Legal Environment Of Business Exam 1 Review

_____ covers the legal principles that apply to government agencies, bureaus, boards, or commissions. A. Administrative law B. Constitutional law C. Criminal law D. Contract law

A. Administrative Law

According to _____, judges in current cases follow whenever possible the legal reasoning set forth in prior judicial opinions or cases in the same jurisdiction. A.stare decisis B.writ of certiorari C.constitutional relativism D. legal realism

A.stare decisis

Carl lives in Dunlap, TN. James, who is from GA, drives into Carl's house causing $180,000 in property damage. To recover his losses, Carl wants to sue James. In this scenario, Carl can sue James in either TN or GA. 1) If he files in TN, Carl is most likely to file the initial lawsuit in __. 2) If he files in GA, Carl is most likely to file the initial lawsuit in __. A. traffic court B. a state appellate court C. a federal district court D. a state trial court1)

1) D - state trial court 2) C - federal district court

John has written a book, My Life on the Sea, and was talking to some interested parties from Hollywood about making a movie based on it. However, he turned down an offer due to differences of opinion. A year later, My Life on the Sea was made into a movie, but it did not acknowledge the author. This scenario best reflects a violation of _____. A. Property law B. Administrative law C. Constitutional law D.Criminal law

A - Property Law

Most international contracts contain choice of forum & law provisions to A. eliminate the uncertainty in determining which nation's court may hear a case if there is a contract dispute. B. avoid prosecution by the World Court. C. eliminate the possibility of being inspected by the United Nations Commission on International Trade Law. D. reduce the possibility of a contract breach due to international trade disputes.

A - eliminate uncertainty of which court has jrd & which law applied

Which of the following statements is true of ethical systems? A.They are institutions of the state & are enforceable by law B.They believe that the motivation to observe moral values usually comes from within an individual. C.They set a bare minimum standard acceptable to a society, & violations of the standards are punishable under the legal system. D.They are based on just meeting minimum legal requirements.

B - Motivation to observe moral values comes from within

Kate has entered into a binding agreement to sell a house to Michael. When Michael shows up to complete the deal as per the agreement, Kate refuses to go through with the transaction. Which of the following best categorizes Kate and Michael's issue in the context of classifications of laws? A.This is a public law issue regarding substantive law. B. This is a private law issue regarding contract law. C. This is a public law issue regarding property law. D. This is a private law issue regarding criminal law. E. This is a public law issue regarding tort law.

B - Private law issue regarding contract law

In the context of alternative dispute resolution, mediators A. impose a binding solution on all disputing parties. B.help the parties find a binding solution but do not impose one on them. C. must meet the licensing requirements for their decisions to be used in court if a dispute proceeds to litigation. D. act as a necessary precursor to arbitration.

B - help the parties find solution but do not impose one on them

Unlike a mediator, an arbitrator, __________. A. is not a neutral party B. imposes a solution on the disputing parties C. imposes a solution only on one of the disputing parties D. cannot be chosen by the disputing parties

B - imposes a solution on the parties (usually binding)

Coach Kleats coaches the softball team at Phoenix Junior High. He loses his temper with one of the substitutes following a game and slams the child against the lockers. The child is badly bruised and bleeding from the nose. In this scenario, the coach can be sued for committing a(n) _____. A. tort of negligence B. intentional tort C. strict liability tort D. statutory tort

B - intentional Tort

The purpose of compensatory damages is to A. punish a defendant. B. make a plaintiff whole again, at least financially. C. punish a plaintiff for contributory negligence. D. make an example out of a defendant.

B - make the P whole

Dan is a supporter of the formalist view. Which of the following is most likely to be his belief about lying? A.He is likely to support a lie that is told for personal gain. B.He is likely to condemn all forms of lying. C.He is likely to support a lie that is told for the common good. D.He is likely to disapprove of lying only in instances that hurt people.

B He is likely to condemn all forms of lying.

The time allowed for one party to sue another and the rules of law governing the process of a lawsuit are examples of A.international laws. B.procedural laws. C.substantive laws. D.property laws.

B.procedural laws.

Baby Fashionista manufactures baby clothes, which Kiddo Distribution buys and sells to Adorable Babies, which sells them to consumers. Little Elmer is injured while wearing pajamas that his mom bought from Adorable Babies. In a product liability suit based on strict liability, Little Elmer (or his mother) may recover from A. Baby Fashionista only. B.Adorable Babies only. C.Baby Fashionista, Kiddo Distribution, or Adorable Babies D.none of the choices.

