EXAM 1 BUSN 2155
Which of the following statements are applicable to the doctrine of stare decisis? Choose 2 answers.
A lower court must follow the precedent of a decision made by a higher court in the same jurisdiction. Stare decisis is a principle that arose out of the common law.
Which of the following is a correct statement of federal preemption of state law under the Supremacy Clause? Choose 2 answers.
A state law that requires documentation of citizenship is preempted by the National Voter Registration Act because the act only requires a statement under oath. A state's attempt to regulate television and radio is preempted by federal law because the federal government has regulated the entire field.
What situation would NOT be regulated by the federal government under the Commerce Clause?
A state requiring lawyers practicing in the state to be licensed
What is the role of an administrative law judge (ALJ)?
An ALJ is an employee of the agency bringing the charges.
Which of the following statements correctly reflects the role of a federal administrative law judge (ALJ)?
An ALJ presides over an administrative hearing and issues an order that, when final, may be reviewed by a court.
Federal courts have exclusive subject matter jurisdiction over which of the following? Choose 2 answer choices.
Bankruptcies Patent/trademark/copyright cases
What are two types of challenges an attorney can make during voir dire?
Challenge for cause Peremptory challenges
Which of the following create federal statutes?
Congress
What is true of corporate political speech? Choose 2 answers.
Correct answer.Political donations are protected by the First Amendment as types of corporate political speech. Corporate political speech is protected by the First Amendment.
Which of the following illustrates a financial or non-financial cost of unreported unethical behavior to a company? Choose 2 answers.
Employee morale hit an all-time low when Scott, the line supervisor, ignored repeated instances of harassment by certain employees. Sweet Home Diner lost half of its business when the community became outraged with the owner for failing to stop the racist social media postings of the restaurant manager.
Which of the following are considerations of corporate social responsibility? Choose 3 answer choices.
Ethical treatment of employees and suppliers Issues within the community where a business is located Environmental impact of a business
What is preemption in the Supremacy Clause?
Federal law is supreme over state law.
CHAPTER 4 You participate in Black Lives Matter protests and have begun studying the issues raised about police officers. Your local protest group believes the budget of the local police department should be made public as well as the training manuals used to prepare recruits for the job. You and the group want this information to help assess the effectiveness of the police department. For example, is the money well spent? Is training appropriate? What law enables citizens to obtain information from the government about a subject of interest when a written request is made?
Freedom of Information Act
Under the common law, which of the following is true?
In a case of first impression, a judge may use persuasive authorities rather than precedents.
Which classification or scrutiny would be appropriate for a court to use to examine a state regulation requiring firefighters to be men because of the demanding physical requirements of the job?
Intermediate Scrutiny
A restriction on commercial speech will be valid if it meets three criteria. What are they? Choose 3 answers.
It must not be overly restrictive to meet its objectives. It must directly advance a government interest. It must seek to implement a substantial government interest.
The U.S. Constitution does which of the following? (Choose 3 answer choices)
It provides for the fundamental rights of citizens. It divides ruling authority between a state and the federal system. It creates three branches of government.
Which of the following lists the steps of a trial in the correct chronological order from beginning to end?
Jury selection, opening statements, plaintiff's case, defendant's case
Under which principle of ethics would a person consider whether his or her action is one that every other person should take?
Kant's categorical imperative
Substantive due process places which requirements on all governmental infringements of rights, whether those rights are fundamental or not? Choose 2 answer choices.
Legislation must be fair and reasonable in content. Legislation must further a legitimate governmental objective.
What restrictions on business speech are allowed by the First Amendment? Choose 2 answer choices.
Limitations on advertisements for alcohol Some advertising venues for tobacco
Which of the following are the TWO types of ADR that results in parties voluntarily signing a settlement agreement rather than proceeding to trial? Choose 2 answer choices.
Mediation Negotiation
Which classification or scrutiny would be appropriate for a court to use to examine a state law regulating the price of milk. Choose 2 answer choices.
Minimal Scrutiny Rational Basis Test
Which of the following statements explains the formation and purpose of a federal administrative agency? Choose 2 answers.
Most federal administrative agencies are subject to the authority of the president, but some are independent. An administrative agency is formed by enabling legislation that also provides the authority to establish regulations that will implement and enforce the law.
What must a party do before appealing an agency action in the court system? Choose 2 answer choices.
Must follow the agency appeal process. Must show direct harm.
