Chapter 4 Business Law
Because of the concept of stare decisis, the U. S. Supreme Court, in interpreting a statute in 2009, will necessarily interpret certain statutory language in the same way as the U. S. Supreme Court interpreted the same statutory language in 1971
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Common law, like statutory law, is prospective
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Even if a statute's words have ordinary, everyday significance, the court will look at the legislative history of the law and public policy in order to interpret the statute.
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OSHA has proposed rules aimed at reducing repetitive-stress injuries. ATC, Inc. disagrees with the proposed rules. ATC, Inc. should challenge the proposed rules in court to prevent them from becoming final rules.
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The President has the power to remove the chairperson of the Consumer Product Safety Commission, an independent federal administrative agency, if the President disagrees with the chairperson's actions.
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The doctrine of stare decisis, though vital to the creation of the common law when this country was settled, is not important to our modern, complex society.
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The largest source of new law is court decisions.
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While at the park, Tasha saw a small child fall into the lake. Tasha did not know the child. Under the common law of most states, Tasha has a legal duty to take reasonable steps to assist the child if Tasha is able to provide positive assistance and the assistance will not jeopardize Tasha's well being
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Actual hearings are required in formal admin agency rule making
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Admin agencies exist at the federal, state and local levels
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From tax returns, the IRS has info concerning Elizabeth Jones. Generally, the IRS may not divulge this info to the FBI unless Elizabeth has given written consent.
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If the President vetoes a bill and if both the House and Senate repass the bill by a two-thirds margin, the bill becomes law.
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The Civil Rights Act of 1964, a federal statute, forbids discrimination on the basis of national origin in employment. According to one of the guidelines, the EEOC will presume a violation of the law if an employer sets a work requirement that employees must speak only English in the workplace. This is an interpretive rule because it interprets the Civil Rights Act.
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The FTC promulgated Telemarketing Sales Rules regulating the activities of telemarketers. One of the rules prohibits telemarketers from calling a person's residence at any time other than between 8:00 a.m. and 9:00 p.m. This legislative rule has the effect of a statute.
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The majority of work done by legislative bodies is performed in committees.
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The Administrative Procedure Act: a. applies to all federal agencies. b. applies to executive branch agencies but not to independent agencies. c. applies to independent agencies but not to executive branch agencies. d. does not apply to federal agencies.
a. applies to all federal agencies
which statement is correct concerning judicial review of an administrative agency's action? a. Courts usually accept the facts of the case as determined by the agency and often defer to the agency's interpretation of the law. b. Courts conduct a de novo review of the case. c. Courts ignore the facts of the case. d. Courts substitute their opinion for that of the agency.
a. courts usually accept the facts of the case as determined by the agency and often defer to the agency's interpretation of the law
The U.S. Supreme Court's holding in Ward's Cove Packing v. Atonio: a. differed from the holding in Griggs v. Duke Power Co. partly because the Court was more conservative at the time Ward's Cove was decided. b. upheld the ruling in Griggs v. Duke Power Co. c. found that overt racial discrimination existed. d. set forth a "business necessity" requirement for employment hiring practices.
a. differed from the holding in Griggs v. Duke Power Co. partly because the court was more conservative at the time Ward's Cove was decided
The concept of stare decisis focuses most on: a. predictability. b. flexibility. c. legislative intent. d. change.
a. predictability
The last protected trait added by Congressman Smith of Virginia to the bill which became Title VII of the Civil Rights Act of 1964 was: a. sex. b. sexual orientation. c. national origin. d. race.
a. sex
If in 1900 the Minnesota Supreme Court ruled that a minor can void a contract at any time during minority and in 2008 the courts in Minnesota still follow this ruling, this is an example of: a. stare decisis. b. the bystander rule. c. statutory law. d. enabling legislation.
a. stare decisis
SharCo and Blyron Productions are each applying for a TV license. In deciding which applicant is better qualified, the FCC will hold an initial hearing before: a. the OSHA. b. an administrative law judge. c. an administrative mediator. d. a House-Senate Conference Committee.
b. an administrative law judge
Psychologist Holtz is working with a patient, Rebecca, who has expressed the intention to seriously harm two of her acquaintances. If you apply the principle set forth by the Supreme Court of CA in the Tarasoff v. Regents of the University of CA case, Psychologists Holtz: a. has, because of the bystander rule, no duty to warn the foreseeable victims about Rebecca's expressed intention to harm them. b. has a duty to exercise reasonable care to protect foreseeable victims of Rebecca's violence. c. is in a special relationship with patients, and this relationship creates a privilege of confidentiality between the communicants. d. will be held to a strict duty of care and will be held liable for any victim's injuries if Holtz failed to warn a them of Rebecca's potential violence toward them.
b. has a duty to exercise reasonable care to protect foreseeable victims of Rebecca's violence
Administrative agency rules consist of: a. executive and independent rules. b. legislative and interpretive rules. c. informal and "notice and comment" rules. d. promulgated and unpromulgated rules.
b. legislation and interpretive rules
TECO Coal Corporation is interested in the inspections that the U.S. Bureau of Mines has conducted over the past year. To secure this information, TECO should: a. issue a subpoena duces tecum. b. make a Freedom of Information Act request. c. make a de novo request. d. assert the substantial evidence rule.
