Business Law Exam 1 (Chapter 1-6)

Appellant

is the party who appeals a lower court's decision

Important functions of law is to provide:

stability and predictability

Outcome-based ethics looks at the impact of decisions on key___

stakeholders

The doctrine of judicial review allows

the judicial branch to decide whether laws or actions of the other two branches are constitutional

Defendant

the party being sued; a defense is raised by defendant

Remedies in equity

the remedies granted by the equity courts

Marshall owns and operates a construction firm. He uses inexpensive and low-grade building products and accepts inferior carpentry work from his subcontractors. Nevertheless, Marshall complies with all the city building codes as well as all state and federal laws. Has he fulfilled all of his ethical obligations? a. Yes, because ethical obligations require only legal behavior. b. Yes, because legal standards are stricter than ethical standards. c. No, because legal compliance is regarded as the moral minimum. d. No, because ethics is too hard to define.

C

Provisions of the Fifth and Fourteenth Amendments guarantee that no person shall be deprived of life, liberty, or property without due process of law and this clause applies to all "legal persons," including: a. individuals only. b. beings in nature, including humans and animals. c. individuals and corporations.

C

Ted is the owner and chief executive officer of a business. He recently began an advertising campaign to promote a new product that is regulated by state law. The law is somewhat unclear. Before launching the campaign, he researched the relevant law and consulted with his attorney in an effort to comply with the law. Nevertheless, the attorney general of his state has filed a lawsuit against him for deceptive advertising. Ted's best defense is that a. his firm made a profit on the product. b. his attorney was incompetent. c. he acted in good faith. d. the law is unfair.

C

in rem jurisdiction

Court jurisdiction over a defendant property

in personam jurisdiction

Court jurisdiction over the person involved in a legal action; personal jurisdiction

If the court in Montana wants to be able to hear the case against Wizard internet the court has to have: a. Jurisdiction over the Wizard internet. b. Jurisdiction over the subject matter of the lawsuit. c. Jurisdiction over the plaintiff only. d. Both jurisdiction over the Wizard internet & jurisdiction over the subject matter of the lawsuit.

D

In the case, the plaintiffs may ask the Montana courts to use a long arm statute. A long arm statute: a. can force someone to appear in a court in a state in which they do not live. b. is established using a sliding scale test if business is an internet business. c. can be invoked if someone has minimum contacts with a state. d. All of these choices are correct.

D

Regan owns and manages The Coffee Shoppe. She likes to experiment with different management styles and life philosophies. She recently studied Kantian ethics and asks her employees to begin following Kant's categorical imperative at work. This means that the employees should a. follow the Golden Rule. b. follow all city ordinances and state and federal law, and no more. c. consider or weigh all of the costs and all of the benefits of their actions before making decisions. d. consider their actions in light of the consequences if everyone in society acted the same way.

D

Stan, a citizen of Iowa, files a lawsuit in an Iowa state trial court against Jalisco Farm Supply, a Texas company that sells supplies in Iowa. The court has original jurisdiction because a. the court has concurrent jurisdiction. b. the court has venue. c. the parties have diversity of citizenship. d. the case is being heard for the first time

D

Appellate or Reviewing Courts

Deal with question of law

Working together to craft a consensus decision or plan of action is the ___

Decision

Executive Branch Role

Enforces the laws

Ninth Amendment

Establishes that the people have rights in addition to those specified in the constitution

____ is the analysis of the final decision after it has been implemented

Evaluation

Two basic types of administrative agencies

Executive agencies and independent regulatory agencies

Judicial Branch Role

Interprets the laws

Cost-benefit analysis

Involves an assessment of the negative and positive effects of alternative actions on these individual

Uniform Commercial Code

Is a uniform law adopted by all states that facilitates commerce

writ of certiorari

Is an order issued by the Supreme Court to a lower court requiring the latter to send it the record of the case for review