C - all those in the line of distribution

Tony has admired Ann for months, but he has never talked to her. One day, Tony walks up to Ann and gives her a hug. Ann is angry and decides to sue Tony. In this case, she would likely sue Tony for the tort of ______. A.duress B. conversion C. battery D. negligence

C - battery

The security guard at MV-Store suspects Roberta of shoplifting and detains her. His suspicion is based solely on the fact that she is dressed differently than the store's typical customer. The security guard finds nothing illegal in Roberta's belongings. Roberta is furious and decides to sue MV-Store. In this case, Roberta is most likely to file a lawsuit against MV-Store for A. malicious prosecution. B. false arrest. C. false imprisonment. D. trespass.

C - false imprisonment

Ron causes an accident in Chattanooga while delivering a pizza for WeBeOn Time Pizza Company. Ron & WeBeOn Time are liable to A. all those who were injured. B. only those who were uninsured. C. only those whose injuries could have been reasonably foreseen. D.only those whose vehicles were closest to Ron's van.

C - only those whose injuries R foreseen

The __________, proposed by Kant, says that a person has a moral duty to act in the way he or she believes everyone should act. A.Social Contract theory B.Deontological Imperative C.Categorical Imperative D.Consequentialist theory

C Categorical Imperative

If Frank challenges a government action as being unconstitutional and the court requires the government to prove that its action advanced an important government objective and that the action is substantially related to the government's objective, the court is reviewing the action A.Under a Rational Basis standard B.Under the Substantial Necessity standard C.Based on an Intermediate Level review D.According to a Strict Scrutiny standard

C. Based on an Intermediate Level review

The clause in the U.S. Constitution giving Congress its broadest power including the authority to regulate interstate highways, railroad cars carrying corn from Iowa to Michigan, and gas being transported via barge from Louisiana to Ohio is the A.Taxing & Spending Clause B.Necessary & Proper Clause C. Commerce Clause D.Transportation Clause

C. Commerce Clause

Which of the following statements is true of the effect of the group on ethics in a corporate organization? A.Individuals rarely do unethical things when they are part of a group. B.Coupled with an overemphasis on profit, the group effect reduces the difficulty of achieving an ethical business corporation. C. Individuals in groups may feel a diminished sense of responsibility for actions taken, which invites ethical compromise. D. Individuals feel more responsible for what happens in a group than in their individual lives.

C. Individuals in groups may feel a diminished sense of responsibility for actions taken, which invites ethical compromise.

Which of the following statements is true of the role of judges in U.S. courts? A.They determine the facts from conflicting evidence in a jury trial. B.They present evidence to a jury. C. They apply the law to the facts of a case. D. They campaign for reelection.

C. They apply the law to the facts of a case.

Stakeholder theory suggests that ethical corporate behavior A.strongly relies on government interaction. B.focuses primarily on whether corporate actions take the interests of all employees into account before making significant business decisions. C.depends on managers who recognize and take into account the various stakeholders whose interests a corporation affects. D.takes unacceptable risks only when the risk has a reasonable likelihood of enriching the stakeholders' net worth substantially.

C.depends on managers who recognize and take into account the various stakeholders whose interests a corporation affects.

Which of the following statements is true of the use of alternative dispute resolution (ADR) techniques? A. ADR techniques are ineffective once the pretrial process has begun. B. Disputing parties must begin a lawsuit to use any form of ADR. C. Disputing parties cannot specify the preferred ADR technique to be used in the parties' contract. D. Disputing parties can agree to use an ADR technique after a dispute arises. E. Litigation precludes the use of ADR techniques for dispute resolution.

D - Parties CAN agree to use ADR after a dispute arises

Which of the following statements is true of voluntary arbitration? A. The court will conduct a de novo hearing when reviewing the arbitration reward. B. The procedure is associated with a court's supervision, and discovery is usually done. C. The quality of the outcome is considerably affected when compared to mandatory arbitration. D. The procedure is not tied to a court and is not bound by rules of evidence.

D - Procedure is not tied to a court & is not bound by rules of evidence

James and Carl both live in Dunlap, TN. James drives into Carl's house causing $180,000 in property damage. To recover his losses, Carl wants to sue James. In this scenario, Carl is most likely to file the initial lawsuit in _____. A. traffic court B. a state appellate court C. a federal district court D. a state trial court

D - State trial court

The constitutional protection that an individual has not to be compelled to be a witness against himself or herself in a criminal matter is found in the A.1st Amendment B.2nd Amendment C.4th Amendment D.5th Amendment

D 5th Amendment

A property-based legal system A.is unimportant in Western legal systems. B. is contrary to the philosophy of natural law. C. does not allow for the transfer of private resources. D. allows people to exclude others from interfering with what their efforts produce.

D. allows people to exclude others from interfering with what their efforts produce.

Which of the following statements is true of the role of jurors in U.S. courts? A. They determine the rules of law relevant to a case. B. They present the evidence and arguments to the judges. C. They apply the law to the facts of a case. D. They apply constitutional limitations and guarantees. E. They determine the facts from conflicting evidence

E. They determine the facts from conflicting evidence