b. make a FOIA request
Congresswoman Sloan introduced a bill in the House of Representatives. If the bill is approved by the House committee specializing in that subject, the bill will go to: a. a Senate committee specializing in the subject matter of the proposed legislation. b. the full House. c. a Conference Committee made up of representatives of both the House and Senate. d. the voters of her state for approval.
b. the full house
what is the major distinction between executive and independent agencies? a. Executive agencies govern business issues while independent agencies regulate individual matters. b. The President has greater control over executive agencies. c. The Administrative Procedure Act regulates independent agencies but not executive agencies. d. Subpoenas may be issued by independent agencies; executive agencies do not have subpoena power.
b. the president has greater control over executive agencies
Tina wishes to learn what records the IRS has about her. Under the Freedom of Information Act (FOIA), a. Tina can only obtain copies of declassified information. b. Tina is entitled to all information the IRS has about her. c. Tina can only obtain information about the IRS, not records concerning herself. d. Tina cannot obtain any information since the IRS is exempt from the FOIA.
b. tina is entitled to all her info the IRS has about her
Bert had his driver's license suspended by the state department of transportation. He believes his constitutional due process rights were violated by the administrative agency. Can he immediately file a court action to have agency's actions reviewed? a. Yes. A court has the jurisdiction to immediately review an agency's alleged unconstitutional action. b. Yes. Bert must specifically allege his constitutional rights have been violated and file a court action in federal court - not a state court. c. No. Bert must first utilize the administrative agency's procedures to review the suspension before he seeks judicial review by a court. d. No. A court of law does not have jurisdiction to review an administrative agency's actions.
c. No. bert must first utilize the administrative agency's procedures to review the suspension before he seeks judicial review by court
Statutory law is to legislative bodies as common law is to: a. England. b. precedent. c. courts. d. administrative regulations
c. courts
Which law regulates how federal agencies make rules, conduct investigations, hold meetings and hearings, obtain information, and reach decisions? a. The 1964 Civil Rights Act. b. The Clean Agency Act. c. The Administrative Procedure Act. d. The Freedom of Information Act.
c. the Administrative Procedure Act
The Consumer Product Safety Commission (CPSC) is an independent federal administrative agency. Which statement is correct about the chairperson? a. The chairperson serves at the whim of the President and can be fired at any time. b. The chairperson can only be fired by the President for good cause. c. The chairperson cannot be fired by the President since the CPSC is an independent agency. d. The chairperson has a lifetime appointment and cannot be fired.
c. the chairperson cannot be fired by the President since the CPSC is an independent agency
Assume that in December 2006, the Environmental Protection Agency (EPA) filed an administrative complaint against Marlin Firearms Co. alleging that the company exceeded chromium emissions limits. The EPA proposed a $257,162 fine. Which statement is correct concerning the administrative agency adjudication? a. A jury decides the matter. b. The Federal Rules of Criminal Procedure govern the admissibility of evidence. c. The losing party has a right to appeal. d. The parties are not represented by attorneys.
c. the losing party has a right to appeal
The Environmental Protection Agency was investigating whether Exgrow, Inc. violated the Clean Air Act. Exgrow refused to give the EPA its computerized reports concerning pollution. To get the reports, EPA should use: a. a stare decisis. b. a de novo. c. an excaliber. d. a subpoena duces tecum.
d. a subpoena duces tecum
The US Supreme Court was asked to decide whether same-sex sexual harassment is a violation of Title VII of the Civil Rights Act. This law forbids discrimination in employment on the basis of sex. In interpreting statutes, the court may use which of the following? a. The plain meaning rule. b. Legislative history. c. Public policy. d. All of the above.
d. all of the above
The power of federal agencies is limited by: a. statutory control in the enabling legislation and the Administrative Procedures Act. b. political control by Congress and the President. c. judicial review. d. All of the above.
d. all of the above
Karen is a strong swimmer. One day she is having a picnic at a lake and sees a man she doesn't know drowning. Generally, Karen: a. has a legal duty to rescue the man. b. has a legal duty to rescue the man, but only if her efforts will not pose a serious threat to her own safety. c. has a legal duty to rescue the man since, as a strong swimmer, she is treated as a "special class" of persons who must get involved in such situations. d. has no legal duty to rescue the man.
d. has no legal duty to rescue the man
A subpoena duces tecum is different from an ordinary subpoena in that a subpoena duces tecum: a. can only be given to an expert to require a personal appearance before a court or administrative hearing. b. is binding on a person even if it is mailed to the person rather than handed to her by a process server. c. allows for privileged or confidential information to be turned over the a court or administrative agency. d. requires the person to bring specified documents to the court or administrative hearing.
d. requires the person to bring specified documents to the court or administrative hearing
the purpose of the FOIA is: a. to give the government access to information concerning citizens, businesses, and organizations. b. to limit the amount of information that the government can collect about its citizens, businesses, and organizations. c. to permit warrantless searches and seizures of evidence when necessary to ensure safety. d. to give citizens, businesses, and organizations access to information that federal agencies are using.
d. to give citizens, businesses, and organizations access to information that federal agencies are using.
TECO Coal Corporation mines and ships more than 6 million tons of coal annually, TECO is comprehensively regulated by the US Bureau of Mines. The US Bureau of Mines may conduct a surprise inspection of one of TECO's mines: a. only if it has a search warrant. b. only if it has a subpoena. c. only if it has reason to believe a violation of a regulation has occurred. d. without a search warrant to ensure safety.
d. without a search warrant to ensure safety