Appellee

Is the party against whom the appeal is taken

A Kansas City law imposes prison terms without a trial on street entertainers who operate in certain areas. A court would likely review this statute under the principles of: Procedural due or substantive due

Procedural due process

third Amendment

Prohibits lodging of soldiers

Fourth Amendment

Prohibits unreasonable searches and seizures of persons or property

An independent regulatory agency is usually run by ____

a commission or board

triple bottom line

a corporation's profits its impact on people and its impact on the planet

questions of fact

an issue involving a factual dispute that can only be decidedly a judge

Categorical imperative

ethical guideline for behavior

Exclusive Jurisdiction types of cases

federal crime, bankruptcy, most patent and copyright claims, and any lawsuits against the United States

The U.S. Constitution created a ____

federal form of government

Charles loses his breach-of-contract case against Micheletta in a Georgia state trial court. Charles appeals to the state court of appeals. Losing again, he files his next appeal with a. the Georgia Supreme Court. b. a U.S. Circuit Court of Appeals. c. a U.S. district court. d. the United States Supreme Court.

A

Federal administrative agencies are created: a. by enabling legislation passed by Congress. b. without any formal action. c. by legislative orders issued by the president.

A

Karl sells Jason his house. After moving in, Jason learns that Karl failed to disclose serious defects in the house. Jason sues Karl. After the pretrial procedures are completed, the case enters the trial phase. The attorneys begin the process of voir dire. During voir dire a. jurors are picked from a jury pool. b. the bailiff organizes the courtroom so that the trial can proceed in a proper fashion. c. the attorneys determine the appropriate number of jurors. d. the attorneys view and discuss pretrial documents obtained during discovery.

A

Marco files a lawsuit against Allied Company in an Oregon court with limited jurisdiction. The difference between general and limited jurisdiction is based on: a. the subject matter of the cases that the court can decide. b. how many defendants are named in the lawsuit. c. whether a case is brought by an individual or a business. d. whether the court is exercising in personam or in rem jurisdiction.

A

Most statutory rape laws apply to men, but not to women. Do these laws pass intermediate scrutiny? a. Yes, because males and females are not similarly situated and the state has an interest in preventing illegal teenage pregnancies. b. Yes, because the state can legally discriminate when the legislature passes appropriate statutes. c. No, because they are not symmetrical with respect to males and females.

A

Motor Sports, Inc., sues A-Z Speed. Motor Sports alleges that A-Z breached (failed to perform) a contract that required A-Z to sell ten Jet Skis to Motor Sports. Under the rules governing discovery, Motor Sports is most likely entitled to obtain a. documents in A-Z's possession relating to the contract. b. physical examinations of key employees of A-Z. c. access to the contents of A-Z's top executives' safe-deposit boxes. d. permission for Motor Sports' president to personally inspect the contents of all of A-Z's paper records and computer files.

A

U.S Constitution Article II

created the executive branch of government

U.S Constitution Article III

created the judicial branch of government

U.S. Constitution Article I

created the legislative of government

Listing possible actions and evaluate each is the ___ step

discussion

Binding authority

A source of law that courts must follow when deciding a case

Long arm statute

A state statute that permits a state to obtain personal jurisdiction over nonresident defendants. A defendant must have "minimum contacts" with that state for the statute to apply

Writ of certiorari

A writ from a higher court asking the lower court for the record of a case

Assume that Congress passes a law establishing a new administrative agency to oversee cyberlaw issues. The agency writes rules to enable it to carry out its duties. The rules written by the agency will be known as a part of

Administrative Law

Legislative rules

Administrative agency rules that affect substantive legal rights and carry the same weight as congressionally enacted statutes

Interpretive rules

Administrative agency rules that simply declare policies or explain the agency's positions and do not establish any legal rights or obligations

What system, of justice do American and English courts follow?

