UND - ACCT 315 - Business Law Test 1

Cato is driving a car in which Diego is a passenger when an accident occurs. Diego is not injured. In Diego's tort action against Cato for negligence, Cato can most likely assert as a successful defense that: a. the risk of a car accident was foreseeable. b. Cato did not intend to cause an accident. c. Diego breached his duty to warn the driver of the impending accident. d. Diego was not injured.

d. Diego was not injured.

The means to enforce a right or compensate for the violation of a right is: a. jurisdiction. b. a cornerstone. c. stare decisis. d. a remedy.

d. a remedy.

Home Care Company is charged with violating a rule of the Social Security Administration. Most likely, Home Care will be required to appear at a hearing presided over by: a. a federal district court judge. b. a U.S. Marshal. c. a federal appellate court judge. d. an administrative law judge.

d. an administrative law judge.

Gina and Harry present their case to an Idaho state court for resolution. The court defers to a different Idaho court's findings of fact in the case, and focuses on the application and interpretation of the law to the dispute. The court currently deciding Gina and Harry's dispute is: a. a trial court. b. a U.S. magistrate's court. c. a special inferior court. d. an appellate court.

d. an appellate court.

For those who have suffered injuries as a result of the wrongful conduct of others, through tort law, society supports: a. fines and imprisonment imposed on the wrongdoer. b. all of the choices. c. interference with the wrongdoer in a way not permitted by law. d. compensation.

d. compensation.

In a suit by Citizens Conservation Organization (CCO) against Deep Mining Inc., CCO serves a written request for the defendant to admit the truth of matters relating to the trial. Deep Mining's admission in response: a. is irrelevant. b. completely absolves the defendant of the issue in question. c. is the basis for a default judgment in the plaintiff's favor. d. conclusively establishes the matter for trial.

d. conclusively establishes the matter for trial.

Holdings Corporation, a top-performing company, may be more likely to behave unethically than a less successful company if: a. the government does not investigate the source of the firm's success. b. the firm begins to focus on long-run profit maximization. c. clients and customers focus solely on the firm's profitability. d. employees feel they are expected to continue performing at a high level.

d. employees feel they are expected to continue performing at a high level.

If a company strictly complies with existing laws, the firm will: a. fulfill no business ethics obligations. b. not need to fulfill any business ethics obligations. c. fulfill all business ethics obligations. d. fulfill some business ethics obligations.

d. fulfill some business ethics obligations.

An ethical code of conduct is not: a. a set of rules that the company can enforce. b. an outline of the company's policies. c. a guide for decision makers facing ethical questions. d. law.

d. law.

Ivy slips and falls on the deck of Jet's Tour Boat and is injured. She incurs medical expenses of $500,000, and files a suit against Jet to recover. Under the "50 percent" rule, if Ivy is more than 50 percent at fault, she will recover: a. the entire amount of the expenses. b. half of the expenses. c. the amount of the expenses attributable to Jet's fault. d. nothing.

d. nothing.

To be protected under the Copyright Act, a work must be: a. none of the choices. b. an inseparable idea and expression. c. a concept, principle, or discovery. d. original and fixed in a durable medium.

d. original and fixed in a durable medium.

Opal is injured and her property is damaged when a truck with defective brakes careens off an adjacent highway and crashes into her home. If Opal brings a successful tort action against the truck's owner for gross negligence, she may be awarded punitive damages to: a. compensate for her total losses. b. all of the choices. c. put her into the same position she would have been in if the tort had not occurred. d. punish the defendant and deter others from similar wrongdoing.

d. punish the defendant and deter others from similar wrongdoing.

Quarry Mining Inc. and Riverside Vineyards agree to resolve a dispute in arbitration. The arbitrator meets with Quarry's representative to discuss the matter without Riverside's representative being present. If this substantially prejudices Riverside's rights, a court will most likely: a. dismiss the dispute. b. review the record of the case. c. file a complaint against the arbitrator. d. set aside any award.

d. set aside any award.

Fabrication, Inc., makes steel forms that are substandard. Geo Manufacturing Company has never bought or used a Fabrication form, but files a suit against the firm, alleging that its products are defective. Fabrication's best ground for dismissal of the suit is that Geo does not have: a. exclusive jurisdiction. b. minimum contacts. c. discovery. d. standing to sue.

d. standing to sue.

