BUS LAW Midterm Review 1

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In the common law system of the United States, a crime is defined as:

A) A private wrong that necessitates litigation between the victim and the perpetrator. B) Any act prohibited by the government and made punishable through imprisonment or fines. C) Litigation where the injured party sues to recover compensation for the damages and injury sustained as a result of the defendant's wrongful conduct. D) Interstate compacts and the rules and regulations of federal and state agencies. B

The actual act when committing a crime is called

A) Actus reus. B) Mens rea. C) The M'Naghten test. D) Malice aforethought. A

Administrative Agencies must

A) Always adhere to the constitution in all matters B) Always adhere to their enabling statues in all matters C) Always follow the administrative procedures act (APA) D) All of the above D

The Act of State Doctrine requires

A) American courts to get involved with all matters of international law B) American courts to abstain from cases in which a court order would interfere with the president or congress to conduct foreign affairs C) American courts to submit to international laws as part of all treaties D) federal courts to supersede state courts in diversity matters B

A contract that exists because of the two parties actions despite a lack of formal agreement is termed

A) An implied contract B) Voidable C) Express contract D) statutory A

Which of the following is a remedy that can be obtained from a court of equity? Correct!

A) An injunction B) Monetary Damages C)Administrative action D) Stare decisis A

Invasion of privacy does NOT include

A) Appropriation. B) Intrusion. C) Public disclosure of private facts. D) Defamation D

Express contracts and implied contracts:

A) Are both genuine contracts. B) Are equally enforceable. C) Are not really contracts D) Two of the above, (a) and (b) D

In which situation could a case be heard at the state or federal level?

A) Art, a citizen of Nevada, who owns a rental house in California is sued by his California tenant for $1,000 B) Art, a citizen of Nevada, who owns a rental house in California is sued by his Nevada employer C) Art, a citizen of Nevada, who owns a rental house in California is sued by an Oregon driver for $250,000 stemming from a car accident allegedly caused by Art D) All these cases would only be heard in State court E) All of these cases would only be heard in federal court C

Bodily contact that is harmful or offensive can give rise to the tort of:

A) Assault B) Battery. C) Defamation. D) Appropriation. B

Bodily contact that is harmful or offensive can give rise to the tort of:

A) Assault. B) Battery. C) Defamation. D) Appropriation. B

In which situation is part of the discovery portion of the trial taking place?

A) Attorney John John conducts a deposition B) Attorney John John files a complaint in Superior Court C) Attorney John John participates in voir dire D) Attorney Mary Mary moves for a judgment NOV E) None of the above A

Josephine Student, irate with her grade, stands up and throws a calculator at her business law professor, he sees it, ducks, and the calculator breaks against the blackboard. Josephine committed

A) Battery B) Slander C) Assault. D) No tort because no one was injured C

Cal sprayed pesticide on his crops in a very careful manner on a windless day. Nevertheless, some of the pesticide spray fell on his neighbor's side of the fence and contaminated the cornmeal for the chickens. The chickens died and the neighbor sues. What is the likely result?

A) Cal is not liable because he was not negligent in his spraying operation. B) Cal is not liable because the neighbor assumed the risk of damage to the feed by placing chickens so close to his neighbor's property C) Cal is liable because spraying pesticides is an abnormally dangerous activity. D) Cal is not liable for the damage because of contributory negligence C

Carl Criminal threw a bomb into the office of his insurance agent intending to kill the agent because the company had disallowed his claim. The agent wasn't in the building, but the bomb seriously injured his secretary, who was working in the office.

A) Carl cannot be liable to the secretary for any torts because he did not intend to hurt her. B) The intent to harm the agent is transferred to the secretary who can sue Carl for her injuries, but there can be no criminal liability C) The intent to harm the agent is transferred to the secretary who can sue Carl for her injuries, and there can be criminal liability as well. D) Carl has committed the tort of intrusion. C

John agrees to paint Mary's garage for $800, this contract will be governed by

A) Common law B) uniform commercial code C) federal commerce law D) None of the above A

An answer during the pleadings portion of a trial:

A) Could contain denials, admissions and affirmative defenses B) A pleading that is a statement of the initial claim against the defendant. C) A judgment NOV D) A judgment against a defendant who fails to respond to a complaint. E) Contradicts a jury's decision A

The branch of public law that deals with public safety would include and would include the FAA and EPA would fall under:

A) Criminal law B) Administrative law. C) contract law D) Substantive law. B

The branch of private law that deals disputes between two individuals is called:

A) Criminal law. B) Administrative law. C) Constitutional law. D) Civil law. D

ABC Co made damaging statements about their competitors employee. The statements were true, but they were of a medical nature that only the employee and his doctor knew. ABC could be liable for

A) Defamation B) Disparagement C) Unfair Business Practices D) Invasion of Privacy D

How can a company in the US sell its goods overseas?

