, is an analysis of: A) substantive due process B) procedural due process C) the takings clause D) eminent domain
B
Laura, a brain surgeon, committed a negligent act when she ran a red light and injured Randy, a pedestrian crossing the street. Randy was a mentally impaired adult. A) the "reasonable person" standard does not apply to Laura since she is an extraordinary person B) both Laura's and Randy's conduct will be based on the "reasonable person" standard C) the "reasonable person" standard does not apply to Randy since he is mentally impaired D) the "reasonable person" standard does not apply to Laura nor Randy given their respective degrees of extreme intelligence (one high and one low)
B
President Nixon issued wage-price controls in an effort to stabilize the economy. This use of executive power was: A) an illegal usurption of legislative powers which belong to the Congress B) a valid use of power, known as an executive order C) a valid use of power creating a treaty D) an illegal usurption of the regulatory powers of administrative agencies
B
Randi, a resident of Oregon, was involved in an auto accident while in Idaho. The other party lives in Wyoming. Randi wishes to recover $28,000 cost to repair her car. The most appropriate court for her to file her lawsuit is in a: A) federal court in Idaho B) state court in Idaho C) federal court in Wyoming D) federal court in Oregon
B
Runyon was ready to sign a two-year agreement with Barnett Corp. to become Barnett's sales representative for a three-state area. LaPrise, who wants to be the representative for that area, threatens Runyon with bodily harm if he takes the position. Runyon decides his physical well being is more important to him than the job, so he does not accept the position. LaPrise: A) committed tortious interference with a contract B) committed tortious interference with a prospective advantage C) committed a battery D) caused a breach of contract and committed the tort of intrusion
B
The President of the United States: A) creates federal common law B) can veto Congressional legislation C) determines the constitutionality of statutes D) passes statutes
B
The Supreme Court's approach during the period from the 1950s through the 1970s in deciding cases on constitutional grounds is described as: A) judicial restraint B) judicial activism C) judicial review D) the dormant aspect of its judicial power
B
The notion of civil disobedience is founded on what principle: A) legal positivism B) natural law C) legal realism D) forseeability
B
The primary source of federal power to regulate business is the: A) supremacy clause B) commerce clause C) contract clause D) privilege and immunities clause
B
Under a state law, a dog owner is absolutely liable to any person who is injured by the dog. This is an example of: A) negligence per se B) strict liability C) res ipsa loquitur D) negligence
B
A jury decision in a civil case: A) must be unanimous B) must be reached in the same day the case is heard C) depends on whether or not the parties have agreed to have their case decided by less than a unanimous verdict D) is achieved by informal deliberations
D
What is the major distinction between executive and independent agencies? A) executive agencies govern business issues while independent agencies regulate individual matters B) the President has greater control over executive agencies C) the Administrative Procedures Act regulates independent agencies but not executive agencies D) subpoenas may be issued by independent agencies; executive agencies do not have subpoena power
B
When a judge orders a criminal defendant to reimburse the victim, it is called: A) reimbursement B) restitution C) restraint D) reformation
B
Which of the following is a true statement about tort reform? A) almost all the states have passed statutes limiting the amount a jury can award in a tort case B) Congress has proposed and debated bills placing limits on tort awards, but so far has not enacted such legislation C) large medical malpractice awards account for about 60 percent of the dramatic increase in health care costs in the United States during the last two decades
B
Which of the following played a role in the creation of the US government by solving the problem of federalism? A) The Visigoths B) The Iroquois Native Americans C) Confucius D) Alexis de Tocqueville
B
A civil case generally proceeds as follows: A) answer, complaint, discovery, trial, verdict B) complaint, answer, trial, discovery, verdict C) complaint, answer, discovery, trial, verdict D) discovery, complaint, answer, trial, verdict
C
An inmate in a state prison claims his US constitutional rights prohibiting cruel and unusual punishment are being violated by the state correctional facility. This case: A) may not be decided by a federal court since it involves a state facility B) must be decided by the state court where the inmate established residency before going to prison C) is a federal question case over which the federal courts have jurisdiction D) cannot be heard, as prisoners lose the right to sue
C
If a court applies res ipsa loquitur: A) the plaintiff needs to prove the case by a preponderance of the evidence B) the plaintiff must prove the case by clear and convincing evidence C) the defendant has the burden of proving he or she is not liable D) the defendant is strictly liable
C
If the title of an appellate court case appears as Jones v. Smith: A) Jones is the plaintiff and Smith is the defendant B) Smith won the trial court decision C) You cannot determine which party is the plaintiff, because when a defendant loses a trial and files an appeal, some courts (but not all) reverse the names of the parties D) the trial judge was Jones and the appellate judge is Smith
