Chapter 3 Business Law

In diversity of citizenship cases, if a case involves multiple plaintiffs with separate and distinct claims, _____. A. at least one of the claims must be approved by the Supreme Court B. each claim has to qualify for a writ of certiorari C. each claim must satisfy the jurisdictional amount D. only one claim has to satisfy the jurisdictional amount E. the sum total of all claims must be lower than the jurisdictional amount

C

A petition for a writ of certiorari is __________. A. the underlying principle of a case B. the process of finding out the facts of a case C. an oath administered to a witness requiring him to speak the truth D. a request by the losing party in the court of appeals for permission to file an appeal with the U.S. Supreme Court E. a plea by the winning party in the court of appeals wherein the party agrees not to contest the charges against the defendant

D

Courts have held that the existence of diversity of citizenship is determined by the citizenship of the __________. A. jurors involved in a case B. judges deciding a case C. lawyers involved in a case D. parties in a case E. people affected by the defendants of a case

D

In most states, a jury's decision must be unanimous because __________. A. it reduces the number of mistrials in both criminal and civil cases B. it reduces the number of cases that are appealed by a losing party in a higher court C. it is believed that it is a foolproof approach as the right of trial by jury is not guaranteed in both criminal and civil cases D. it is believed that the truth is more nearly to be found if the jury acts only on one common conscience E. it is believed that jurors are not easily swayed emotionally by lawyers as they are qualified to distinguish fact from fiction

D

In the context of state courts, which of the following statements is true of reviewing courts? A. They only handle cases that cannot qualify for a writ of certiorari. B. They only render decisions that are consistent with the philosophy of judicial restraint. C. There has to be at least nine judges in a reviewing court. D. They are essentially concerned with questions of law. E. They usually handle diversity of citizenship cases.

D

Strict constructivism is also known as _____. A. judicial liberalism B. judicial activism C. judicial review D. judicial abstention E. judicial formalism

D

. In the federal system, the U.S. constitution gives the power to appoint federal judges, including Supreme Court justices, to __________. A. the president B. the federal district court judges C. the U.S. House of Representatives D. Congress E. the vice president

A

Diversity of citizenship requires that __________. A. all plaintiffs be citizens of different states from all defendants B. all defendants qualify for ratio decidendi C. all plaintiffs obtain a writ of certiorari from the Supreme Court D. all defendants be citizens of the same state E. all plaintiffs be citizens of the same state

A

If a state case does not involve a federal question, _____. A. the decision of the highest state court is not subject to review by the Supreme Court B. it falls under the diversity of citizenship jurisdiction C. the judgment delivered can qualify for a petition for a second review by the Supreme Court D. it has to be handled by a small-claims court E. the decision of a state trial court is final and not subject to review

A

In civil cases, the right to trial by a jury is preserved in suits at common law when the amount in controversy exceeds _____. A. $20 B. $2,500 C. $500 D. $75 E. $2,000

A

Judges who identify with _____ give great deference to the political process. A. judicial restraint B. judicial activists C. judicial realists D. judicial conservatives E. strict activistsA

A

Judicial review is the power of __________. A. the courts to review laws passed by the legislative body and to declare them to be unconstitutional B. a legislative body to pass federal statutes that invalidate the actions by the president or the Congress C. a district court to overrule a lower court decision D. the legislative branch to enforce or not enforce judicial decisions E. the courts to create laws

A

One of the reasons U.S. Congress provides for diversity of citizenship jurisdiction is to __________. A. guard against state court bias against the nonresident party in a lawsuit B. enable the existence of attorney-client privilege to all citizens of the United States C. restrict the number of petitions for writs of certiorari by the nonresident party in a lawsuit D. restrict the number of appeals to the U.S. Supreme Court E. guard against the abuse of a small-claims court by the resident party in a lawsuit

A

Ratio decidendi refers to _____. A. the underlying principle of a case B. stare decisis C. the narrow tailoring of judgment D. justifying the amount of a verdict in relation to the injury E. judicial activism

A

The members of the U.S. Supreme Court are called _____. A. justices B. magistrates C. judges D. advocates E. jurors

A

The rules of evidence protect confidential client communications to a lawyer to __________. A. encourage full disclosure by clients B. make it easier for people to file a petition for a writ of certiorari C. enable lawyers to communicate effectively with judges D. qualify corporations as citizens of more than one state E. insulate the attorney from prosecution for criminal acts

A

Those who believe that the power to exercise judicial review should not be used except in unusual cases are said to believe in _____. A. judicial restraint B. judicial activism C. voir dire D. judicial relativism E. res judicata

A

Which of the following Amendments to the Constitution guarantee the right of trial by jury in both criminal and civil cases? A. The Sixth and Seventh Amendments B. The First and Twelfth Amendments C. The First and Seventh Amendments D. The Second and Fifth Amendments E. The Ninth and Fourteenth Amendments