A) Direct Sales B) Indirect Sales C) Licensing D) Any or all of the answers shown D

When a company sells its products overseas for less than it costs to make the goods it is called

A) Dumping B) a tariff C) Expropriation D) Repatriation A

A jury determines issues___ and a judge determines issues of _______:

A) Evidence, law B) Law, evidence C) Law, fact D) Fact, law D

The tort of is a false communication, which injures a business's reputation and good name by disgracing the business and diminishing the respect in which it is held.

A) False light B) Intrusion C) Defamation D) Disparagement D

Exclusive federal jurisdiction includes:

A) Federal criminal prosecutions. B) Trademark and copyright cases. C) Issues involving State constitutions D) (a) and (b) above. E) All of the above D

What Constiutional principle allows one to criticize public officials?

A) Free Speech B) Equal Protection C) Due Process D) Eminent Domain A

Harms or injuries that are tortuous may be inflicted:

A) Intentionally. B) Negligently. C) Without fault. D) In all of the above ways. D

Business torts include:

A) Interference with contractual relations. B) Disparagement. C)Fraudulent misrepresentation. D) Interference, Disparagement and Fraud are all business torts. D

The oral examination of a witness under oath, before the trial

A) Interrogatory B) Request for admission C) A demand D) Deposition

Judicial review extends to:

A) Legislation. B) Acts of the executive branch. C) Decisions of inferior courts. D) All of the above D

Which of the following is not generally required in order to have a valid contract - for most contracts?

A) Mutual assent. B) A lawful purpose C) Consideration D) Writing D

The requirement that each party to a contract are capable of understanding the contract and can contract is known as:

A) Mutual assent. B) Consideration. C) Legality of object. D)Contractual capacity. D

Which of the following is NOT always necessary in order for a valid contract to be formed?

A) Mutual assent. B) Legality of purpose. C) Consideration. D) Equity. E) None of the above D

Much of federal, state and local law in this country have been established by, which people label as the "fourth branch of government," because they possess tremendous power.

A) Newspapers. B) Administrative agencies. C)The courts. D) Congress.

Which one of the following is NOT one of the torts included within invasion of privacy?

A) Nuisance. B) Intrusion. C) Appropriation. D) False light. A

Workplace safety standards are set by

A) OSHA B) the IRS C) state workers compensation boards D) appellate courts A

Generally, State A may exercise long arm jurisdiction over a defendant located in State B if the defendant:

A) Once resided in State A. B) Uses a product produced in State A. C) Made a contract in State A D) Has relatives in State A C

Filing a complaint for a contract breach would fall under what type of laws?

A) Procedural, civil, private B) Substantive, civil, private C) Substantive, criminal, public D) Procedural, criminal, private A

A person who makes a promise is a/an:

A) Promisor. B) Promisee. C) Offeror. D) Executor. A

When the defendant's property located within a state is seized to obtain payment of a judgment from a court from another State that is unrelated to the property being seized, the jurisdiction over the property is known as jurisdiction.

A) Quasi in rem B) In personam C) In rem D) Forum non conveniens A

Legislatures initiate laws that are called:

A) Restatement of law B) Executive orders C) Common Law D) Statutes D

Mary is leaving the Civic Center and notices several gang members blocking one of the exits, she later sues for false imprisonment: Correct!

A) She will lose if there was another exit she could have safely used. B) She will lose because she was not harmed by the confinement. C) She will win even if there was another way out because she was, in effect, being confined D) She will win because they were blocking her passage to her car. A

What laws take precedence over state common law?

A) Statue Statutory Law B) Federal Statutes C) Federal Common Law D) All of the above D

The category of law that creates, defines and regulates legal rights and obligations is known as:

A) Substantive law. B) Procedural law. C) Constitutional law. D) Criminal law.

The category of law that ensures a fair process in applying the law:

A) Substantive law. B) Procedural law. C) Constitutional law. D) Criminal law. B

The three distinct and independent branches of the United States government are:

A) The Executive branch, the House of Representatives and the U.S. Senate. B) The federal judiciary, the House of Representatives and the U.S. Senate. C) The federal judiciary, the Congress and the Executive branch. D)The State government, the Congress and the Executive branch. c

In which situation is it likely that defamation of character has taken place?