Hale, research manager for Investor Fund, Inc., adheres to utilitarian ethics in making business and ethical decisions that involve the actions of the firm. According to this standard, an action is morally correct when it produces the greatest good for: a. the fewest people. b. Investor Fund. c. Hale. d. the most people.

d. the most people.

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: a. the statute's impact on noneconomic activity. b. the federal government's authority to regulate the matter. c. the purpose of interstate commerce. d. the state's interest in regulating the matter.

d. the state's interest in regulating the matter.

Graphix S.A. traffics in labels that bear counterfeit trademarks. This is a crime: a. under no circumstances. b. only if the labels are attached to counterfeit goods. c. only if the labels have negative effects on legitimate businesses. d. under all circumstances.

d. under all circumstances.

Isabel and Josh engage in a business transaction that leads to a dispute. Isabel initiates a lawsuit against Josh by filing a complaint. The sheriff serves Josh with a summons. If Josh chooses to ignore it: a. Isabel will have a judgment entered in her favor. b. Isabel must file an amended complaint. c. Josh will have a judgment entered in his favor. d. Josh must be served with a second summons.

a. Isabel will have a judgment entered in her favor.

Galaxy Research Inc. uses a mark associated with its name to distinguish its services from those of other tech firms. This mark is: a. a service mark. b. a trade secret. c. a trade name. d. none of the choices.

a. a service mark.

France and the United States are signatories of the Berne Convention. Alain, a citizen of France, publishes a book first in France and then in the United States. Alain's copyright must be recognized by: a. all of the signatories of the Berne Convention. b. France only. c. France and the United States only. d. none of the choices.

a. all of the signatories of the Berne Convention.

Shippers Warehouse initiates a suit against Trans-State Trucking (TST) by filing a complaint. If TST files a motion to dismiss, the firm is asserting that: a. even if the facts in the complaint are true, TST is not legally liable. b. the facts in the complaint are not true. c. if the facts are true, Shippers Warehouse has a right to judicial relief. d. even if TST is legally liable, Shippers Warehouse cannot prove it.

a. even if the facts in the complaint are true, TST is not legally liable.

Ovid files a suit against Portia, alleging that she failed to pay him for goods shipped in response to an e-mail order. Portia denies the charge. If her e-mail order exists, it is: a. evidence. b. a deposition. c. an interrogatory. d. discovery.

a. evidence.

According to the theory of corporate social responsibility, any decision by the management of Precision Processing Corporation should consider how a proposed action may affect only the: a. firm's officers, shareholders, and suppliers, as well as the community, or society as a whole. b. firm's suppliers, the community, or society as a whole as well as the news media and local government. c. firm's officers and shareholders. d. firm's shareholders.

a. firm's officers, shareholders, and suppliers, as well as the community, or society as a whole.

In the case of Sales Corp. v. Transport Co., the court may rule contrary to a precedent if the court decides that the precedent: a. is incorrect or inapplicable. b. is not in line with the judge's personal values. c. would not bring about the result the judge prefers. d. would lead to unintended consequences.

a. is incorrect or inapplicable.

Phoenix Inc. is a publisher. Phoenix uses a logo featuring a bird rising from a flame to identify its publications. The publications are printed in a unique process that includes a 3-D printer. Phoenix could most likely obtain trademark protection for its: a. logo. b. printer. c. printing process. d. publications.

a. logo.

The Montana legislature enacts a state law that violates the U.S. Constitution. This law can be enforced by: a. no one. b. the state of Montana only. c. the federal government only. d. the United States Supreme Court only.

a. no one.

Beverly creates a website to post threatening messages about celebrities. Under the First Amendment, these messages are most likely protected: a. none of the time. b. all of the time. c. only if the threats can be verified. d. only if there are no accompanying ads.

a. none of the time.

Common law rules develop from: a. principles underlying judges' decisions in actual controversies. b. statutes enacted by Congress and the state legislatures. c. uniform laws drafted by legal scholars. d. regulations issued by administrative agencies.

a. principles underlying judges' decisions in actual controversies.

In a suit against Karen, Luke obtains an injunction. This is: a. principles underlying judges' decisions in actual controversies. b. statutes enacted by Congress and the state legislatures. c. uniform laws drafted by legal scholars. d. regulations issued by administrative agencies.

a. principles underlying judges' decisions in actual controversies.

