Business Law Exam #1 Chapter 1 - 5
50. Appellate courts have no discretionary power to reject an appeal—appellate courts must accept all appeals.
False
6. Administrative law plays a relatively insignificant role in the regulatory environment of business.
False
8. A court should overturn its precedents unless there is a compelling reason not to.
False
1. In the United States, the law consists of written laws and court decisions.
True
12. State regulatory powers are often referred to as police powers.
True
17. The first ten amendments to the U.S. Constitution are commonly known as the Bill of Rights.
True
10. There is one right answer to every legal question.
False
11. Only Congress may pass a law in conflict with the Constitution.
False
14. The U.S. Constitution divides powers among four branches of government.
False
15. The commerce clause has had no greater impact on business than any other provision in the Constitution.
False
16. When there is a direct conflict between a federal law and a state law, both laws are rendered invalid.
False
19. The rights secured by the Bill of Rights are absolute.
False
2. The study of business law does not involve an ethical dimension.
False
21. Conduct that is legal is ethically unquestionable.
False
29. Once a company has investigated any foreign suppliers, it is unnecessary to continue to monitor those suppliers.
False
3. Even if it conflicts with the U.S. Constitution, a state constitution is supreme within that states' borders.
False
31. In the American governmental system, applying the laws to specific situations is the essential role of Congress.
False
32. Only the United States Supreme Court exercises the power of judicial review.
False
33. Judicial review is the process through which Congress approves or rejects judicial appointments.
False
34. Any court can exercise jurisdiction over any person.
False
36. Doing business within a jurisdiction is not enough for most courts to compel a defendant to appear.
False
37. Negotiation requires the use of a neutral third party to facilitate a settlement.
False
39. The simplest form of alternative dispute resolution is mediation.
False
41. Attempts to settle a case must be concluded before the litigation process begins.
False
43. A default judgment is a judgment entered by a court in a case in which neither party prevails.
False
45. Discovery is the process of serving a summons and a copy of a complaint on a defendant.
False
48. Because expert testimony is effective with juries, there is no potential for the abuse in its use at trial.
False
49. Before a trial begins, the jury renders a preliminary verdict to indicate to the attorneys what they must attempt to prove during the course of the trial.
False
5. Independent regulatory agencies are not subject to the authority of the president.
False
30. A company's ethical code of conduct is not ( )? A. a guide for the company's decision-makers facing ethical questions. B. an outline of the company's policies. C. law. D. a set of rules that the company can enforce.
Law
13. Under the full faith and credit clause, any judicial decision in one state with respect to contract rights will be honored and enforced in all states.
True
18. Corporations enjoy many of the same rights and privileges as natural persons do.
True
20. Speech can be subject to reasonable restrictions.
True
22. Ethics is a branch of philosophy that focuses on morality.
True
23. It can be difficult to predict with certainty how a court will apply a given law to a particular action.
True
24. The effectiveness of an industry code of ethics is partly determined by the commitment of the industry or company leadership to enforce it.
True
25. Company codes of conduct outline company policies on particular issues and how employees are expected to act.
True
26. One view of the role of business in society is the perceived duty of a company only to generate revenue for its owners.
True
27. One of the most important ways to maintain an ethical workplace is for management to set standards and expectations for ethical behavior.
True
28. Corporate social responsibility may increase a business's reputation or goodwill.
True
35. A federal court will apply federal law in a case involving a federal question.
True
38. Multinational corporations agreeing to resolve a dispute through a formal hearing before a panel of experts is a method of alternative dispute resolution.
True
4. The U.S. Constitution is the basis of all law in the United States.
True
40. Arbitration differs from other forms of alternative dispute resolution in that a third party hearing a dispute makes a decision for the parties.
True
42. A complaint contains a brief summary of the facts necessary to show the party filing the complaint is entitled to relief.
True
44. A motion to dismiss asserts that a claim has no basis in law.
True
46. Electronic discovery can reveal significant facts that are not discoverable by other means.
True
47. Picking a jury is an important aspect of litigation strategy.
True
7. The common law is a body of law developed from judicial decisions.
True
9. Often, more than one rule of law will be applicable to a case.
True