A) The Times publishes Arnold Shwarzenegger's grades from his community college days - they have never been publicly released B) A drug dealer is interviewed by the Times and truthfully recounts how he sold the singer Britney Lohan drugs C) John falsely tells IBM that Mary, his former girlfriend who is applying for a job there, was charged with petty theft D) An editorial writer for the Times writes in an opinion column that Jeb Bush is an intellectual lightweight C

Pre trial discovery includes

A) The complain B) depositions C) the answer D) voir dire B

Part of the pleadings portion of the trial includes

A) The complaint B)depositions C) interrogatories D) voire dire A

The procedural stage of a lawsuit after the pleadings but before trial is:

A) The peremptory challenge stage B) The pre-trial discovery stage. C) The special verdict stage. D) The offer of proof stage. B

Diversity of citizenship would not take place if:

A) The plaintiffs are all citizens of a state or states different from the state or states of which B) A foreign country brings an action against citizens of the United States. C) The controversy is between citizens of the United States and citizens of a foreign D) if the plaintiff and defendant reside in the same state. D

Diversity of citizenship occurs when:

A) The plaintiffs are all citizens of a state or states different from the state or states where the defendants reside B) The defendant and plaintiffs are from different counties in the same state. C) The controversy is between two companies in California D) All of the above. A

Intentional harm the reputation of others includes the tort of:

A) Trespass to real and personal property. B) Nuisance. C) Defamation. D) Battery. C

Breaking a speeding law and hitting a pedestrian in a crosswalk and being convicted of reckless driving could lead to an issue of negligence per se for the driver of the car

A) True B) False A

Actual malice pertains to public figures, not private figures in a defamation lawsuit

A) True B) False A

The legal principle, which deals with which court one will have a case heard is:

A) Venue B) Jurisdiction C) Substantive Law D) Stare Decisis A

The legal principle, which gives the court the power and authority to hear and decide a given case

A) Venue. B) jurisdiction. C) voir dire D) Stare decisis. B

In which case is a plaintiff most likely to sue under strict liability?

A) Where the defendant is driving a car and someone was injured B) Where the defendant owns a zoo and a tiger escapes and someone was injured C) Where the defendant is playing football and someone was injured D) Where the defendant is alleged to have lied and someone's reputation was injured E) None of the above B

Assaulting and battering another individual could be

A) a crime B) a tort C) a crime or a tort but not both D) a crime and a tort D

If the USA stopped allowing Lockheed to sell jet parts to Russia it would be termed

A) a dumping action B) an import ban C) export controls D) subsidized ban C

Civil cases require what burden of proof?

A) a preponderance of the evidence. B) By the greater weight of the evidence. C) Beyond a reasonable doubt. D) Beyond shadow of a doubt. A

Charging a fee on certain imported goods is called

A) a tariff B) export policy C) dumping D) valuation A

The US prohibiting the sale of a specific product from Portugal in the USA is termed

A) a tax B) a tariff C) an export control D) Import Ban D

John Paul Juror, is called for jury duty and is selected for possible service on a jury, but he is wearing a tie the defendant considers unlucky, so the defense dismisses him without reason. This is an example of

A) a valid challenge for cause. B) a valid peremptory challenge. C) This is cannot be upheld. D) The plaintiffs attorney can have John serve by making an offer of proof to the judge. B

A summary judgment would take place

A) after the pleadings before discovery B) after the plaintiff has presented his or her case C) When discovery is completed D) None of the above C

Caroline signs a contract to work as a sales rep for Incellmed Corporation for a period of two years. The terms are spelled out in the contract agreement and both parties sign the document. This is a:

A) an article 2 contract of the UCC. B) a bilateral, express contract. C) an implied contract. D) a quasi contract. B

Accessing public records to determine an employee's property taxes is likely

A) an invasion of privacy B) only permissible if the employee consents C) permissible because the records are public D) only permissible with implied consent C

Putting Maryl Streep's picture on a box of Wheaties without her permission would be called:

A) appropriation B) defamation C) disparagement D) libel A

A store that leaves debris out in its aisle causing a customer to trip and be injured is an example of

A) assumption of risk B) compensatory damages C)negligence D) strict liability C

ABC Company maintains its own signs in its sales showroom. One of the signs falls from the wall, injuring a customer. What will likely be applied by the court?

A) battery B) res ipsa loquitor C) criminal negligence D) none of the above B

A spectator who is overcome by the heat at a college football game because he sat in the sun too long has been subjected to:

A) battery. B) Intervening forces. C)Superseding causes. D) Contributory negligence. E

Al posts a notice of reward to pay 50 dollars to the first person who finds his lost dog. Annie finds the dog and returns it to Al demanding payment. This is an example of

A) bilateral contract B) unilateral offer C) quasi contract D) unilateral contract B

In an instance where a plaintiff is found to be partially at fault and receives a reduced award in a civil suit, it is likely that what was found by the court?

