Bus Law
In the Heart of Atlanta v. U.S. case, which of the following best describes the remedy in the case?
Equitable remedy- Permanent Injunction
Rodrick, the chief executive officer of Social post Host Inc., claims that certain actions by the state of Texas infringe on rights guaranteed by the Bill of Rights. Most of these guarantees have been held to limit
Federal and state actions
In Research & Development Company's suit against Structural Engineers, Inc, Research & Development wants to introduce evidence that it claims is relevant. Relevant evidence is evidence that
establishes the degree of probability of a fact or action, tends to disprove a fact in question, tends to prove a fact in question
Location! Realty LLC, is a LLC. Like other LLCs, for federal jurisdictional purposes, Location! Realty is most likely a citizen of
every state in which its members are citizens
Global Trade Corporation is a public company that is poised to issue securities that do not qualify for an exemption from registration. This means that Global Trade must
file a registration statement with the SEC
Juan is a judge. How Juan and the judges in other courts interpret a particular statute determines
how that statute will be applied
In the Heart of Atlanta Motel Inc. v U.S. case, what was the Court's final decision?
Affirm
Brewster, the chief executive officer of Cog & Gear Lubricants Corporation wants to ensure that Cog & Gear's activities are legal and ethical. The best course for Brewster and Cog & Gear is to act
In good faith
Martin files a suit against Nichelle in a state court over payment due on a short-term employment contract. The case proceeds to trail, after which the court renders a verdict. The case is appealed to an appellate court. 1. Refer to Fact Pattern 3-B2. After its review of Martin vs. Nichelle, the appellate court has
Affirmed the case
To prepare for trail between SmartPhones Inc., and TechApps Company, TechApps' attorney places SmartPhones' chief executives officer (CEO) under oath. A court official makes a record of the attorney's questions and the CEO's answers. This is
A deposition
Lowell runs Medical Debt Collection Agency. He collects debts by misrepresenting the facts and pretending to be licensed to perform carious occupations. Lowell's conduct most likely warrants
An injunction plus other sanctions
Dave and Ellen enter into a contract via e-mail. When a dispute arises over the performance of the deal, Dave files a suit against Ellen. The emerging body of law that governs transactions conducted via the Internet is referred to by the term
Cyberlaw
The Alternative Energy Association would like a certain law enacted, administered, interpreted, and enforced in the best interest of its members, which include solar power companies. Under the Constitution, Congress...
Enacts the laws
Fresh Fruit Company has assets of less that $10 million and fewer than fifty shareholders. Gourmand Pastries, Inc., has assets of more than $50 million and more than five hundred shareholders. The Securities Exchange Act of 1934 applies to
Gourmand Pastries only
As a judge in a federal court, Christine can decide, among other things, whether the laws of actions of the executive and legislative branches are constitutional. The process for making this determination is known as
Judicial review
Taco Hot Dogs, Inc., regulary advertises its products. Under the First Amendment, in comparison with noncommercial sppech, the protection given these ads is
Less extensive
The Montana Supreme Court rules against Natural Grocery Mart in a case against One Stop 2 Shop Stores Inc. Natural Grocery Store files an appeal with the Unites States Supreme Court. The court does not hear the case. This
Means that the Montana court's decision is the law Montana
The least expensive method of resolving a dispute between Ronald and Sharon may be
Negotiation because no third parties are needed
Keralyn creates a Web site to post threatening messages about celebrities. The First Amendment protects such speech
None of the time
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
Privacy
In the Clay v. U.S. case, what was the Court's decision?
Reversed
In studying the business law, students also review ethics in a business context. Ethics includes the study of what constitutes
Right or wrong behavior
OnSpec, Inc., and its officers, directors, and shareholders, buy and sell securities. Section 16(b) of the Securities Exchange Act of 1934 covers purchases and sales of securities involving
Short-swing profits
In the Clay v. U.S. case, the Court's use of Sicurella v. U.S. is an example of
Stare Decisis
In the Clay v. U.S. case, the Court's use of "62 Stat. 622, as amended, 50 U.S.C.App. 462(a). (1964 ed., Supp. V)" is an example of
Statutory Law
Coffee Klatch Party Group, a political organization, files a claim to challenge a Delaware statue that limits the liberty of all persons to broadcast "annoying" radio commercials. This claim is most likely based on the right to
Substantive due process
Mariah creates a t-shirt design that expresses support for Nathan, a presidential candidate, and distributes t-shirts imprinted with the design to her friends. The t-shirts are an example of
Symbolic speech
In the Clay v. U.S. case, which constitutional provision formed the basis of the Court's decision?