Adversarial system of justice

Delegation doctrine

Allow congress to delegate some of its power to make and implement laws to administrative agencies

Precedent

interpretation of a decision

An order directing a sheriff to seize and sell the defendant's nonexempt assets is called a:

writ of execution

Pleadings

Complaint and answer taken together

____ identifies any relevant legal and ethical principles that will guide the decision

Inquiry

The compelling government interest test is used by the courts to determine whether a law regulating the content of speech will be permissible. a. True b. False

True

When there is a direct conflict between a federal and a state law, the state law is rendered invalid. a. True b. False

True

Equal Protection Clause

no state will "deny to any person within its jurisdiction the equal protection of the laws."

Supremacy Clause

"the supreme Law of the Land."

A state legislature passes a statute prohibiting businesses from supporting any political candidate. If some business owners challenge the constitutionality of the law in court, will the law be upheld? a. No, because the law is an unconstitutional restriction on free speech. b. Yes, because political speech is restricted if "constitutionally permissible." c. Yes, because the law only prohibits political speech by businesses, not by individual citizens. d. No, because the business owners' privileges and immunities have been violated.

A

Assume that the company wanted to do some advertising in the states where the candidates were campaigning about the benefits of coal, but they were not of a political nature. Which of the following is true when it comes to advertising? a. Under the First Amendment, commercial speech is given less protection than non-commercial speech. b. Under the First Amendment, commercial speech is given more protection than non-commercial speech. c. Under the First Amendment, commercial speech is given the same protection as non-commercial speech. d. Under the First Amendment, commercial speech is given no protection.

A

Bribery is acceptable in certain foreign countries. Indeed, U.S. Development, Inc., has found that the only way it can ensure delivery on certain contracts in these countries is to bribe the officials. This is a. permitted by U.S. law if the payment is made to a minor official to speed up administrative procedures. b. prohibited by U.S. law under all circumstances. c. prohibited by U.S. law if the contract price exceeds $20,000. d. permitted by U.S. law if the payment is made to government officials for the purpose of securing advantageous contracts.

A

Cal-Ban 3000 was a weight-loss drug made by Health Care, a Florida corporation. Tart, a citizen of North Carolina, read ads for the product in a newspaper and bought Cal-Ban in North Carolina from a local pharmacy. Within a week of taking the supplement, Tart suffered a ruptured colon. Alleging that the injury was caused by Cal-Ban, Tart sued Health Care in a North Carolina state court. Health Care asked the court to dismiss the case, arguing that the North Carolina court could not exercise personal jurisdiction over Health Care. The court most likely a. refused to dismiss the case, because the defendant had placed the product in the stream of commerce in North Carolina and was subject to being sued in North Carolina. b. refused to dismiss the case, because it was not fair to make Tart travel to Florida for trial. c. dismissed the case because North Carolina did not have personal jurisdiction over the defendant, so Tart would have to sue in the Florida courts. d. dismissed the case because the dispute should be tried in a federal court, given that the defendant and the plaintiff were from different states.

A

The Iowa legislature passed a law banning trucks 65 feet long or longer from operating on its roads and highways because big trucks do more damage to roads than smaller trucks and are involved in more serious accidents. Consolidated Freightways (CF) drove big trucks through Iowa on a regular basis, and these trucks were legal in other states. Switching to smaller trucks for trips through Iowa was inconvenient and costly. CF filed a lawsuit contending that the statute was unconstitutional. The court most likely found that the Iowa statute was a. unconstitutional under the "dormant" commerce clause. b. constitutional because Iowa had a compelling state interest in passing the law. c. unconstitutional under the supremacy clause. d. unconstitutional under the privileges and immunities clause.