A) comparative negligence B) contributory negligence C) negligence D) an intentional tort A

Common law helps provide:

A) consistency and fairness B) legislators guidance in drafting administrative law C) a separation of powers D) None of the above A

A federal agency that adopts a rule that is unconstitutional will find the rule to be

A) enforced for public safety. B) applicable only at the federal level. C) selectively enforceable. D) Unenforceable D

A court declaring a statute unconstitutional

A) falls under the doctrine of judicial review B) would exceed its authority C) could find its ruling overturned by the executive branch D) is limited to federal laws and administrative agency actions A

A voidable contract could take place because of:

A) fraud B) misrepresentation C) both of the above D) None of the above C

The doctrine of stare decisis applies to

A) hearings before the senate B) safety inquiries C) court decisions D) None of the above. C

Al offers to cut May's lawn for $20, she says ok - and Al promises to come weekly and cut the lawn, and May promises to pay each Saturday. This is an example of

A) implied unilateral contract B) express unilateral contract C) implied bilateral contract D) express bilateral contract D

If you sued Congressman Smith because he shared your tax records with one of his constituents, you would be suing for

A) invasion of privacy B) defamation C) disparagement D) none of the above A

A personal property trespass

A) involves crossing onto someone's land without permission B) is a nuisance C) could involve hiding someone's car keys so they cannot be found for an appreciable time D) cannot be done by a minor C

Paying a foreign official to expedite performance of a routine function

A) is bribery B) is legal in some cases as a grease or facilitating payment C) violates the foreign corrupt practices act D) cannot be made by an American B

Smalltown, located in a border state seems to favor Caucasians over Latinos in hiring. The courts will review the practice using:

A) minimal scrutiny B) intermediate scrutiny C) strict scrutiny D) Supremacy clause scrutiny C

A contract requires what for enforceability?

A) mutual assent. B) consideration. C) legality. D) capacity. E) all of the above

A contract that is in the middle of being performed is called

A) negotiated B) executory C) bilateral D) executed B

A contract is completed when it is

A) negotiated B) fully performed by both sides C) bilateral D) only when both parties sign a release B

Which of the following is an absolute defense to a defamation claim?

A) opinion B) defense of reputation C) assumption of risk D) Truth D

Unjust enrichment is part of

A) promissory estoppel B) Charitable subscription C) Quasi-contract D) none of the above C

Bob, who lives at 123 Mayberry saw gardeners show up at his house and begin cutting his lawn. He did not hire the gardeners for the job, but did know his neighbor, Nan, had hired them. His duty to stop the gardeners was:

A) quasi-contractual B) criminal C) non-existent D) Administrative A

The UCC pertains to the sale of

A) real property B) securities C) Goods D) service agreements

Administrative agencies include what in their activities:

A) rulemaking B) interpretation C) enforcement D) All of the above D

Voir Dire is the process of

A) sentencing in court B) jury selection C) speaking the opening statement D) engaging in closing arguments B

A business that produces dangerous chemicals likely will be subject to

A) strict liability B) recklessness if they showed due care and caution in the business C) waivers of constitutional protections D) None of the above A

Playing loud heavy metal rock music in a small storefront area that discourages customers to go to the business next to yours could give rise to:

A) trespass B) conversion C) nuisance D) invasion of privacy C

ABC approached XYZ and encouraged it to become a supplier, knowing XYZ would be unable to fulfill its five year agreement with Masterson Industries to be their supplier. Masterson is a direct competitor of ABC's. ABC could be sued for:

A) unfair competition B) interference with business relations C) disparagement D) nuisance B

Janet Juror is called for jury duty and is selected for possible service on a jury. However, when the defendant's attorney asks her if she thinks the defendant is guilty, Janet says "Yes." Janet will likely be dismissed under a

A) valid challenge for cause. B) peremptory challenge. C) There are no valid challenges in this example. D) The plaintiff's attorney will have Janet serve by making an offer of proof to the judge. A

In international agreements, choice of forum means

A) where disagreements will be resolved B) where the parties are located C) the type of notice required for a breach D) None of the answers shown A

Engaging in ultrhazardous activities creates (legally):

A)Strict liability risk B) Entreprenuerial risk C) Investment risk D) Intentional risk A

A default judgment:

A) A legal pleading that contains denials, admissions, affirmative defenses and B) A pleading that is a statement of the initial claim against the defendant. C) An assertion that even if the plaintiffs allegations are true, the plaintiff would not be D) A judgment against a defendant who fails to respond to a complaint. D

In which case is a plaintiff most likely to sue for invasion of privacy?

A) A newspaper reports she has been arrested B) A school official releases grades to a business and the student has not approved the release C) the student's property tax records are found online D) Another student refers to her as a "grinding idiot." E) None of the above A)


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