Business Law Test
Generally, a state court's power is limited to the territorial boundaries of the state in which it is located and the immediately adjacent states. True False
False
To be a "good citizen," when making decisions a business should not evaluate the public relations impact. True False
False
eing a small-business owner means that you will never have to take on the role of finance manager, marketing manager or accountant. True False
False
he terms "due process" and "equal protection" mean the same thing. True False
False
A closing argument is a statement by a party that results in a summary judgment in that party's favor. True False
False
Administrative law is a source of American law that is comprised of statutes. TrueFalse
False
An answer never admits to the allegations made in a complaint. True False
False
Federal courts are superior to state courts. True False
False
On a motion for judgment on the pleadings, a court may consider evidence outside the pleadings. True False
False
Under the Constitution, the judicial branch is responsible for foreign affairs. True False
False
A deposition is sworn testimony by a party to a lawsuit or any witness. True False
True
Business ethics focuses on ethical behavior in the business world. True False
True
Equity is a branch of law founded in justice and fair dealing that seeks to supply a remedy when no adequate remedy at law is available. True or False
True
Individuals have a right to obtain access to information about them collected in government files. True False
True
Money or property, including land, are remedies at law. True False
True
The judicial branch has the power to hold actions of the other branches of government unconstitutional. True False
True
Under the Constitution, the judicial branch interprets the laws. True False
True
Bribery of foreign government officials is both an ethical and a legal issue. True False
True
Businesspersons are expected to make decisions that are ethically sound. True False
True
Compliance with the law does not necessarily fulfill all ethical obligations. True False
True
Corporations can be good citizens by promoting goals that society deems worthwhile. True False
True
Corporations can be perceived as owing ethical duties to groups other than their shareholders. True False
True
Ethics can be highly subjective and subject change over time. True False
True
Interrogatories are written questions for which written answers are prepared and signed under oath. True False
True
Law consists of enforceable rules governing relationships among indi-viduals and between individuals and their society. True False
True
Laws and government regulations affect almost all business activities. True False
True
Many different laws may apply to a single business transaction. True False
True
Procedural due process requires that any government decision to take a person's property must be made fairly. True False
True
Substantive due process focuses on the substance of legislation. True False
True
The First Amendment protects corporate political speech. True False
True
The United States Supreme Court has original jurisdiction in some situations. True False
True
The effectiveness of a company's code of ethics is determined by the commitment of the company leadership to enforcing the code. True False
True
The Arizona Supreme Court rules against Jennifer in a case against Kut Rate Stores, Inc. Jennifer wants to appeal her case to the United States Supreme Court. She must ask the Court to issue a writ of jurisdiction. certiorari. appeal. summons.
certiorari.
The Texas Supreme Court decides the case of Livewire Co. v. Power Corp. Of nine justices, five believe the judgment should be in Livewire's fa-vor. Justice Bellamy, one of the five, writes a separate opinion. The four justices who believe the judgment should be in Power's favor join in a third separate opinion. Refer to Fact Pattern 1-1. Bellamy's opinion is a majority opinion. a per curiam opinion. a concurring opinion. a dissenting opinion.
concurring opinion
Destiny and Eduardo, investors in Competitive Acquisitions Corporation, are dissatisfied with the profit-maximization theory of corporate objectives. These investors and others who look beyond profits and dividends may consider the triple bottom line, which does not include a corporation's impact on people. congressional lobbying activities. impact on the planet. profits.
congressional lobbying activities.
Serenity City enacts an ordinance that bans the use of "sound amplifying systems" on public streets. Tyler wants to campaign for a seat on the city council by broadcasting his message through speakers mounted on a truck. In Tyler's suit against the city, a court would likely hold the ordinance to be constitutional under the First Amendment. justified by the need to protect individual rights. necessary to protect national interests. an unconstitutional restriction of speech.
constitutional under the first amendment.