C
Roger assaulted Jim in a tavern, causing medical expenses and lost wages. Which of the following is true? A) Roger can be prosecuted by the state for a criminal offense and Jim may sue him for money damages B) If Roger is convicted of criminal assault, Jim is not allowed to sue him for money C) If Jim refuses to press charges against Roger, the state cannot initiate a criminal proceeding against him. D) Jim can either elect to sue for money damages or proceed with criminal charges
A
Sara sent letters to 1,000 people offering to send them information that would guarantee them a profit in the stock market if they sent her $999.95. If they sent her the money, the brief, generally known information she sent them said: "Buy stocks when their prices are low, and sell when the prices are high." Sara is guilty of: A) mail fraud B) larceny C) embezzlement D) nothing. She merely thought of and executed a clever way to make money
A
The US has taken a position that legal issues are best resolved by lawsuits involving parties with conflicting interests presenting their strongest possible case to a neutral factfinder. Because of this, the legal system in the US is considered: A) an adversary system B) a conflict system C) an alternative dispute resolution system D) a mediation system
A
The biggest change in litigation in the last decade is: A) an explosive rise of electronic discovery B) a decrease in the use of discovery C) the replacement of interrogatories with depositions D) the use of juries in appellate courts
A
The elements in a defamation case are: A) defamatory statement; falseness; communication; and injury B) a contract; knowledge of the contract; improper inducement; injury C) false or misleading fact statements; statements in commercial advertising; likelihood of harm D) duty; breach of duty; proximate causation; and damages
A
The last protected trait added by Congressman Smith of Virginia to the bill which became Title VII of the Civil Rights Act of 1964 was: A) sex (gender) B) sexual orientation C) national origin D) race
A
The primary purpose of RICO was: A) to be a tool against organized crime B) to raise revenue C) to prosecute non-citizens D) to prosecute those engaged in tax fraud
A
The test of "foreseeability" is generally used to determine the existence of which element of a negligence case? A) duty of due care B) breach C) factual cause D) injury
A
Which of the following elements is not necessary to apply the doctrine of res ipsa loquitur? A) an ultra hazardous activity is involved B) the defendant had exclusive control of the thing that caused the harm C) the harm would normally not have occurred without negligence D) the plaintiff had no role in causing the harm
A
A customer in a restaurant would be considered _______ to whom the restaurant owner owes a duty _______ A) a licensee; to warn of known dangers B) an invitee; of reasonable care C) a social guest; only to avoid intentionally injuring him D) none of the above
B
A misdemeanor is distinguished from a felony based upon: A) the rules of evidence B) the length and place of possible imprisonment C) the burden of proof D) the type of intent
B
A national magazine published an article about a famous television star. The television personality is upset because the information contained in the story is not correct. If the actress sues the magazine: A) she will need to show that the magazine has a history of being "reckless" with facts on a regular basis B) she will need to show that the magazine either knew the story was false or acted with reckless disregard of the facts C) she will need to show that the magazine failed to attempt to verify the story by trying to contact her or her agent before the story was printed D) she will need to show that the magazine could have discovered that the story was false but failed to do so
B
One morning, Miles placed a thumbtack on the chair of the office manager where he worked. He had no quarrel with the office manager, but thought this would be funny. Two days after sitting on the tack, the office manager was hospitalized with an infection caused by the tack. Which of the following is correct? A) Miles actions were negligent B) no tort has been committed C) Miles committed an intentional tort D) Miles is strictly liable
C
Curtis filed a lawsuit against Ulhoff for failure to repay $1,000 according to the terms of a promissory note. The trial ended before it began, with the trial judge granting a motion for summary judgment in favor of Curtis. Ulhoff has appealed, and the Supreme Court of Iowa has remanded the case. This means: A) Curtis automatically wins because he won in the lower court B) Ulhoff automatically wins because he won in the lower court C) Neither party wins because the case is being thrown out D) We don't know who wins yet because the case is being returned to the trial court for additional steps
D
Federal jurisdiction based upon a "federal question" includes cases based on: A) the US Constitution B) a federal statute C) a federal treaty D) all of the above
D
Generally, constitutional protections do NOT apply to: A) acts of the federal government B) acts of state government C) acts of administrative agencies D) acts of privately owned businesses
D
In a negligence case, the plaintiff must establish: A) duty, strict liability, causation, and injury B) mens rea, breach, foreseeable harm, and injury C) duty, actus reus, foreseeable harm, and causation D) duty of due care, breach, causation, foreseeable harm, and injury
D
