Quiz 1 (Ch 1 & Ch 2) Business Law

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Destiny and Enzo engage in a business transaction. When a dispute arises, Destiny initiates a lawsuit against Enzo by filing a complaint. If Enzo files a motion to dismiss, he is asserting that​ a. ​Destiny did not state a claim for which relief can be granted. b. ​Enzo suffered greater harm than Destiny. c. ​Destiny's statement of the law is not true. d. ​Destiny's statement of the facts is not true.

a. ​Destiny did not state a claim for which relief can be granted.

Ronnie files a suit in a state court against Sheri. The case proceeds to trial, after which the court renders a verdict. If either party appeals, the clerk of the trial court will send to the clerk of the appellate court within a prescribed period of time​ a. ​a copy of the record on appeal. b. ​a statement of the grounds for reversal. c. ​an explanation for the verdict. d. ​a brief including the arguments of both parties.

a. ​a copy of the record on appeal.

Mary files a suit against Nichelle in a state court over an employment contract. The case proceeds to trial, after which the court renders a verdict. The case is appealed to an appellate court. After the state's highest court's review of Mary v. Nichelle, a party can appeal the decision to the United States Supreme Court if​ a. ​a federal question is involved. b. ​a question of state law remains unresolved. c. ​the state trial and appellate court rulings are different. d. ​the party is unsatisfied with the result.

a. ​a federal question is involved.

Sofia files a suit against Turista Airlines, Inc. Turista responds that it appears from the pleadings that the parties do not dispute the facts and the only question is how the law applies to those facts. Turista supports this response with witnesses' sworn statements. This is​ a. ​a motion for summary judgment. b. ​a motion for judgment on the pleadings. c. ​a counterclaim. d. ​a motion to dismiss.

a. ​a motion for summary judgment.

The branch of law dealing with the enforcement of private rights and duties between parties is​ a. ​civil law. b. ​federal law. c. ​administrative law. d. ​constitutional law.

a. ​civil law.

A Metro City ordinance imposes a jail term, without a trial, on all vendors who operate in certain areas. A court would likely review this ordinance under the principles of​ a. ​due process. b. ​free speech c. ​equal protection. d. ​free exercise.

a. ​due process.

Taco Hot Dogs, Inc., regularly advertises its products. Under the First Amendment, in comparison with noncommercial speech, the protection given these ads is​ a. ​less extensive. b. ​non-existent. c. ​equally extensive. d. ​more extensive.

a. ​less extensive.

Liz and Moss disagree over the amount due under their con-tract. To avoid involving any third party in the resolution of their dispute, Liz and Moss might prefer to use the alternative dispute resolution method of​ a. ​negotiation. b. ​arbitration. c. ​mediation. d. ​litigation.

a. ​negotiation.

Keralyn creates a Web site to post threatening messages about celebrities. The First Amendment protects such speech​ a. ​none of the time. b. ​only if it is symbolic. c. ​all of the time. d. ​only if it is noncommercial.

a. ​none of the time.

Charles is a federal judge whose judicial decisions are part of case law, which does not include interpretations of​ a. ​parties' subjective motives for engaging in litigation. b. ​constitutional provisions. c. ​statutes enacted by legislatures. d. ​regulations created by administrative agencies.

a. ​parties' subjective motives for engaging in litigation.

Sustainable Crops Corporation regularly expresses opinions on political issues, including whether to ban the use of genetically modified organisms (GMOs). Under the First Amendment, corporate political speech is​ a. ​protected. b. ​required. c. ​discouraged. d. ​forbidden.

a. ​protected.

The Consumer Product Safety Commission is a government agency that issues rules, orders, and decisions. The Colorado state legislature enacts statutes. The Washington County Board and the Silver City Council enact ordinances. Administrative law includes​ a. ​the rules, orders, and decisions of the Consumer Product Safety Commission. b. ​statutes enacted by the Colorado state legislature. c. ​all laws that affect a business's operation. d. ​ordinances enacted by the Washington County Board and the Silver City Council.

a. ​the rules, orders, and decisions of the Consumer Product Safety Commission.