As a judge, Bonnie applies common law rules. These rules develop from administrative regulations. federal and state statutes. proposed uniform laws. court decisions.
court decisions
In Kettle Cafe's suit against Food Services, Inc., the court issues a judgment in Kettle's favor. The judgment can be appealed to an appropriate court of appeals by Kettle only. neither party. Food Service only. either party.
either party.
Jack and Jill, citizens of Vermont, are involved in a case related to the adoption of their child. Over this case, the Vermont state courts have concurrent jurisdiction with federal courts. no jurisdiction. exclusive jurisdiction. concurrent jurisdiction with other state courts.
exclusive jurisdiction
Ridgeline Excavation & Construction, LLC, creates an internal code of ethics. Like the codes of other firms, Ridgeline's company code is not an outline of the company's policies. a guide for decision makers facing ethical questions. law. a set of rules that the company can enforce.
law
Any decision by the management of Fast-Food Franchise Corporation may significantly affect its operators only. suppliers, the community, or society as a whole only. owners only. operators, owners, suppliers, the community, or society as a whole.
operators, owners, suppliers, the community, or society as a whole.
Jon, a law enforcement official, monitors Kelsey's Internet activities—e-mail and Web site visits—to gain access to her personal financial data and student information. This may violate Kelsey's right to procedural due process. privacy. equal protection of the law. substantive due process.
privacy
Julia, the head executive of Fine Woolen Sweaters, Inc., is a committed Christian who strongly adheres to the Ten Commandments. One of Julia's employees is found to be stealing sweaters and giving them to a local homeless shelter. Julia is likely to gently reprimand the employee without suggesting that the employee's actions were unethical. contribute more sweaters to the homeless shelter. view the employee's actions as justified because the employee was clothing the poor. punish the employee for stealing even though the employee's motive was benevolent.
punish the employee for stealing even though the employee's motive was benevolent.
Sandy, a resident of Illinois, wants to file suit against Carl, a resident of Kansas, over Carl's failure to pay Sandy for work on his house. The amount in dispute is $15,000. Under diversity of citizenship requirements, a federal cannot exercise jurisdiction in this case because the amount in controversy is less than $75,000. a state court has not yet ruled in the suit. the parties are citizens of different states. the dispute concerns property, not persons.
the amount in controversy is less than $75,000.
Bailey, the president of Carmichael Commodities Company, claims that certain actions by the federal government and by the state of Delaware infringe on rights guar-anteed by the Bill of Rights. All of these rights limit Delaware only. the federal government only. Delaware and the federal government. neither Delaware nor the federal government.
the federal government only.
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 the defendant. the persuasive authority. the binding authority. the plaintiff
the plaintiff
Hailey, a lawyer on the staff of International Group, always considers the consequences of an action rather than the nature of the action itself when making ethical decisions in a business context. Hailey is applying the principle of rights theory of ethics in business contexts. religious beliefs in business contexts. the utilitarian theory of ethics in business contexts. Kantian ethics in business contexts.
the utilitarian theory of ethics in business contexts.
Beth is a victim of Carl's violation of a criminal law. Criminal law is concerned with the prosecution of private individuals by other private individuals. wrongs committed against the public as a whole. the relief available when a person's rights are violated. the prosecution of public officials by private individuals.
wrongs committed against the public as a whole
Congress enacts a law that sets out a rigorous medical-device premarket approval process for the U.S. Food and Drug Administration to follow. The law includes a preemption provision. Moe is injured by a device that underwent the process and files a claim under New Hampshire state law to recover for the injury. The court will most likely rule that the federal law preempts Moe's state law claim. Moe's state law claim preempts the federal law. the federal law and state law claim are concurrent. the federal and state law claim cancel each other out.
Moe's state law claim preempts the federal law.
Elinor sells Cathy a horse for $2,000. When Elinor goes to the bank to deposit Cathy's check, the check bounces. Elinor is furious and files suit against Cathy. Elinor probably filed her suit in a municipal court. a small claims court. a probate court. a domestic relations court.
a small claims court.
