Business Law Test 1

Under diversity of citizenship requirements:

A federal court cannot take jurisdiction because the amount in controversy is less than $75000

Elinor is furious and files suit against Cathy. Elinor probably filed her suit in:

A small claims court

Precedent

An earlier event or action that is regarded as an example or guide to be considered in subsequent similar circumstances

What constitutional clause gives the federal government the power to regulate commercial activities among the various states?

Commerce Clause

What are the four primary sources of law in the United States?

Constitutions, statutes, cases, and regulations

Straitway Company encourages its managers to behave ethically, reasoning that the employees will take their cues form management. One of the most important ways to create and maintain an ethical behavior workplace is for management to:

Demonstrate a commitment to ethical decision making

In studying the legal environment of business Professor Dooley's students also review ethics in a business context. Ethics includes the study of what constitutes:

Fair or just behavior

A default judgement entered against the party who brought the claim before the court? True or False?

False

Business ethics not more complicated than personal ethics. True or False?

False

Cases involving diversity of citizenship arise only between citizens of different statutes. True or False?

False

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 or False?

False

Small claims courts hear both civil & criminal cases? True or False?

False

What freedoms does the first amendment guarantee?

Freedom of Religion, Speech, Press, Assembly, and Petition

Jack and Jill, citizens of Vermont, are involved in a case related to the adoption of their child. The Vermont state courts:

Have exclusive jurisdiction over this case

What are six guidelines that an employee can use to evaluate whether his or her actions are ethical?

Law, rules, values, conscience, promises, and heroes

The statute that allows the Texas court to exercise jurisdiction over Megan is called a(n):

Long arm statute

A business firm can sometimes predict whether a given action is legal. True or False?

True

A deposition is a sworn testimony by a party to a lawsuit or any witness. True or False?

True

A state long arm statutes allows a court to exercise jurisdiction over out-of-state defendants based on activities that took place within the state. True or False?

True

Acting in good faith gives a business firm a better chance of defending its actions in court. True or False?

True

An action may be legal but not ethical. True or False?

True

Business ethics focuses on ethical behavior in the business world. True or False?

True

Ethics is concerned with the fairness or justness of an action. True or False?

True

Focusing on a firm's short-term profits without considering the company's long-term needs may be acting unethically? True or False?

True

Sometimes, however, he is unsure exactly what is legal and what is illegal. David should:

Try his best to not do anything illegal and keep documentation showing that he always acts in good faith.