A

Who among the following is the current Chief Justice of the U.S. Supreme Court? A. John Roberts B. Stephen Breyer C. Samuel Alito D. Sonia Sotomayor E. Elena Kagan

A

Writs of certiorari are granted primarily in cases __________. A. of substantial federal importance B. where the value in controversy is more than $1,000,000 C. of arbitration awards between two disputing parties from the same state D. of mediation outcomes between two disputing parties from the same state E. where judicial review of contract-based arbitration between an employee and a private firm is required

A

. Which of the following statements is true of the Fourth Circuit Court of Appeals? A. It only handles cases that cannot qualify for a writ of certiorari. B. It tends to render decisions that are consistent with the philosophy of judicial restraint. C. It only accepts appeals if a case involves a large amount of money. D. It reviews and retries judicial errors charged against a state court. E. It preapproves all appeals that go to the Supreme Cour

B

. Which of the following statements is true of the roles of a lawyer in U.S. courts? A. A lawyer cannot testify against a client unless called to do so at a trial. B. A lawyer is often actively involved in the personal decisions of a client. C. A lawyer is obliged to reveal everything that is material to a case being tried. D. A lawyer's first duty is to a client. E. A lawyer applies the law to the facts.

B

A key provision of the Patient Protection and Affordable Care Act requires __________. A. Americans to limit their number of petitions for a writ of certiorari in cases related to health care B. most Americans to maintain minimum essential health care coverage C. all Americans to make a shared responsibility payment to obtain health insurance D. a decrease in the number of Americans covered under Medicaid E. all Americans to buy their medical insurance exclusively from government agencies

B

Because the litigants are entitled to only _____ in the court of appeals, a subsequent review by the U.S. Supreme Court must be obtained through a petition for a writ of certiorari to the Supreme Court. A. two reviews B. one review C. three reviews D. four reviews E. five reviews

B

For purposes of diversity jurisdiction, a corporation is a citizen of the state of incorporation and also a citizen of __________. A. any state where its stakeholders live B. the state in which it has its principal place of business C. the state where its chief executive officer lives D. the state where most of its employees live E. any state that the corporation declares as being its hometown

B

Justice Benjamin Cardozo stated that if the answer to a case is not clearly established by statute or by unquestioned precedent, a judge must first extract from the precedents the _____. A. obiter dicta B. ratio decidendi C. voir dire D. res judicata E. writ of ceritorari

B

Lawsuits begin at the _____ level. A. appellate court B. trial court C. Supreme Court D. intermediate reviewing court E. state supreme court

B

The National Federation of Independent Business v. Sebelius involves legal challenges to the __________. A. Trafficking Victims Protection Act B. Patient Protection and Affordable Care Act C. Global Anti-Semitism Review Act D. Sarbanes-Oxley Act E. Jobs and Growth Tax Relief Reconciliation Act

B

Those who think that the power to exercise judicial review should be used whenever the needs of society justify its use believe in _____. A. judicial functionality B. judicial activism C. judicial extension D. judicial abstention E. judicial absenteeism

B

When the U.S. Supreme Court reviews petitions for a writ of certiorari, the writ is granted if _____ of the nine justices vote to take a case. A. five B. four C. two D. seven E. eight

B

Which of the following causes problems in determining when diversity of citizenship exists in cases involving business corporations? A. The fact that business corporations usually settle their cases with a small-claims court B. The fact that business corporations are frequently incorporated in one state and have their principal place of business in another state C. The fact that business corporations are allowed to forego their right to be classified as a person D. The fact that business corporations only fall under the jurisdiction of a small-claims court that considers businesses as persons E. The fact that business corporations always deal with amounts that are higher than the jurisdictional amount

B

Which of the following is most likely to be a federal question case? A. A case that has the United States as a party B. A case that is based on issues arising out of the U.S. Constitution C. A case that only deals with issues where the amount of money exceeds $9,000,000 D. A case that is solely based on certain suits between citizens of different states E. A case that solely deals with disputes between a citizen and a corporation

B

Which of the following statements is true of small-claims courts? A. They have general jurisdiction. B. They handle much of the litigation between businesses and its customers. C. They have complex procedures. D. They only handle cases where the amount in controversy is less than $2,000. E. They only handle cases that qualify for a second review.B

B

Which of the following statements is true of trial judges of U.S. courts? A. They cannot apply substantive rules of law to decide a case. B. They are responsible for finding the facts in cases without a jury. C. They are responsible for reviewing petitions for a writ of certiorari. D. Members of the U.S. Supreme Court are known as trial judges. E. They are not allowed to apply constitutional limitations in trials without a jury.

B

Josh crashes his car into Sheila's house. Sheila is severely injured and suffers $95,000 worth of medical and property damages. She believes that the accident was Josh's fault and files a lawsuit at a state trial court. What would have to be different for Sheila to be able to sue Josh in a federal court? A. The amount of damages incurred by Sheila must be less than $75,000. B. Josh must not have severely injured Sheila. C. Josh and Sheila must live in different states. D. Sheila must petition her elected officials. E. Josh must have been intoxicated during the accident.