In Benny v. City Car Dealership, a state supreme court held that a minor could cancel a con-tract for the sale of a car. Now a trial court in the same state is decid-ing Daphne v. Even Steven Auto Deals, Inc.,, a case with similar facts. Under the doctrine of stare decisis, the trial court is likely to disregard the Benny case. allow the minor to cancel the contract. order the minor to cancel the contract. require the minor to fulfill the contract.
allow the minor to cancel the contract.
Savers Mart, Inc., distributes its merchandise to retail outlets on an inter-state basis. Under the commerce clause, Congress has the power to regulate any commercial activity in the United States. only activities that are in intrastate commerce. only activities that are not in commerce. only activities that are in local commerce.
any commercial activity in the United States.
Fact Pattern 2-1 (Questions 31-33 apply) Bean Vendors, Inc., and Java Bistros Corporation dispute a term in their contract. Refer to Fact Pattern 2-1. If Bean and Java resolve their dispute by having a neutral third party render a binding decision, they will have used the method of intervention. conciliation. mediation. arbitration.
arbitration
Solar Power, Inc., files a suit against Thunder Bay Utility Company and seeks to examine electronic documents in Thunder's possession. A legitimate reason for this examination is that the documents contain evidence about the case. private information about Thunder's operations. irrelevant data that can be eliminated from consideration. public information about energy generation.
evidence about the case.
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 less extensive protection than noncommercial speech. no protection. more extensive protection than symbolic speech. the same protection as defamatory speech.
less extensive protection than noncommercial speech
Fact Pattern 2-1 (Questions 31-33 apply) Bean Vendors, Inc., and Java Bistros Corporation dispute a term in their contract. Refer to Fact Pattern 2-1. The least expensive method of resolving the dis-pute between Bean and Java may be negotiation because no third parties are needed. arbitration because the case will be heard by a mini-jury. mediation because the dispute will be resolved by a non-expert. litigation because each party will pay its own legal fees.
negotiation because no third parties are needed.
A common ethical dilemma faced by the management of Spencer Hydraulics Corporation involves the effect that its decision will have on one group as opposed to another. the government. the U.S. Chamber of Commerce. the firm's competitors
one group as opposed to another
Leona enters into a contract with Munchie 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 specific performance. an action that the court cannot order. an injunction. rescission.
rescission.
Civil law has to do with the wrongs committed against society for which society demands redress. establishes the methods of enforcing the rights established by criminal law. defines, describes, regulates, and creates legal etiquette. spells out the rights and duties that exist between persons and between persons and their governments.
spells out the rights and duties that exist between persons and between persons and their governments.
At a meeting of employees, Fuel Injection Design & Manufacturing, Inc.'s managers announce the creation of a new company-wide code of ethical conduct and the initiation of an ad campaign to publicize the new code. They also say that any employees who do not adhere to the code will be discharged. The effectiveness of this code will be determined by a marketing campaign posted online to tout the firm's ethical tone. the extent to which the employees comply with the code. the commitment of company leadership to enforcing the code. management directing employees to "do as we say, not as we do."
the commitment of company leadership to enforcing the code.
Precision Engineering Inc., like other corporations, is subject to laws that are broad in their purpose and their scope. Compliance with these laws is not always sufficient to determine "right" behavior because company codes are also sources of law. ethical problems occur in business. the law does not codify all ethical requirements. business decisions can have negative impacts.
the law does not codify all ethical requirements
Starlight Café brings a suit, seeking a remedy at law. A remedy at law is a judicial proceeding for the resolution of a dispute. a decree of specific performance. an injunction. the payment of money or property as compensation for damages.
the payment of money or property as compensation for damages.
A federal law regarding the labeling of pesticides directly conflicts with a state law. The state law will be rendered invalid due to the the First Amendment. the supremacy clause. the federal spending power. the commerce clause.
the supremacy clause.
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 the supremacy clause. the equal protection clause. the commerce clause. the due process power.
the supremacy clause.