The belief that as humans we are all entitled to certain fundamental rights is a component of which school of thought?
Natural Law
Mexico, the United States and Canada entered into the United States-Mexico-Canada Agreement (USMCA) in 2020. One provision of the USMCA prevents any party from passing laws that restrict the cross-border flow of data. Mexico passes a statute that restricts the cross-border flow of data from England. Is the Mexican statute a violation of the USMCA?
No, the Mexican statute is not a violation of the USMCA because England is not a signatory to the USMCA.
Roger has worked for an agency, the Federal Reserve, for ten years. Recently, Roger has heard rumors that multiple employees have contracted COVID-19, a highly contagious and potentially dangerous disease, although they have recovered completely. Nevertheless, Roger is still concerned about being around these people, so Roger asks his employer, the Federal Reserve, for a list of these employees. The Federal Reserve refuses, so Roger files a Freedom of Information Act (FOIA) request for the information. Under the FOIA, will the Federal Reserve provide Roger this list?
No, this information is confidential and personal.
CHAPTER 5 You are employed as a receptionist at an upscale restaurant with a large base of regular customers. One of your male co-workers recently announced he is transitioning to female and will soon begin to dress and present as a woman. Your co-worker has earned praise from your boss and outstanding performance reviews. Your employer is concerned, however, that customers will be uncomfortable by the transition and will find other places to enjoy a meal. As a result, your employer terminates your coworker from his job. Your coworker is offended and angry and wants to take action to get the job back. Can the employer legally terminate employees on the ground they are transgender?
No, transgender employees are protected by the Equal Protection Clause and the Civil Rights Act of 1964.
Samantha has been the top salesperson at her company for the last six months in a row. Samantha has been using high-pressure techniques to meet the unrealistically high sales quotas in her division, including marking up the price so she can offer a good discount to the customers, lying about the quality of the product, and telling customers that the items are one-of-a-kind when they are not. Her manager, Samuel, is aware of the tactics Samantha is using but does not say anything because Samantha makes their division look great. Here, the parties guilty of unethical behavior include:
Samantha and Samuel.
What business speech is protected by the First Amendment?
Some types of advertising
The Administrative Procedure Act (APA) is the federal law that does which of the following?
The APA sets out the rule-making process for administrative agencies.
What are the benefits of the exhaustion doctrine?
The exhaustion doctrine requires resolution of disputes within the agency without involving the court system, except when necessary.
The president signs an executive order declaring that any president may now run for three terms of office instead of two. How could his/her power be checked by the legislative branch?
The legislature could impeach him/her.
Which of the following is a true statement of the powers of a branch of the federal government?
The power to enact laws is vested in the legislative branch.
Who is authorized to enter into treaties under the Constitution?
The president
Agency rules are similar to statutes because of which one of the following?
They are legal requirements and binding as if Congress has passed them.
CHAPTER 2 You are the manager of a sandwich shop called Buns-R-Us, which has twelve employees. The corporate office has a very robust ethical code of conduct for employee behavior and has trained each employee on it. On a personal level, you disagree with some of the rules. And, because you are the manager, you choose not to follow them. When your employees see that you, as the manager, do not follow the rules, what's the likely consequence?
They will likely not follow the rules either.
What authority does the federal government have under the Commerce Clause? Choose 2 answer choices.
To regulate international commerce To regulate commerce on the national and local levels
Which of the following is the supreme law of the land?
U.S. Constitution
Where are fundamental rights protected specifically in U.S. law?
Under substantive due process
The ethical model that focuses on the outcome of a decision, as opposed to the motives behind the decision, is:
Utilitarianism
In what situations does federal law preempt state law? Choose 2 answer choices.
When Congress passes very detailed laws When Congress passes a law and creates an agency to enforce that law
A court has personal jurisdiction over a party in which of the following circumstances? Choose 2 answer choices.
When the party's property at issue in the case exists within the geographic boundaries of the authority of the court When a party brings a case in its court
Rando and Shania are involved in an automobile accident. Rando decides to sue Shania for his injuries, so he files a complaint, a formal pleading that starts the lawsuit and sets out the allegations that Rando has against Shania. Rando has the complaint, along with a summons, served on Shania to give her notice of the lawsuit. If Shania does not respond to the complaint:
a default judgment may be entered against her.