Petro Energy Corporation expresses opinions on political issues through its financial contributions to political action committees and other groups. Under the First Amendment, Petro's "expression" is most likely: a. protected. b. discouraged. c. prohibited. d. prescribed.

a. protected.

Jared claims that a Kentucky state statute infringes on his "substantive due process" rights. This claim focuses on: a. the content of the statute. b. procedures used to make decisions to take life, liberty, or property. c. the treatment of similarly situated individuals. d. the steps to be taken to protect Orin's privacy.

a. the content of the statute.

Lake City enacts an ordinance that bans the distribution of all printed materials on city streets. Mackensie opposes the city's latest "revenue-enhancing" measure and wants to protest by distributing handbills. In her suit against Lake City, a court would likely hold the ban on printed materials to be: a. unconstitutional under the First Amendment. b. unconstitutional under the commerce clause. c. constitutional under the First Amendment. d. not subject to the U.S. Constitution.

a. unconstitutional under the First Amendment.

Organos Ltd. traffics in nutritional supplements that are marketed as genuine, trademark-branded products when in fact they are counterfeit. This is a crime: a. under all circumstances. b. only if the counterfeits have negative effects on legitimate businesses. c. only if the counterfeits present serious public health risks. d. under no circumstances.

a. under all circumstances.

A precedent is: a. a lawsuit in which a number of persons join together. b. a court decision that furnishes an example for deciding subsequent cases involving similar or identical facts or principles. c. the fundamental procedure by which the government exercises its authority. d. the chief executive officer of the United States.

b. a court decision that furnishes an example for deciding subsequent cases involving similar or identical facts or principles.

Pete, a broker, advises Ollie to invest in Rocky Road Inc. When the share price of Rocky's stock decreases, Ollie accuses Pete of fraud, claiming reliance on Pete's advice. The reliance that gives rise to liability for fraud requires: a. a threat of physical force. b. a misrepresentation of fact knowing that it is false. c. puffery. d. a statement communicated to at least one person other than the plaintiff.

b. a misrepresentation of fact knowing that it is false.

Wendy works as a weather announcer for a TV station under the character name Weather Wendy. Wendy can register her name as: a. none of the choices. b. a service mark. c. a trade secret. d. a trade name.

b. a service mark.

Sara files a suit in a state court against Tech Innovations Inc. The parties are allowed to file litigation-related documents with the court online. This is: a. online dispute resolution. b. an electronic court filing system. c. a cyber court. d. electronic discovery.

b. an electronic court filing system.

Congress enacts the Ad Restriction Act (ARA) to limit advertising in certain circumstances. The ARA will be considered valid if it directly advances a substantial government interest: a. and goes further than necessary to ensure full coverage. b. and goes no further than necessary to achieve its objective. c. and the parties affected by it can elect how "far" to go in applying it. d. without regard to how "far" it goes.

b. and goes no further than necessary to achieve its objective.

Kari and Lillian, who are citizens of Mississippi, are involved in a case related to the adoption of their child. Over this case, Mississippi state courts have: a. no jurisdiction. b. exclusive jurisdiction. c. concurrent jurisdiction with other state courts. d. concurrent jurisdiction with federal courts.

b. exclusive jurisdiction.

When deciding to engage in corporate social responsibility, a key factor when selecting activities is: a. whether the corporation is required to do the social activity by law. b. how the social activity relates to the business activities of the corporation. c. whether the activity will result in short-term profit increases. d. how much free publicity the corporation will get from the social activity.

b. how the social activity relates to the business activities of the corporation.

Hal, a resident of Illinois, owns a warehouse in Indiana. A dispute arises over the ownership of the warehouse with Jack, a resident of Kentucky. Jack files a suit against Hal in Indiana. Regarding this suit, Indiana has: a. no jurisdiction. b. in rem jurisdiction. c. in personam jurisdiction. d. federal jurisdiction.

b. in rem jurisdiction.

Gargantua Equipment Corporation registers its trademark as provided by federal law. This registration gives notice that the mark belongs exclusively to Gargantua. This notice is: a. limited to Gargantua's market. b. national. c. limited to Gargantua's home state. d. limited to those who have actual notice of it.

b. national.