C

The _____ is the trial jury that returns a verdict in both criminal and civil cases. A. grand jury B. appellate jury C. petit jury D. federal jury E. preemptive jury

C

When a state trial court has general jurisdiction, _____. A. it cannot try criminal cases B. it can issue writs of certiorari to the general population C. it has the power to hear any type of case D. it should have a jury present in both civil and criminal cases E. it has the power to review judicial errors charged against a federal court

C

Writs of certiorari are granted primarily in cases __________. A. where the value in controversy is more than $50 million B. where the arbitration awards are not accepted by both disputing parties C. where there is an obvious conflict between decisions of two or more U.S. Circuit Courts of Appeal in an important area of the law that needs clarification D. where the judge in the original state trial court has been removed from the bench for reasons of misconduct or for other unethical reasons that can be proved E. where the attorneys on both sides of a case are well known to the justices

C

_____ is a court's power over the issues involved in a case. A. Ratio decidendi B. Judicial abstention C. Subject matter jurisdiction D. Judicial activism E. Res judicata

C

_____ of the U.S. Constitution provides that judicial power be vested in the Supreme Court and such lower courts as Congress may create. A. The due process clause B. The First Amendment C. Article III D. The Fifth Amendment E. Article VII

C

Which of the following statements is one of the criticisms of the jury system in the United States? A. Juries only apply substantive rules of law to decide cases. B. Juries cannot be used in criminal cases. C. Jurors develop voir dire to elicit attitudes and experiences. D. Jurors vote their prejudices. E. Juries cannot be used in civil cases when the amount in controversy is below $2,000.

D

Which of the following statements is true of the Supreme Court's use of the power of judicial review? A. It has to exercise the power of judicial review more than once per presidential cycle. B. It has to exercise the power of judicial review at least once a year. C. It applies its power of judicial review only when the country faces war. D. It rarely exercises the power of judicial review. E. It uses the power of judicial review only when a majority of the justices are strict constructionists.

D

Which of the following statements is true of the role of judges in U.S. courts? A. They determine the facts from conflicting evidence in a jury trial. B. They present evidence to a jury. C. They give no deference to the facts found by a jury. D. They apply the law to the facts of a case. E. They campaign for reelection.

D

_____ provide the details concerning processes to be followed in federal court litigation. A. Article III and Article IV of the U.S. Constitution B. The First and Second Amendments to the U.S. Constitution C. The Sixth and Seventh Amendments to the U.S. Constitution D. The Federal Rules of Civil Procedure E. The Federal Rules of Evidence

D

. Small-claims courts __________. A. have high court costs B. have very formal procedures C. usually have complex procedures D. have the power to hear any type of case as they have general jurisdiction E. usually do not require the services of a lawyer

E

A lawyer's first duty is __________. A. to protect his or her reputation B. to make money. C. to defeat the opposing lawyer D. to apply the law to the facts of a case E. to the administration of justice

E

Essentially, the judicial power of the federal courts extends to matters involving __________. A. correction of judicial errors charged against a state trial court B. disputes among citizens of the same state C. erroneous rulings made by arbitrators in disputes involving interstate commerce D. lack of diversity of citizenship E. questions of federal law

E

How many Courts of Appeal have been created by Congress in the United States under its constitutional authorization? A. 50 B. 51 C. 25 D. 10 E. 13

E

James wrecks Carl's house in a motor vehicle accident. Carl incurs $180,000 in property damages. To recover his losses, he wants to sue James. In this scenario, Carl is most likely to file the initial lawsuit in _____. A. traffic court B. a state appellate court C. a federal district court D. the U.S. Supreme Court E. a state trial court

E

Which of the following statements is true of the federal district courts? A. They are the appellate courts of the federal judicial system. B. There are only 12 such courts in the United States. C. These courts do not have the authority to impanel juries. D. They lack subject matter jurisdiction over diversity of citizenship cases. E. They cannot retry judicial errors charged against a state court.

E

Which of the following statements is true of the role of jurors in U.S. courts? A. They determine the rules of law relevant to a case. B. They present the evidence and arguments to the judges. C. They apply the law to the facts of a case. D. They apply constitutional limitations and guarantees. E. They determine the facts from conflicting evidence.

E

Which of the following statements is true of trial by jury? A. All states require a jury's decision to be unanimous in civil cases where the amount in controversy exceeds $75,000. B. Juries are only used in criminal cases. C. A jury has to consist of 12 persons. D. Juries are used in a large percentage of all cases. E. The right to trial by a jury is preserved in suits at common law in civil cases when the amount in controversy exceeds $20.

E

_____ refers to the power of a court, at the state or federal level, to hear a case. A. Judicial activism B. Res judicata C. Judicial restraint D. Voir dire E. Jurisdiction

E