Which of the following are sources of administrative law? Choose 3 answers.
agency regulations executive orders agency opinions
Andre is involved in a business dispute with his former partner, Ned. Instead of filing a lawsuit, Andre and Ned decide to use alternative dispute resolution (ADR) to settle their dispute. Andre and Ned choose to present their case to a neutral third party, and that third party will decide the case. The form of ADR that Andre and Ned have decided to use is:
arbitration.
When the parties in a dispute present their arguments and evidence to a neutral third party who then renders a decision, it is called:
arbitration.
The role of a mediator is to:
assist parties in a dispute in resolving their differences out of court.
Steps for creating a statutory law include filing a bill in the legislature, debating and voting on the bill in committees and in the legislative assembly, and ultimately:
becoming an act when signed by the president or state governor, or if vetoed, when the veto is overridden.
Sanchez and Yan entered into a contract that required Sanchez to deliver twenty textbooks to Yan's bookstore every month by the 15th raised to the th power of the month. Six months after Sanchez and Yan entered into this contract, Sanchez breached the contract by not delivering the textbooks to Yan's bookstore. After Sanchez breached the contract, Yan sued Sanchez for her damages. Yan must choose the appropriate court in which to file her lawsuit. To do this, Yan needs to be sure the court has:
both subject matter and in personam jurisdiction in the case.
In contrast to federal courts, state courts have what kind of jurisdiction?
broad
Jayne is opening her own bakery. As she develops her company policies, she is concerned about the morality of her actions and how those actions will affect her employees, her stakeholders, and herself. Jayne studying the rightness or wrongness of her actions as they apply to her business constitutes the study of:
business ethics.
What are the three steps of a civil trial? Choose 3 answers.
closing arguments opening arguments presentation of testimony and evidence
Which of the following types of law originated from early English history in an effort to provide a body of law that applied to the entire English realm?
common law
Court orders may: (Select 2 answers)
compel a party to do something. prohibit a party from doing something.
The principle of stare decisis does which of the following?
creates predictability in the legal system
Congress passes a law making it a crime to use marijuana. The judiciary can check the power of Congress by:
declaring the law unconstitutional.
CHAPTER 3 You own a German Shepherd named Max who you love and adore. You are aware that Max is sometimes aggressive with new people. Because of that, you are usually very careful to prevent Max from running out of the house unleashed. One day, as you open the door to bring in the mail, Max escapes out of the door and attacks a woman walking in the vicinity of your home. The woman suffers significant injuries on her right arm, some of which she claims will leave permanent scars. You feel very bad about this. The woman is now suing you for $18,000 to cover her alleged medical bills, missed time at work, and pain and suffering. To prepare for the trial, you would like to review the woman's medical records, medical bills, work schedule, and salary. Additionally, you would like to have a doctor of your choosing examine her arm and assess the true extent of the injuries. What is the procedure a defendant uses to learn more about a plaintiff's claim before trial?
discovery
Which of the following activities is an example of corporate social responsibility?
establishment of a foundation that funds high school educational initiatives
What is the system of government called in which states form a union and share sovereign power with the central government of the union?
federalism
The U.S. Constitution impacts state sovereignty by requiring states to honor the public acts of another state through:
full faith and credit
An arbitrator is different than a mediator because an arbitrator:
has the authority to make a binding award.
For the past year, Zegrida has been writing a historical fiction novel based on the experiences of her family as they immigrated to the United States from Latvia during World War II. When finished, she contacted a publisher and was shocked to discover that her book had just been published two weeks ago with Fran, a business acquaintance of Zegrida, listed as the author. Two months ago, Zegrida had asked Fran to review the book and give feedback, but instead, Fran published the book under her own name. Zegrida plans to sue Fran for copyright infringement and is trying to decide in which court to sue. Zegrida must sue Fran:
in federal district court because the suit involves a copyright issue.
What is the medium level of scrutiny, sometimes called heightened scrutiny, that a court will use when deciding a case that involves a quasi-suspect class?
intermediate scrutiny
If the U.S. Supreme Court determines that a state or federal law violates the U.S. Constitution, it may:
invalidate the law.
A party may challenge a potential juror for cause if the party believes the potential juror: (Choose 3 answers.)
is a friend or relative of one of the parties. has prior knowledge of the facts of the lawsuit. is biased.
When an agency needs to enforce the law or its regulations, it may exercise which of the following powers? Choose 3 answers.
issue a subpoena conduct a hearing to obtain a final order investigate complaints and possible violations of its regulations or the law
Legal realists would claim:
it doesn't matter what the law says, but who enforces it.