A

When regulated groups oppose a rule adopted by an agency, they can bring a lawsuit arguing that the rule was not authorized by the enabling statute. a. True b. False

A

Stare decisis

A common law doctrine under which judges are obligated to follow the precedents established in prior decisions

Statutes of limitations

A federal or state statute setting the maximum time period during which a certain action can be brought or certain rights enforced

Verdict

A formal decision made by a jury

Brief

A formal legal document submitted by the attorney for the appellant to an appellate court when a case is appealed. outlines the facts and issues of the case, the judge's rulings or jury's findings that should be reversed or modified, the applicable law, and the arguments on the client's behalf

Bureaucracy

A large organization that is structured hierarchically to carry out specific functions

Criminal Law

A law against not performing an employment agreement

Utilitarian

An approach to ethical reasoning in which ethically correct behavior is related to an evaluation of the consequences of a given action on those who will be affected by it. In utilitarian reasoning, a "good" decision is one that results in the greatest good for the greatest number of people affected by the decision

Closing argument

An argument made after the plaintiff and defendant have rested their cases. Closing arguments are made prior to the jury charges

A city ordinance allows only two hot dog stands to operate in the city's downtown area. If someone who would like to add another hot dog stand challenges this ordinance under the equal protection clause, the rule will be subject to a. intermediate scrutiny. b. the rational basis test. c. the police power test. d. strict scrutiny.

B

Check My Work Patrick, the human resources manager at Acme Company, must decide how to cut personnel costs. This decision will harm employees who are laid off or fired. Patrick must balance the interests of employees who have been loyal to the firm for a long time against the interests of a. the state courts. b. Acme's shareholders. c. the city council. d. Acme's competitors.

B

Garrett was a commercial tour boat operator on the northern coast of Kauai, Hawaii. He was licensed by the state of Hawaii to operate his boat in Hanalei Bay. The U.S. Department of Transportation and the U.S. Coast Guard also granted Garrett an unrestricted license to operate his boats in Hanalei Bay. Hawaii subsequently passed a law that banned all commercial use of Hanalei Bay. The state refused to renew Garrett's state license and ruled that he was not allowed to operate his vessel based on his federal licenses. Garrett sued the state, alleging that the state law that prohibited him from operating his boat conflicted with the federal law that authorized him to do so. The court probably found that the state law was a. constitutional under the due process clause. b. unconstitutional under the supremacy clause. c. constitutional under the supremacy clause. d. unconstitutional under the equal protection clause.

B

Secondary sources of law

Books and articles that summarize and clarify primary sources

Business ethics does NOT focus on: a. How businesspersons apply moral and ethical principles in making their decisions. b. The decisions businesses must make and whether they are right or wrong. c. How businesses are treated under international law

C

If you are a farmer who grows and sells locally, can you conclude that the Commerce Clause does NOT apply to your activities and actions? a. Yes, because you are engaged in intrastate commerce. b. Yes, because your state legislature says so. c. No, because the Supreme Court and Congress have interpreted the Commerce Clause extremely broadly.

C

Lisa owns and manages a small auto-parts store. She hesitates to discuss business ethics with her employees because she wants them to spend more time with the customers and she also doesn't think she should tell them how to behave. Is Lisa going to create an ethical workplace? Why or why not? a. Lisa's attitude will not affect workplace ethics because ethics is strictly private. b. Lisa's attitude will not affect workplace ethics because management has little ability to affect employee behavior. c. Lisa is unlikely to create an ethical workplace because the attitude of top management influences employee ethics.

C

The city of Trenton, New Jersey, passed an ordinance making it unlawful to use any form of sound amplification on the city streets. Keller mounted a speaker on a truck. Through the speaker, he played music and spoke on a microphone while driving on city streets. Keller was convicted and fined $50. He appealed, arguing that the ordinance violated his rights of free speech and free assembly. The city claimed that the ordinance served a legitimate governmental function in keeping the city streets safe and orderly, and did not prohibit or unduly restrict any particular speech. The court probably found that the ordinance was a. unconstitutional under the equal protection clause. b. constitutional under the establishment clause. c. constitutional as a reasonable restriction on fundamental rights. d. unconstitutional as an unreasonable restriction on fundamental rights.