Roberto sued Monica for injuries received in a traffic accident. If Monica does not respond to the complaint and summons served by Roberto within the prescribed time limits, Roberto may obtain a: A) judgment on the pleadings B) summary judgment C) pretrial conference D) default judgment
D
TECO Coal Corporation mines and ships more than six million tons of coal annually. TECO is comprehensively regulated by the US Bureau of Mines. The US Bureau of Mines may conduct a surprise inspection of one of TECO's mines: A) only if it has a search warrant B) only if it has a subpoena C) only if it has reason to believe a violation of a regulation has occurred D) without a search warrant to ensure safety
D
The Environmental Protection Agency was investigating whether Exgrow, Inc. violated the Clean Air Act. Exgrow refused to give the EPA its computerized reports concerning pollution. To get the reports, EPA should use: A) a stare decisis B) a de novo C) an excaliber D) a subpoena duces tecum
D
The Occupational Safety and Health Administration promulgated a rule requiring warehouse employees to wear hardhats when in the vicinity of an operating forklift. The purpose of the hardhats is to protect employees from danger of falling objects. This rule is: A) an executive order B) a statute C) common law D) administrative law
D
The doctrine of preemption is based on the Constitution's: A) commerce clause B) due process clause C) equal protection clause D) supremacy clause
D
The intent to commit a burglary would be: A) a general intent B) reckless conduct C) strict liability D) specific intent
D
The power of federal agencies is limited by: A) statutory control in the enabling legislation and the Administrative Procedures Act B) political control by Congress and the President C) judicial review D) all of the above
D
The purpose of the Freedom of Information Act (FOIA) is: A) to give the government access to information concerning citizens, businesses, and organizations B) to limit the amount of information that the government can collect about its citizens, businesses, and organizations C) to permit warrantless searches and seizures of evidence when necessary to ensure safety D) to give citizens, businesses, and organizations access to information that federal agencies are using
D
Trein, Inc. entered into a one-year, $1 million contract with Mia, a sports celebrity, to promote Trein's products. E-presto Inc., a competitor of Trein, was interested in having Mia promote its products but knew of her contract with Trein. E-presto offered Mia a three-year, $5 million contract. Mia left Trein and signed with E-presto. If Trein sues E-presto for tortious interference with a contact, E-presto: A) will be able to establish a justification since E-presto was acting to protect an existing economic interest B) will be able to establish a justification because, in talking to Mia, E-presto was exercising its First Amendment freedom of speech C) will be able to establish a justification because to decide otherwise would subject Mia to involuntary servitude D) will not be able to establish a justification
D
Which of the following is not an example of a trial court of limited jurisdiction? A) a probate court B) a juvenile court C) a small claims court D) a general division court
D
Jerry believes his co-worker, Ben, is using illegal drugs. Since both he and Ben are nurses, Jerry is concerned Ben's drug usage could result in injury to a patient. He tells his supervisor, Cyndi. Cyndi talks with Jerry about the alleged drug usage and Ben produces a bottle of prescription medicine he is required to take for high blood pressure. The medication does not affect his ability to do his work. When Ben learns it was Jerry who reported him, Ben claims that Jerry committed an act of defamation when Jerry told Cyndi he used illegal drugs. Is Ben right? A) Yes. Jerry committed slander. B) Yes. Jerry committed libel. C) No. Ben is, in fact, using drugs. D) No. Jerry is protected by the qualified privilege defense.
D
Jim told his manager, Lana, that a co-worker, Diane, had been in prison for theft. Lana checked into the matter and, when she learned that Diane had served time in prison for theft, fired her. A) Jim is liable to Diane for defamation B) Jim is liable to Diane for defamation unless he can show a legitimate reason for having to tell Lana about Diane's prison history C) Jim is liable to Diane for defamation only if she is a public figure D) Jim is not liable to Diane for defamation
D
Phillip was waiting for a bus at a bus stop. Across the street and down the block, a mechanic negligently overinflated a tire he was intending to put onto Marsha's pickup truck. The exploding tire injured Marsha and frightened a neighborhood dog, which ran down the street and knocked Phillip down, injuring his knee. Phillip sued the mechanic. In applying the Palsgraf v. Long Island Railroad Co. decision to this case, Phillip would: A) win because the mechanic was negligent in over inflating the tire, which led to Phillip's injury B) win based on negligence per se C) lose because the court would apply the doctrine of res ipsa loquitur D) lose because, although the mechanic's conduct was negligent toward Marsha, it was not a wrong in relation to Phillip, who was far away. The mechanic could not have foreseen injury to Phillip and therefore had no duty to him
D
An intentional tort involves conduct in which: A) the defendant intended to harm the plaintiff B) the defendant intended a certain physical act which ends up injuring someone C) injuries are caused to someone because of the defendant's neglect or oversight D) there is resulting punishment, including prison, for the defendant
B
Negligence concerns harm that: A) is unforeseeable B) arises intentionally C) arises by accident D) is always substantial
C