Wyatt is arrested under a federal statute that makes using marijuana illegal. The state that Wyatt lives in allows recreational use of marijuana. Wyatt challenges the federal statute on the grounds that it is time for the law to change. Wyatt's argument is that recreational marijuana use is now legal in eleven states and medical marijuana use is legal in 34 states; therefore, it is time for the federal government to come into the 21st century and make the use of marijuana legal throughout the United States. Judge Sanderson is the district court judge hearing the case, and he rules that the law should not be overturned. Judge Sanderson is a proponent of the legal positivism school of legal thought. Therefore, Judge Sanderson believes that:
judges should defer to existing laws because there is no law higher than the laws created by a national government.
The judicial branch may limit an administrative agency's actions by which of the following? Choose 2 answers.
judicial review of the agency's regulations judicial review of the agency's orders on appeal
Alexander, the CEO of Westwind Baby Furnishings, received a report from one of his quality inspectors about a possible defect in the Baby Sleeptime Crib Westwind had just started to market. The report said the bed was not safe for older babies, because there was a chance it would collapse if the baby climbed up onto the railing. Westwind had manufactured 20,000 Baby Sleeptime Cribs and would lose a great deal of money if it could not market the cribs. Alexander decided to proceed with the sale of the cribs anyway, to maximize company short-run profits. Possible consequences Westwind could face for such unethical conduct include:
lawsuits, large settlements, and bad publicity.
Judge Jasper and his friend, Judge Judy, were debating the philosophical theories of jurisprudence. Judge Jasper believes that law is just one of many institutions in society and that it is shaped by social forces and needs. Judge Jasper believes in the theory of jurisprudence called:
legal realism.
Which branch of government creates statutory law?
legislative
Which branch of government has the authority to enact law?
legislative
Dion is head of the National Security Agency, a subagency of the Department of Defense. Dion has held the position for years and feels comfortable that he is secure in his position. However, after Dion holds a press conference where he directly contradicts a statement the president made, he receives a letter from the president removing him from his position. Dion objects to the firing, stating that he can only be removed from office "for good cause." If Dion sues for being wrongfully removed from office, he will:
lose because the president has the power to appoint and remove officers of executive federal agencies.
If a trial court judge is deciding an issue that has never come before the court (a case of first impression), they:
may create new precedent.
Ethics is the consideration of how one should act, based on which of the following concepts?
morality, or principles of right and wrong
The argument that a law should not be followed because it violates the inherent rights of human beings follows which theory of jurisprudence?
natural law
Maverick Manufacturing creates dress slacks for men and women. Maverick's decides to expand its business by opening a new manufacturing plant in China to create slacks that will be sold in China as well as in the United States. Maverick will hire both American and Chinese employees to work in the plant. Maverick's upper management thinks that the same laws that protect U.S. employees should apply to the Chinese workers as well. Maverick's upper management subscribes to the:
natural law school of legal thought.
When a party wishes to excuse a potential juror without giving a reason, the party may exercise a:
peremptory challenge.
What is a document called that is filed with the court to state the position of the plaintiff or the defendant in a lawsuit and ask for relief from the court?
pleading
Which theory of jurisprudence holds that the written law of a government is the highest law?
positivism
What is the lowest level of review by a court to determine whether a government action unconstitutionally infringes on protected rights?
rational basis review
What are the three levels of scrutiny used by courts to determine the constitutionality of a government action? Choose 3 answers.
rational basis review strict scrutiny intermediate scrutiny
Civil law:
regulates the rights and duties between parties.
Business law is a vast body of state and federal law governing business activities that includes statutes (codes), common law, court cases, and: Choose 2 answers.
regulations. constitutions.
Karishma and Stephen, co-owners of Roundtree Corporation, are discussing a new benefits package they are considering for their employees. The proposed plan is more expensive for the company than the current plan but will offer better benefits to the employees. Stephen wants to decide based solely on the effect on the owners of the corporation, while Karishma's position is that the employees should be taken into consideration as well. Stephen is more concerned with the _____________ theory of management, and Karishma is more concerned with the __________ theory of management.
shareholder; stakeholder
What type of speech does not receive First Amendment protections? Choose 3 answers.
speech that incites lawlessness threats to the president of the United States obscenity
Joan's lawyer, Albert, feels pretty good about the chances of winning Joan's case. He has found a case directly on point, which means it has the same issue and very similar facts. If the court follows the decision in the case Albert found, then Joan will win her case. Albert argues Joan's case to the trial court, and the trial court decides for Joan. The fact that the trial court decided the case in Joan's favor is an example of:
stare decisis.