C

The law that specifies the procedural requirements that all federal agencies must follow in their rulemaking, adjudication, and other functions is the: a. Occupational Safety and Health Act. b. Administrative Open Government Act. c. Administrative Procedure Act.

C

The main difference between independent regulatory agencies and executive agencies is that: a. independent regulatory agencies are subject only to the authority of Congress. b. executive agencies report only to Congress. c. executive agencies are subject to the authority of the president to a greater degree than are independent regulatory agencies.

C

The state of Michigan was in an economic crisis. The governor and legislature asked Congress to exempt Michigan's citizens from their federal tax burden for two years. Does Congress have the authority to make the exemption? a. Yes, the privileges and immunities clause allows Congress to grant privileges to certain states. b. Yes, Congress has taxing and spending power to use as it wishes. c. No, the taxing and spending clause requires that taxes be imposed uniformly throughout the United States. d. No, the commerce clause does not allow different rules for different states.

C

The upper-level management of Nationwide Sales Corporation wants to fire Andy because he is a nonproductive employee. Using a utilitarian approach to business ethics, management would probably consider a. how Andy and his family might suffer if Andy were to lose his job. b. how all other employees in the company would feel about Andy's firing. c. the costs and benefits of retaining a nonproductive employee. d. Andy's fundamental rights.

C

Under what circumstances will a judge grant a motion for a new trial? a. When the jury did not ask enough questions during the trial. b. When the attorneys did not ask enough questions of witnesses. c. When the jury clearly misapplied the law or misunderstood the evidence.

C

Upper management wants to fire Gary because he is nonproductive. Using the utilitarian approach to business ethics, management would probably NOT consider a. how the action of firing Gary would affect the productivity of other workers. b. the costs and benefits of retaining a nonproductive employee. c. Gary's fundamental rights

C

What type of powers do the states have to regulate or prohibit private activities? a. Zoning powers b. Sovereign powers c. Police powers

C

Whenever the language in the Bill of Rights describing a right is overly broad or unclear in a particular situation, what does NOT occur: a. One of the parties involved may bring a lawsuit. b. Ultimately, the Supreme Court decides what the language means. c. The individual state legislatures interpret the unclear language.

C

Your state passes a law prohibiting businesses from supporting political candidates. You go to court and challenge the law's constitutionality. Will the law be upheld? a. Yes, because commercial speech is restricted if "constitutionally permissible." b. Yes, because the law only prohibits political speech by businesses, not individual citizens. c. No, because the law is an unconstitutional restriction of free speech.

C

CHAPTER 2

CHAPTER 2

CHAPTER 4

CHAPTER 4

CHAPTER 5

CHAPTER 5

CHAPTER 6

CHAPTER 6

Exclusive Federal Jurisdiction

Case involving federal crimes, bankruptcy, patents, copyrights, trademarks, and suits against the United States

Exclusive State Jurisdiction

Cases involving all matters not subject to federal jurisdiction

Concurrent Jurisdiction

Cases involving federal questions and citizenship cases; a party may choose to bring suit in either federal or state court

Standing to sue has three elements

Causation, remedy, and harm

Managers who set unrealistic production or sales goals decrease the probability that employees will act unethically.

False

On appeal, most courts reverse the trial court's decision

False

T/F When the opposing attorney asks questions of a witness, she is engaging in reexamination.

False

T/F. Case law is based on the decisions made by those who run administrative agencies. T/F Case law is derived from judges' decisions for actual cases

False

The juries for appellate courts are very small.