The Constitution sets forth specific powers that can be exercised by the national government and provides that the national government has the implied power to undertake actions necessary to carry its expressly designated powers. All other powers are expressly reserved to​ a. ​the states. b. ​the people. c. ​none of the choices. d. ​the national government.

a. ​the states.

David, an Alabama resident, files a suit in an Alabama court against QuickAds, an internet company based in Georgia that provides advertising services. QuickAds only contact with persons in Alabama has been through QuickAds passive advertising. The Alabama court is a. likely to refer the case to a higher district court. b. likely to have jurisdiction if the claim David brings is based on QuickAds advertising scheme in Alabama. c. not likely to have jurisdiction over the case because QuickAds is based in Georgia. d. likely to refer the case to an appellate court.

b. likely to have jurisdiction if the claim David brings is based on QuickAds advertising scheme in Alabama.

Isabel and Josh engage in a business transaction that leads to a dispute. Isabel initiates a lawsuit against Josh by filing a complaint. The sheriff serves Josh with a summons. If Josh chooses to ignore it,​ a. ​Josh will have a judgment entered in his favor. b. ​Isabel will have a judgment entered in her favor. c. ​Josh must be served with a second summons. d. ​Isabel must file an amended complaint.

b. ​Isabel will have a judgment entered in her favor.

Olivia, a citizen of Nebraska, wants to file a suit against Micah, a citizen of Kansas. Their diversity of citizenship may be a basis for​ a. ​no court to exercise jurisdiction. b. ​a federal court to exercise original jurisdiction. c. a state court to exercise appellate jurisdiction.​ d. ​the United States Supreme Court to refuse jurisdiction.

b. ​a federal court to exercise original jurisdiction.

In a suit by the National Forest Preservation Organization (NFPO) against Old Growth Logging, Inc., NFPO serves a written request for Old Growth to admit the truth of matters relating to the trial. Old Growth's admission in response is the equivalent of​ a. ​information to which Old Growth has a right of privacy. b. ​an admission in court. c. ​a statement to the media. d. ​irrelevant evidence

b. ​an admission in court.

James and Kay enter into a contract for the sale of a bicycle, but Kay later refuses to deliver the goods. James asks a court to order Kay to perform as promised. Ordering a party to perform what was promised is​ a. ​beyond the court's authority. b. ​an equitable remedy. c. ​an unenforceable demand. d. ​an action.

b. ​an equitable remedy.

Carol files a suit against Duffy in a state trial court and loses. Carol​ a. ​can insist that the United States Supreme Court hear her case. b. ​can plead her case before an appellate court. c. ​can plead her case before a small claims court. d. ​cannot take her case any higher in the court system.

b. ​can plead her case before an appellate court.

As a judge, Baxter applies common law rules. These rules develop from​ a. ​statutes enacted by Congress and the state legislatures. b. ​decisions of the courts in legal disputes. c. ​uniform laws drafted by legal scholars. d. ​regulations issued by administrative agencies.

b. ​decisions of the courts in legal disputes.

Lorena files a suit against Milton. Before going to trial, the parties, with their attorneys, meet to try to resolve their dispute. A third party suggests or proposes a resolution, which the parties may or may not decide to adopt. This is​ a. ​not a legitimate form of dispute resolution. b. ​mediation. c. ​negotiation. d. ​arbitration.

b. ​mediation.

To resolve a dispute in nonbinding arbitration, Alyson in Baltimore and Chuck in Denver utilize eResolve, an online dispute resolution (ODR) service. This limits these parties' recourse to the courts​ a. ​with respect to this dispute only. b. ​not at all. c. ​with respect to any dispute arising between the parties. d. ​until the ODR service has issued a decision.

b. ​not at all.

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​ a. ​due process. b. ​privacy. c. ​engage in interstate commerce. d. ​equal protection.

b. ​privacy.

Marie claims that a Nebraska state statute infringes on her "procedural due process" rights. This claim focuses on​ a. ​the similarity of the treatment of similarly situated individuals. b. ​procedures used in making decisions to take life, liberty, or property. c. ​the content of the statute. d. ​the steps to be taken to protect Marie's privacy.

b. ​procedures used in making decisions to take life, liberty, or property.