The 1st Amendment
In the Heart of Atlanta Motel Inc. v. U.S case, which constitutional provision formed the basis of the Court's decision?
The Commerce Clause
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,
The EPA's decision takes precendence
Much of American law is based on
The English legal system
In the Heart of Atlanta Motel Inc. v. U.S. case, which Court rendered this decision?
The US Supreme Court
Lewis wants to file a suit against Mikayla. Before any court can hear the case
The court must have jurisdiction
In an effort to reduce traffic, Bay City enacts an ordinance that allows only a few specific street vendors to operate in certain areas. A court would likely review this ordinance under the principles of
The equal protection clause
In making business decisions, Ridgeline Utility Service Company and other corporations should strive to be "good citizens" by evaluating
The legal implications of each decision, the public relations impact, the safety risks for consumers and employees
The Nebraska Supreme Court issues an opinion that can be found at 285 Neb. 88, 825 N. W.2d 429. "285" is
The number of volume in the official reports of the court's decisions.
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. Under the Tenth Amendment, all other powers are expressly reserved to
The states
In the Heart of Atlanta Motel Inc., v. U.S case, what was the primary issue?
Whether Title II of the Civil Rights Act of 1964 is lawful to prohibit racial discrimination in places of public accommodation
In the Clay v. U.S. case, which of the following is the issue?
Whether the Selective Service wrongly denied Clay from being classified as a conscientious objector
Dreem Land Corporation and EZ Investments Company transfer their property to Financial Managers Inc., which manages the property and distributes the profits to Dreem and EZ. This form of a business organization is
a business trust
Miracle Mobile Devices Inc., is a private for-profit corporation that (1) was formed for the purpose of manufacturing and distributing a newly patented tablet, (2) is owned by five shareholders, (3) is no subject to double taxation, and (4) has made no public offering of its shares. Miracle is
a close corporation
Deepwater Dredging & Excavation holds itself out to others as being a corporation but makes no attempt to incorporate. Estuary Marina signs a contract with Deepwater that is not performed. Estuary Marina files a suit against the firm. The court will likely hold that Deepwater is
a corporation by estoppel (prevents someone from going back on their word)
Equestrian Stables Corporation's articles list an incorrect address for its incorporator. Under this circumstance, Equestrian Stables is most likely
a de jure corporation
As a part of a stock offering for Designer Studio Corporation, the firm's accountant Evelyn intentionally misrepresents material facts in the prospectus. Flores buys the stock unaware of the misrepresentation and suffers a loss. Evelyn may be subject to
a fine, imprisonment, and damages
Dollars & Sense, Inc., is incorporated in the state of New Jersey and is doing business in the state of New York. In New York, Dollars & Sense is properly referred to as
a foreign corporation
Transworld Import Company and USA Export Inc., form a business organization to engage in importing and exporting. Its property is held in the names of the member and its shareholder have personal liability. This organization is
a joint stock company
Lauren, Marcella, and Norell form a syndicate to buy a professional soccer franchise. This syndicate could be set up as
a joint venture or a LLC
Custom Auto Body & Detailing, LLC, is an LLC. Unless indicated otherwise on the Custom Auto's federal tax form, the firm will be taxed as
a partnership
Rhys owns Solar Fuel Corporation. Rhys uses Solar Fuel's funds to pay his personal expenses, creates Thermal Power Corporation to engage in the same business as Solar Fuel, transfers Solar Fuel's assets to Thermal power, and petitions Solar Fuel into bankruptcy. This most likely warrants
a pierce of the corporate veil
Orel incorporates his business as Posts & Wire Corporation in Texas. He and his group of shareholders intend to make a profit from their sales of fencing materials. Posts & Wire is
a private corporation
The abbreviation "P.A." in the name Conrad & Drake, Accountants, P.A" means that this organization is
a professional association
Household Products Corporation wants to make an offering of securities to the public. This offering is not exempt from registration under the Securities Act of 1933. Before Household Products sells its securities, it must provide investors with
a prospectues
The shares of Home Mortgage Corporation are publicly traded in securities markets. Home Mortgage Corporation is
a publicly held corporation
Dyan, the owner of Expert Restoration Services Inc., adheres to the "principle of rights" theory. Under this theory, a key factor in determining whether a business decision is ethical is how that decision