Mary and Hanna, who are Tennessee residents, were traveling through Mississippi when they were involved in an automobile accident with Franco, who is a resident of Mississippi. Franco sues Mary, who was driving the car, in federal court in Mississippi and asks for $100,000 to reimburse him for his medical bills and lost wages. In deciding the case, what law will the federal district judge apply?
state law
Elton is a state representative for the North Dakota legislature. Recently, Elton and his colleagues in the legislature proposed a law that would increase the penalty drivers would have to pay if they pass a stopped school bus. The type of law that Elton and his colleagues will enact is known as:
statutory law.
After all pleadings are filed and discovery is completed, a party may ask the judge to rule in their favor on the basis that there are no genuinely disputed facts and the judge need only rule on the law. The motion asks the court for a:
summary judgment.
Which of the following are methods of preventing unethical behavior? Choose 2 answers.
terminating an employee for unethical behavior establishing a company code of ethics
Which of the following is the provision of the U.S. Constitution that establishes federal law precedence over state law?
the Supremacy Clause
Rhea, a 45-year-old supervisor in a women's retail clothing store, recently learned that a younger co-worker was promoted to a position she had applied for. Rhea has more experience and more time with the company and has always gotten excellent scores in her annual reviews. Rhea files an action with the Equal Employment Opportunity Commission (EEOC) for age discrimination. The Administrative Law Judge (ALJ) issues an order in favor of Rhea. This decision of the ALJ is:
the final order in the case unless the store appeals.
When making a decision using the stakeholder theory of management, a business professional would place more weight on which of the following? Choose 2 answers.
the harm to customers from using the company's product over profits the impact of its decisions on employees over the profitability of the business
CHAPTER 1 As you begin studying business law, you become overwhelmed by the sheer volume of laws that can affect business. You dive in and begin the process of understanding where these laws come from; the first step in understanding how these laws apply to each other and how they apply to your business. You're looking at statutes that set out the penalties for forgery and learn that each state is free to make its own criminal laws that apply just to that state. Which branch of government do you think creates statutes?
the legislature
Which of the following represent two of the potential financial costs of reporting unethical behavior? Choose 2 answer choices.
the loss of top performing employees penalties, fines, and lawsuits against the company
Historically, the common law developed from:
the unification of local customs and laws in feudal England.
Congress has the right to pass laws, as long as:
they do not conflict with the United States Constitution.
The federal and most state judicial branches have at least these three levels in the court system:
trial court, intermediate appellate court, and highest appellate court.
A company exhibits responsible corporate citizenship when it:
uses its wealth and influence to benefit society as a whole.
Under which theory of ethics would a decision be ethical if it provides the greatest benefit for the largest number of individuals?
utilitarianism
What is the process of interviewing prospective jurors and either approving of or challenging a person's impartiality toward service on a particular jury?
voir dire
Harold is the owner of Fairway Lawn Service, which provides lawn-care services to residential and commercial customers. Harold regularly sprays his customers' lawns with a pesticide that contains glyphosate. The Environmental Protection Agency (EPA) issues a citation to Harold for commercial use of the pesticide. The EPA says glyphosate can only be used in residential applications. Harold knows that this has not been the law in the past, so he searches the EPA website for information about glyphosate. Harold finds nothing that indicates glyphosate cannot be used in commercial applications, so Harold demands a hearing to dispute the citation he has been issued. Harold will probably:
win because the EPA did not give notice of the rule change regarding glyphosate.
The idea that each person has intrinsic biases that impact their decisions is a component of which school of thought?
Legal Realist School
Who creates the substantive or statutory law applied by the International Court of Justice in cases before it?
No one
Under the principle of rights, the term "rights" refers to:
the fundamental rights of human beings.
Juan owns a manufacturing company that wants to expand its line of plastics. To expand and still make a profit, pollution into the local river will be significantly increased. In evaluating his decision, Juan tries to determine whether expanding the company's line of plastics would produce the greatest amount of good for the greatest number of people. In doing so, Juan is following the ethical principle known as:
utilitarianism.