False. Appeals are only heard by judges; there are no juries

State police powers only authorize state police forces. a. True b. False

False; Police powers include not only police forces, but the promotion of health, safety, and general welfare

Constitutional law

Federal governments and the states have separate written constitutions that set the general organizations, powers, and limits of government

outcome-based ethics

Focuses on the impacts of a decision on society or on key stakeholders

Fifth Amendment

Grand jury, double jeopardy, self-crimination

Due process clause

Guarantee that no person shall be deprived of life, liberty, or property without due process of law

First Amendment

Guarantees the freedoms of religion, speech, and the press and the right to assemble peaceably and to petition the government

questions of law

In a lawsuit, an issue involving the application or interpretation of a law. Therefore, the judge, and not the jury, decides the issue

Administrative law

Judge-made law; consists of the rules, orders, and decisions of administrative agencies

____ explains the reasons why a proposal is valid

Justification

Civil Law

Law that governs relations between persons

Statutory law

Laws enacted by legislative bodies at any level of government; such as statutes passed by congress; also includes ordinances

Substantive due process

Limits what government may do in its legislative and executive capacities

Legislative Branch Role

Makes the laws

The power of judicial review has remained unchallenged since which Supreme Court decision?

Marbury v. Madison

Preponderance of evidence vs Beyond a reasonable doubt

Most civil cases including automobile accidents and most criminal trials

At the conclusion of the plaintiff's case, the defendant's attorney may ask for a___

Motion for a judgment as a matter of law

Trial Courts

Often deal with questions of fact

Plaintiff

One who initiates a lawsuit

Administrative agencies are created to:

Perform specific government functions

Then the defendant's attorney can refute that evidence in a ___

Rejoinder

Common Law

That body of law developed from custom or judicial decisions in English and US courts, not attributable to a legislature

duty-based ethics

That every person has certain duties to others; Religious derived

Filing the appeal

The appealing party files a notice of appeal with the clerk of trial court

Appellate Review

The appellate court does not hear evidence, but they may affirm or reverse the trial court's judgment or demand the case for further proceedings

Jurisdiction

The authority of a court to hear and decide a specific action

Triple bottom line

The bottom line is people, planet, and profits

Venue

The geographical district in which an action is tried and from which the jury is selected

Procedural due process

The government must give a person proper notice and an opportunity to be heard so that procedures are fair

Moral minimum

The minimum degree of ethical behavior expected of a business firm, which is usually defined as compliance with the law

Respondent

The party bringing a lawsuit

Judicial Review

The process by which courts decide on the constitutionality of legislative enactments and actions of the executive branch

Rebuttal

The refutation of evidence introduced by an adverse party's attorney

Standing to sue

The requirement to bring a lawsuit

Cases Law

The rules, orders, and decisions of federal state, or local government administrative agencies

The application of the principle of rights, or rights theory, often involves conflicting rights

True

All administrative agencies taken together are considered bureaucracy of the federal government

True

An action is morally correct when it creates the least amount of harm for the fewest people.

True

Rights established under deeds, wills, and contracts in one state must be honored by other states. a. True b. False

True

Primary sources of law

US constitution, statutory law, regulations, and case law and common law doctrines

When Congress passes a law, you can find it in which publication?

United States Statutes at Large

Executive Agencies

at national level; are subject to the authority of the president (US Department of Health and Human Services)

Commerce clase

authorizes national gov. to regulate almost every commercial enterprise

Second Amendment

bear arms

Equity

branch of the law; founded on notions of justice and fair dealing

Commerce Clause

gives Congress the power to regulate interstate commerce

When making a decision:

legal implications, public relations impact, safety risk, financial implications

Business ethics

looks at the decisions businesses make or have to make and whether those decisions are right or wrong

Search warrants are given when there is ___

probable cause

voir dire

process of choosing a jury

Discovery

process of obtaining information from the opposing party or from witness prior to trial

The application of morals and ethics to a situation is usually called ethical____

reasoning

After the defendant's attorney is finished introducing evidence, the plaintiff's attorney can present a _____

rebuttal

Administrative agencies powers

rule making, enforcement, adjudication

Remedies at law

takes the form of monetary damages (an amount given to a party whose legal interests have been injured)

Ethics can be defined as the study of

what constitutes right and wrong behavior