Suki files a suit against Travis. If this suit is like most cases, it will be​ a. ​dismissed during a trial. b. ​settled before a trial. c. ​transferred to a higher court. d. ​resolved only after a trial.

b. ​settled before a trial.

Bradley, the president of Commerce & Trade, Inc., claims that certain actions by the federal government and the state of Delaware infringe on rights guaranteed by the Bill of Rights. All of these rights limit​ a. ​none of the choices. b. ​the federal government. c. ​the states. d. ​private citizens and corporations.

b. ​the federal government.

In an action against Gina, Harry obtains a remedy. This is​ a. ​a statute enacted by a state legislature or Congress. b. ​the means to enforce a right or to compensate for the violation of a right. c. ​a principle of the law derived from earlier court cases. d. ​an administrative agency's enforcement of its rule.

b. ​the means to enforce a right or to compensate for the violation of a right.

Gabrielle files a suit against Hard n' Fast Adhesives, Inc. stating several claims against them. Hard n' Fast responds that even if Gabrielle's statement of the facts is true, Hard n' Fast is still not liable. This is a a. counterclaim. b. motion to dismiss. c. motion for judgment on the pleadings. d. motion for summary judgment.

c. motion for judgment on the pleadings.

Nationwide Trucking wants to initiate a suit against Open Pit Mining Corporation by filing a complaint. The complaint should include a statement alleging the facts establishing​ a. ​a motion to dismiss. b. ​an explanation to refute any defense Open Pit might assert. c. ​Nationwide's basis for relief. d. ​a motion for summary judgment.

c. ​Nationwide's basis for relief.

The case of Max v. National Credit Co. is heard in a trial court. The case of O! Boy! Ice Cream Co. v. Pecan Corp. is heard in an appellate court. The difference between a trial and an appellate court is whether​ a. ​the court is appealing. b. the parties question how the law applies to their dispute. c. ​a trial is being held. d. ​the subject matter of the case involves complex facts.

c. ​a trial is being held.

In Benny v. City Car Dealership, a state supreme court held that a minor could cancel a contract for the sale of a car. Now a trial court in the same state is deciding Dora v. Even Steven Auto Deals, Inc., a case with similar facts. Under the doctrine of stare decisis, the trial court is likely to​ a. ​require the minor to fulfill the contract. b. ​disregard the Benny case. c. ​allow the minor to cancel the contract. d. ​order the minor to cancel the contract.

c. ​allow the minor to cancel the contract.

The United Energy Resources Association would like a certain law enacted, administered, interpreted, and enforced in the best interest of its members, which include fossil fuel companies. Under the Constitution, Congress​ a. ​administers the laws. b. ​interprets the laws. c. ​enacts the laws. d. ​enforces the laws.

c. ​enacts the laws.

Bay Town enacts an ordinance to allow only a few recreational boating outfits to operate in certain areas of its harbor, for the purpose of reducing traffic. A court would likely review this ordinance under the principles of​ a. ​free speech b. ​due process. c. ​equal protection. d. ​free exercise.

c. ​equal protection.

Statutes passed by a state legislature apply within the state's boundaries. Laws enacted by the U.S. Congress pertain to the United States. Treaties between the United States and other nations can affect the signatories' relations. National law is​ a. ​federal law, as opposed to state law. b. ​law that has an extraterritorial effect. c. ​law that pertains to a particular nation. d. ​all law that is applied within a nation's courts, including international law and the law of another country.

c. ​law that pertains to a particular nation.

The commerce clause's express grant of exclusive authority to regulate commerce that substantially affects trade and commerce among states is referred to as the​ a. ​dormant aspect. b. ​negative aspect. c. ​positive aspect. d. ​active aspect.

c. ​positive aspect.

First Community Credit Union and General Hydraulics. Inc., have their dispute resolved in arbitration. Before determining the award, the arbitrator meets with First Community's representative to discuss the dispute without General Hydraulics' representative being present. If this meeting substantially prejudices General Hydraulics' rights, a court will most likely​ a. ​review the merits of the dispute. b. ​compel arbitration. c. ​set aside any award. d. ​review the sufficiency of the evidence.

c. ​set aside any award.