affects the rights of others
Hudson and Ilka want to market a new line of kayaks and related gear under the brand name Journeys as a corporation- Journeys Inc. To avoid income taxes at the corporate level, they should form
an S corporation
Demario and Evander want to form and do business as a corporation- Farm-2-Fork Restaurant Inc. A corporation is
an artificial person
Riverwalk Restaurants Corporation is a non-investment company that wants to issue stock of $3 million in a 12 month period. Riverwalk, with less than $20 million in annual sales, qualifies as a small business issuer. Before Riverwalk sells the stock, it must provide investors with
an offering circular
Memphis Music Makers Inc.'s stated purpose is to sell musical instruments. If chief executive officer Neal contracts with Open Season Firearms in Memphis Music's name to sell a shotgun, he has likely committed
an ultra vires act
South Carolina enacts a statute to ban advertising in "bad taste". This statute would likely be held by a court to be
an unconstitutional restriction of speech
Bonds & Stocks Corporation, and its officers, directors, and shareholders, buy and sell securities. SEC Rule 10b-5 applies to the purchase or sale of
any security
Otto is considering forms of business organization for Pro Tree Service, his landscaping firm. Like most states, Otto's states requires that to form a LLC, he must file with a central state agency
articles of organization
Ryland, an officer for Sport Park Inc., attempts to apply a duty-based approach to ethical reasoning in conflicts that occur on the job. This approach is based on the idea that a person must
avoid unethical behavior regardless of the consequences
Qatar Global Investments is a foreign entity- a firm owned and operated by investors in a foreign country. With respect to a LLC in the United States, Qatar Global can
become a member
Tech Personnel Inc., is a corporation. Tech Personnel's implied powers enabled to
borrow funds and lend funds
Rollo is the chief executive of Specialty Magazines Inc., which is required to file certain financial reports with the Securities and Exchange Commission (SEC). Under the Sarbanes-Oxley Act of 2002, Rollo must
certify that the reports are complete and accurate
Adult Shop in Bay City sells a variety of publications, including child pornography. Bay City enacts an ordinance prohibiting the sale of such materials. This ordinance is most likely
constitutional under the First Amendment
GetTogether, A Social Media Company encourages its managers to behave ethically, reasoning that lower-level employees will take their cues from management. One of the most important ways to create and maintain an ethical workplace is for GetTogether's management to
demonstate a commitment to ethical decision making
As the trustee of a business trust, Bertoldi is required to
distribute the trust's profits
StartUp Investors, LLC, is an LLC without a written operating agreement. Among the members, a dispute arises concerning the division of profits. Under most LLC statutes, the profits will be
divided equally among the members
Bread & Brews Inc., files its articles of incorporation with the appropriate government agency. Least likely to appear in the articles is the name of
each of the corporation's shareholders
HVAC Heating & Air Conditioning Inc., is a public company whose shares are traded in the public securities markets. Under the Sarbanes-Oxley Act of 2002, to ensure that HVAC's financial results are accurate and timely, the firm's senior officers must set up and maintain
internal "disclosure controls and procedures"
In Coastal Fishing Company's suit against Dockside Marina Inc., the jury returns a verdict in Coastal's favor. Dockside files a motion stating that even if the evidence is viewed in the light most favorable to Coastal, a reasonable jury should not have found in its favor. This is a motion for
judgment n.o.v
To raise capital to form Business Apps Corporation with Cris, Dona sells bonds and stock in other companies, and plans to register an initial public offering under the Securities Act of 1933. SEC Rule 10b-5 covers
just about any form of securities
Dhani, an accountant for Eureka! Inc. learns of undisclosed company plans to market a new laptop. Dhani buys 1,000 shares of Eureka stock. He reveals the company plans to Fay, who tells Geoff. Both Fay and Geoff buy 100 shares. Geoff knows that Fay got her information from Dhani. When Eureka! publicly announces its new laptop, Dhani, Fay, and Geoff sell their stock for profit. 1. Refer to Fact Pattern 42-1B. Under the Securities Exchange Act of 1934, Fay is most likely
liable for insider trading
Refer to Fact Pattern 42-1B. Under the Securities Exchange Act of 1934, Geoff is most likely
liable for insider trading