Marco is harmed when Nell defames him. If Marco brings a successful tort action against Nell, he may be awarded general damages to compensate him for: a. all of the choices. b. nonmonetary aspects of the harm suffered, such as loss of reputation. c. monetary losses, such as lost wages and benefits. d. the defendant's reckless disregard of the effect on the life of another.

b. nonmonetary aspects of the harm suffered, such as loss of reputation.

Like most successful companies, Phones Inc. has trade secrets. The law protects those secrets if the information is: a. not revealed to outside parties. b. of value to a competitor. c. cataloged by the company as "confidential." d. useful and is in fact used by the company.

b. of value to a competitor.

George burns a U.S. flag in his backyard. He films the activity and posts the video on YouTube.com. George's conduct is most likely: a. given strict scrutiny under the equal protection clause. b. protected by the First Amendment. c. subject to reasonable restrictions under the due process clause. d. expressly prohibited by the Constitution.

b. protected by the First Amendment.

In a phone call to Lou, Mia makes statements about Nye that injures Nye's reputation. If Nye can prove all of the elements of defamation and Mia cannot assert a sufficient defense, Mia is most likely liable for: a. contempt. b. slander. c. malice. d. libel.

b. slander.

Georgia 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. Price-Lo Stores files a suit to block the law's enforcement. The court would likely hold that this law violates: a. the supremacy clause. b. the establishment clause. c. the free exercise clause. d. no clause in the U.S. Constitution.

b. the establishment clause.

Caryn is faced with making a business decision. As she thinks about the problem, she feels that there is no easy answer. She continues to think about what is making her uncomfortable about the situation before brainstorming possible solutions. If Caryn is using the IDDR approach to decision making, she is engaged in: a. the review step. b. the inquiry step. c. the decision step. d. the discussion step.

b. the inquiry step.

Berry Good LLC registers its trademark with the U.S. Patent and Trademark Office, and uses it to market a distinctive line of ice cream products. Crabapple Inc. uses the mark without Berry's consent to sell imitation frozen desserts. Berry has a cause of action against: a. all of the choices. b. consumers who buy Crabapple's desserts. c. Crabapple. d. the U.S. Patent and Trademark Office.

c. Crabapple.

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: a. marketing manager. b. accounting and finance manager. c. all of the choices. d. human resources manager.

c. all of the choices.

Federico and Gwen are involved in a court proceeding to enforce a right. This is: a. stare decisis. b. a remedy. c. an action. d. an injunction.

c. an action.

Hilo tells the Internal Revenue Service that Jon "cheated on his taxes." This can lead to Hilo's liability for defamation if the statement is: a. true. b. contemptuous. c. false. d. an opinion.

c. false.

Nick, the chief executive officer of On/Off Inc., a website for short rants, claims that certain government actions infringe on rights guaranteed by the Bill of Rights. Most of these guarantees have been held to limit: a. only the conduct of the states. b. only the claims of individuals. c. federal and state actions. d. only the power of the federal government.

c. federal and state actions.

DIY, a retail hardware store, must use reasonable care on its premises to warn its invitees of: a. no dangers. b. all possible dangers. c. hidden dangers. d. dangers about which the business does not, or should not, know.

c. hidden dangers.

Product Sales Inc. adheres strictly to the goal of maximizing profits. Even so, Product Sales will benefit from ethical behavior: a. if its owners are happy with the revenue. b. if it efficiently allocates its scarce resources. c. if customer service is good. d. under no circumstances.

c. if customer service is good.

When adopting duty-based ethics, corporations often demonstrate the duties they owe: a. in the biographies of corporate leaders. b. through required government disclosure forms. c. in their mission statements and strategic plans. d. by adopting a corporate religion.

c. in their mission statements and strategic plans.

Don interferes with the business interests of Erin in a way not permitted by law, and Erin's business is harmed as a result. To be liable to Erin for the commission of an intentional tort, Don must have: a. acted with an evil motive. b. intended to harm Erin's business. c. intended to commit the act. d. acted with a harmful motive.

c. intended to commit the act.

To benefit from international trade, individual nations agree to be governed by: a. the laws of other nations. b. none of the choices. c. international law. d. the Uniform Commercial Code.

c. international law.

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: a. the President. b. any state. c. none of the choices. d. Congress.

c. none of the choices.

With respect to what society will tolerate, a company's compliance with the law, and no more, is: a. the only ethical level. b. irrelevant. c. the lowest ethical level. d. the highest ethical level.

c. the lowest ethical level.