Chapters 1-2 of Legal Environment of Business
A citation is a regulation enacted by a city or county legislative body.
F
A federal statute applies only to those states that agree to apply it within their borders.
F
A law based on a suspect trait will not stand under the equal protection clause even if it is necessary to promote a compelling government interest.
F
A secondary source of law establishes the law on a particular issue.
F
A state may not restrict certain kinds of advertising, even in the interest of preventing consumers from being misled.
F
A statute is a secondary source of law.
F
Because courts of law and equity have merged, the principles of equity are no longer applied.
F
Because laws may change, the ability to analyze and evaluate the legal ramifications of situations as they arise is not a lasting skill.
F
Compartmentalizing the law into discrete topics indicates that each business transaction is subject to only one specific area of the law.
F
Courts will not grant an equitable remedy unless the remedy at law is adequate.
F
Equal protection means that the government must treat all individuals the same.
F
Even if it conflicts with the U.S. Constitution, a state constitution is supreme within that states' borders.
F
If a restriction imposed on speech by the government is content neutral, then a court will not allow it.
F
In situations involving fundamental rights, a law that rationally relates to a legitimate government end will be struck down.
F
Independent regulatory agencies are not subject to the authority of the president.
F
Only Congress may pass a law in conflict with the Constitution.
F
Procedural due process focuses on the content of legislation.
F
State governments do not have any authority to regulate interstate commerce.
F
Substantive due process requires that a person have an opportunity to object to a proposed action before a fair, neutral decision maker.
F
The Fifth Amendment allows persons to be deprived of property without due process of law.
F
The U.S. Constitution divides powers among four branches of government.
F
The commerce clause has had no greater impact on business than any other provision in the Constitution.
F
The commerce clause has never been held to support the federal regulation of noncommercial activities that take place wholly within a state's borders.
F
The free exercise clause prohibits the government from passing laws that have any impact on religion.
F
The rights secured by the Bill of Rights are absolute.
F
The study of business law does not involve an ethical dimension.
F
Under the privileges and immunities clause, the federal government has the power to regulate commercial activities among the states.
F
When there is a direct conflict between a federal law and a state law, both laws are rendered invalid.
F
With respect to the study of jurisprudence, there is only one school of legal thought.
F
A law that that limits a fundamental right may be held to violate substantive due process.
T
A local ordinance commonly has to do with a matter concerning only a local governing unit.
T
Courts often refer to secondary sources of law for guidance in interpreting and applying a primary source of law.
T
In the United States, the law consists of written laws and court decisions.
T
International law derives from a variety of sources, including the laws of individual nations.
T
Often, more than one rule of law will be applicable to a case.
T
Political speech by corporations falls within the protection of the First Amendment.
T
Rescission is the cancellation of a contractual obligation.
T
Rules issued by administrative agencies affect almost every aspect of a business's operations.
T
State regulatory powers are often referred to as police powers.
T
The U.S. Constitution is the basis of all law in the United States.
T
The United States Supreme Court has held that a constitutional right to privacy is implied by several of the amendments in the Bill of Rights.
T
The basis of a civil law system is a written code of laws.
T
The first ten amendments to the U.S. Constitution are commonly known as the Bill of Rights.
T
The legal rules that control a business's actions reflect past and current thinking about how similar businesses should and should not act.
T
The system of checks and balances in the U.S. Constitution allows each branch of government to limit the actions of the other branches.
T
Under the Ninth Amendment, people have rights in addition to those specified in the Constitution.
T
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.
T
A precedent is
a court decision that furnishes an example for deciding subsequent cases involving similar or identical facts or principles.
The United States Supreme Court issues an opinion that can be found at __ U.S. __, 138 S.Ct. 617, 199 L.Ed.2d 501. "617" is
a page number in the referenced volume.
An award of damages is
a payment of money or property.
In Peyton v. Quality Motors, 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 Rikki v. Street Deals, Inc., a case with similar facts. Under the doctrine of stare decisis, the trial court is likely to
allow the minor to cancel the contract.
Ordering a party to perform what was promised is
an equitable remedy.
An injunction is
an order to do or to refrain from doing a certain act.
Book Stop, a bookstore in Capital City, sells publications that criticize government actions and policies. The city enacts an ordinance prohibiting the sale of such materials in the interest of preserving public tranquility. This ordinance is most likely
an unconstitutional restriction of speech.
Mind Games Inc. markets a variety of shooting, fighting, and hunting video games. A state statue is enacted to require all game makers to label any games with an option to kill something as "excessively violent." A court would likely hold this regulation to be
an unconstitutional restriction of speech.
Utah enacts a statute to ban advertising in "bad taste." Most likely, a court would hold this statute to be
an unconstitutional restriction of speech.
Primary sources of law include
case law.
The classification of law that concerns the rights and duties that exist between persons and between citizens and their government is
civil law.
The Uniform Commercial Code provides a set of rules governing
commercial transactions.
Regulations issued by a state or local agency may affect all of the following aspects of a business's operations except
compliance with conflicting federal agency regulations.
Metro City enacts an ordinance that bans the use of "sound amplifying systems" on public streets. Niles wants to campaign for a seat on the city council by broadcasting his message through speakers mounted on a truck. In Niles's suit against the city, a court would likely hold the ordinance to be
constitutional under the First Amendment.