Service Employees International Union and Timberline Products, Inc., have their dispute resolved in arbitration. The arbitrator arbitrates issues that the parties did not agree to submit to arbitration. This is a ground for a court to​ a. ​none of the choices. b. ​review the merits of the dispute. c. ​set aside the award. d. ​review the sufficiency of the evidence.

c. ​set aside the award.

Mediocrité, Inc., makes and sells goods that are substandard. Nancy, who has never bought or used a Mediocrité item, files a suit against the firm, alleging that its products are defective. The company's best ground for dismissal of the suit is that Nancy does not have​ a. ​venue. b. ​jurisdiction. c. ​standing. d. ​certiorari.

c. ​standing.

Orin claims that a Pennsylvania state statute infringes on his "substantive due process" rights. This claim focuses on​ a. ​procedures used to make decisions to take life, liberty, or property. b. ​the steps to be taken to protect Orin's privacy. c. ​the content of the statute. d. ​the similarity of the treatment of similarly situated individuals.

c. ​the content of the statute.

Lyndon, a citizen of Maryland, obtains a federal license to operate a commercial fishing boat in a certain area off the Maryland coast. The Maryland state legislature enacts a law that bans all commercial fishing in that area. The state law most likely violates​ a. ​the due process clause. b. ​no provision in the U.S. Constitution. c. ​the supremacy clause. d. ​the commerce clause.

c. ​the supremacy clause.

Lake City enacts an ordinance that bans the distribution of all printed materials on city streets. Mackensie opposes the city's latest "revenue-enhancing" measure and wants to protest by distributing handbills. In her suit against Lake City, a court would likely hold the ban on printed materials to be​ a. ​not subject to the U.S. Constitution. b. ​constitutional under the First Amendment. c. ​unconstitutional under the First Amendment. d. ​unconstitutional under the commerce clause.

c. ​unconstitutional under the First Amendment.

SPF Sunscreen Corporation and Tanner agree to resolve their dispute through arbitration. The arbitrator's decision is called​ a. ​a verdict. b. ​a conclusion of law. c. ​a finding of fact. d. ​an award.

d. ​an award.

Lazlo's Bikes, Inc., a firm in Minnesota, advertises on the Web. A court in North Dakota would be most likely to exercise jurisdiction over the firm if it​ a. ​only engaged in passive advertising on the Web. b. ​suddenly removed its ad from the Internet. c. ​interacted with any North Dakota resident through its Web site. d. ​did substantial business with North Dakota residents over the Internet.

d. ​did substantial business with North Dakota residents over the Internet.

Kari and Lillian, who are citizens of Mississippi, are involved in a case related to the adoption of their child. Over this case, Mississippi state courts have​ a. ​concurrent jurisdiction with other state courts. b. ​concurrent jurisdiction with federal courts. c. ​no jurisdiction. d. ​exclusive jurisdiction.

d. ​exclusive jurisdiction.

Criminal acts are prohibited by​ a. ​state statues only. b. ​federal statutes only. c. ​local statutes only. d. ​local, state, and federal statutes.

d. ​local, state, and federal statutes.

A decision by the federal Environmental Protection Agency (EPA) on the amount of carbon that can be emitted from a car's exhaust system conflicts with a California state law. In this situation, under the supremacy clause,​ a. ​both the decision and the law apply concurrently. b. ​California's law takes precedence. c. ​both the decision and the law are invalid. d. ​the EPA's decision takes precedence.

d. ​the EPA's decision takes precedence.

Much of American law is based on​ a. ​Ancient Chinese law. b. ​the Spanish legal system. c. ​the civil law of the Greeks. d. ​the English legal system.

d. ​the English legal system.

Taylor, a citizen of Utah, files a suit in a Utah state court against Veritas Sales Corporation, a Washington state company that does business in Utah. The court has original jurisdiction, which means that​ a. ​the court has a unique method of deciding whether to hear a case. b. ​the subject matter of the suit is interesting and new. c. ​the court has unusual procedural rules. d. ​the case is being heard for the first time.

d. ​the case is being heard for the first time.

A Rhode Island state court can exercise jurisdiction over Standard Business Corporation, an out-of-state defendant, if Standard has minimum contacts with​ a. ​any lawyer or law firm. b. ​any of the choices. c. ​the United States. d. ​the state.

d. ​the state.


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