A Maryland state court can exercise jurisdiction over National Insurance Corporation, an out-of-state company, if the firm has
minimum contacts with the state
The Pennsylvania legislature enacts a state law that violates the U.S. Constitution. This law can be enforced by
no one
Bay City Merchants Corporation has six shareholders, four of whom are members of the same family. All of Bay City's shareholders agree in writing to operate without shareholders' meetings. Under the Revised Model Business Corporation Act, this most likely warrants
no penalties or sanctions
Gabriella is a beneficiary of a business trust. As a beneficiary, she is required to
none of the choices
As the beneficiary of a business trust, Kevin's liability for trust debts and obligations is
nothing
Boutique Bodega Corporation would like to change its corporate status to that of an S corporation to avoid income taxes at the corporate level. To qualify, the shareholders must not be
partnerships
Rafaela Art Gallery and Sequoia Exhibitions form a joint venture. When a dispute arises, Rafaela files a suit against Sequoia. The court is most likely to apply the same principles to this joint venture as it applies to
partnerships
Qiara is a holder of preffered stock in Rio Grande Irrigation & Development, Inc. Qiara has priority over holders of Rio common stock as to
payment of dividends
Kalin, Liza, and other consumers form MuniMart Cooperative. This form of business organization makes it possible for these individuals to
pool their resources to gain an advantage in the marketplace
Boats & Yachts Corporation is a public company, which California regulates and in which Dorian invests. The Sarbanes-Oxley Act of 2002 introduced direct federal corporate governance requirement to
public companies
Cotton Products Corporation is a public company whose shares are traded in the public securities markets. With respect to financial and other significant information concerning its securities, the Securities Act of 1933
requires disclosure
In studying the business law, students also review ethics in a business context. Ethics includes the study of what constitutes
right or wrong behavior
Maggie and Nate enter into a contract for the sale of a car, but Nate later refuses to deliver the car. Maggie asks a court to order Nate to perfor, as promised. Ordering a party to perform what was promised is
specific performance
Neci and Olwen want to form and do business as a corporation- Pastries & Pies Inc. A corporation is a legal entity created and recognized by
state law
A rule promulgated by the Environmental Protection Agency (EPA) limits the amount of carbon that can be emitted fro a car's exhaust system. New York has a state law that allows for much higher emissions. In this situation, under the supremacy clause:
the EPA's decision takes precedence
In an effort to reduce traffic, Bay Town enacts an ordinance that allows only a few specific street vendors to operate in certain areas. A court would likely review this ordinance under the principles of
the equal protection clause
Rico does not work for Street Bikes Company, but wrongfully obtains inside information concerning the firm. Based on the information, Rico buys and sells Street Bikes stock for personal gain. The Securities and Exchange Commission prosecutes Rico, arguing that he is liable because he stole information rightfully belonging to another. This argument is
the misappropriation theory
Grain Mills Corporations is required to register its securities under Section 12 of the Securities Exchange Act of 1934. Section 14(a) of the act regulates
the solicitation of proxies from Grain Mill's shareholders
A statute enacted by the Arizona state legislature to regulate trucking affects interstate commerce. In evaluating this statue, the courts will balance the burden that it imposes on interstate commerce against
the state's interest in regulating the matter.
The state of Massachusetts regulates employment, traffic, land use, and other private activities to protect or promote the public order, health, safety, and general welfare under
the state's police powers
The Constitution sets forth specific powers that can be exercised by the federal government and provides that the federal government has the implied power to undertake actions necessary to carry its expressly designated powers. All other powers are expressly reserved to
the states
Amie is a member of Bowling & Billiards, LLC, a LLC. Amie can participate in the firm's management
to any extent
Oni's Adventure Travel and Paquito's Wild River Tours form a joint venture. Oni can participate in the venture's management
to any extent
Guitar Factory Corporation files a registration statement and delivers a prospectus to the appropriate parties. These items are intended to enable the evaluation of certain financial risks by
unsophisticated investors
Like the bylaws of other corporations, the bylaws of Equipment Leasing, Inc.,
were adopted at its first organizational meeting