River City enacts an ordinance that prohibits all advertising on the sides of trucks. A court would likely review this ordinance under the principles of
due process
Rory, the chief executive officer of Spout Off Inc., a website for short rants, claims that certain state and federal government actions infringe on rights guaranteed by the Bill of Rights. Most of these guarantees have been held to limit
federal and state actions.
In the case of Sales Corp. v. Transport Co., the court may rule contrary to a precedent if the court decides that the precedent
is incorrect or inapplicable.
Secondary sources of law include
legal scholars' research.
A constitution sets forth a government's
limits and powers.
Power, Inc., is a corporation engaged in the business of producing, refining, and distributing energy resources. With respect to the firm's managers, legal concepts can be useful for Power's
management in accounting & finance, human resources, & marketing.
At one time, a court of law could grant as a remedy only
monetary damages.
The Florida legislature enacts a state law that violates the U.S. Constitution. This law can be enforced by
no one.
Pat stands in front of Rogue's Tavern, shouting "fighting words" that are likely to incite Rogue's patrons to respond violently. Does the First Amendment protect this speech?
no; none of the time.
Peoples Rights Organization (PRO), a political lobbying group, wants a certain policy enacted into law. If PRO's policy conflicts with the U.S. Constitution, a law embodying it can be imposed by
none of the choices (*not congress, state or president*)
Bryan creates a website to post threatening messages about celebrities. Under the First Amendment, these messages are most likely protected
none of the time.
Under the First Amendment, in comparison with noncommercial speech, the protection given commercial ads is
not as extensive
The members of Climate Action believe that a recently enacted federal law is unconstitutional. They write and sign a petition to the government to repeal the law, refuse to obey it, and stop others from complying with it. Under the First Amendment, these individuals have a right to
petition the government.
The state of Florida can regulate building contractors and building codes in the state under its
police powers.
Common law rules develop from
principles underlying judges' decisions in actual controversies.
Mia claims that a North Carolina state statute infringes on her "procedural due process" rights. This claim focuses on
procedures used in making decisions to take life, liberty, or property.
Pharma Corporation expresses opinions on political issues through its financial contributions to political action committees and other groups. Under the First Amendment, Pharma's "expression" is most likely
protected
Power Company creates a t-shirt design to express support for state tax credits favoring the use of energy-efficient products. The firm distributes the t-shirts to many of its customers. The t-shirts are an example of
symbolic speech.
The basis of all law in the United States is
the U.S. Constitution.
The federal government has the power to regulate commercial activities among the states under
the commerce clause.
Jared claims that a Kentucky state statute infringes on his "substantive due process" rights. This claim focuses on
the content of the statute.
Kansas enacts a law requiring all businesses in the state to donate 10 percent of their profits to Protestant churches that provide certain services to persons whose income is below the poverty level. Lo-Price Stores files a suit to block the law's enforcement. The court would likely hold that this law violates
the establishment clause.
Alix posts a podcast on the Believe! website in which she insists that Congress base all federal law on her religious principles. Under the First Amendment, Alix is guaranteed
the freedoms of religion and speech.
Each court has a jurisdiction. Jurisdiction is best defined as
the geographic area in which a court has the power to apply the law.
Believing that a higher, or universal, law exists that applies to all human beings, and that each written law should reflect the principles inherent in this higher law, is
the natural law tradition.
When Lara and Mick cannot resolve their dispute amicably, Lara initiates a lawsuit against Mick. Lara is
the plaintiff.
The term checks and balances refers to the system under which
the powers of government are divided among its branches, each of which exercises a check on the actions of the others.
The Food and Drug Administration (FDA) is an executive agency. As an executive agency, the FDA is subject to the authority of
the president.
Administrative law includes
the rules, orders, and decisions of a government agency.
On a challenge to a provision in a state constitution that conflicts with a provision in the U.S. Constitution
the state provision will not be enforced.
A statute enacted by the Wyoming state legislature to regulate trucking affects interstate commerce. In evaluating this statute, the courts will weigh the burden that it imposes on interstate commerce against
the state's interest in regulating the matter.
A federal form of government is one in which the national government shares sovereign power with
the states.
Under the U.S. Constitution, the federal government has the power to regulate commercial activities among the states. This grant implies that the regulation of such activities is not within the authority of
the states.
NatGas Corporation obtains a federal license to operate a gas pipeline through a certain area of Oregon. The Oregon state legislature enacts a law that bans gas pipelines in that area. Most likely, the state law violates
the supremacy clause.
A constitution is a primary source of law.
true
Congress or a state legislature establishes an administrative agency to perform a specific function.
true
Only if a state legislature adopts a uniform law does that law become part of the statutory law of that state.
true
Centre City enacts an ordinance that bans the distribution of all printed materials on city streets. Diners Café opposes the city's latest "revenue-enhancing" measure—a tax on prepared food sales—and wants to protest by distributing handbills. In Diners' suit against the city, a court would likely hold the ban on printed materials to be
unconstitutional under the First Amendment.
Criminal statutes proscribe
wrongs committed against society for which society demands redress.