Legal Environment of Business

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An inmate in a state prison claims his rights under the United States Constitution prohibiting cruel and unusual punishment are being violated by the state correctional facility. The court with jurisdiction in this case is: a. a federal court, based on federal question jurisdiction. b. a federal court, based on diversity jurisdiction. c. only a state court, based on location of the correctional facility. d. nonexistent, as prisoners lose the right to sue.

A

Civil law regulates: a. rights and duties between persons in our society. b. behavior so threatening that society outlaws it altogether. c. etiquette. d. criminal behavior.

A

Fundamental rights include all EXCEPT the right to: a. drive. b. vote. c. free speech. d. travel.

A

The categorical imperative test consists of: A. individuals making ethical decisions with an eye toward potential consequences if everyone in society acted similarly. B. individuals making ethical decisions with an eye toward potential consequences if only some in society acted similarly but not all. C. individuals making ethical decisions with an eye toward potential consequences if no one else in society acted similarly. D. individuals making ethical decisions with an eye toward potential consequences if most in socie-ty benefit even if some in society are harmed.

A

The federal judicial branch of the U.S. government: a. interprets statutes. b. passes statutes. c. issues executive orders. d. creates administrative agencies.

A

The power of federal courts to declare a statute or governmental action unconstitutional is called: a. judicial review. b. judicial activism. c. judicial restraint. d. judicial intervention.

A

Tina, speaking at a political rally for a candidate for Congress, stated that the current Representative was behind the times, was racist, and was crazy. Are her statements protected under the First Amendment to the Constitution? a. Yes. Political speech receives an especially high degree of protection. Such speech may not be barred even when it is offensive or outrageous as long as it is not intended and likely to create imminent lawless action. b. Yes. Political speech is protected no matter what the content because the Framers of the Constitution were primarily concerned with enabling democracy to function, and open political arguments are encouraged.. c. No. Speech that is offensive or outrageous cannot receive Constitutional protection. d. No. The First Amendment does not protect political speech.

A

Tony raped Jane in the parking lot of Joe's Pub. The district attorney's office prosecuted Tony on rape charges. Subsequently, Jane filed a lawsuit against Tony for money damages. Classify each legal action. a. The district attorney's case was a criminal case; Jane's lawsuit was a civil case. b. The district attorney's case was a civil case. Jane's lawsuit was a criminal case. c. Both cases are criminal. d. Both cases are civil.

A

Which of the following governs state efforts to regulate interstate commerce? a. The negative aspect of the Commerce Clause. b. The positive aspect of the Commerce Clause c. The Contract Clause. d. The Privileges and Immunities Clause.

A

A decision of the Supreme Court of Washington would always be binding on: a. a federal district court in Washington. b. a state trial court in Washington. c. the U.S. Court of Appeals for the 9th Circuit. d. a state trial court in Oregon.

B

A woman wishes to attend an all male, publicly supported college. She claims the college is violating the equal protection clause of the Constitution. What level of scrutiny will the court use when deciding this case? a. Minimal scrutiny. b. Intermediate scrutiny. c. Strict scrutiny. d. Compelling interest scrutiny.

B

All of the following are examples of limited jurisdiction courts except: a. Small claims court. b. Appellate court. c. Family law court. d. Traffic court.

B

Congress enacted legislation in 1933 to regulate the securities industry and prohibit various forms of fraud with securities. The Securities Exchange Act of 1934 was passed a year later. This law created the Securities and Exchange Commission as an independent regulatory entity whose function is to administer the two laws. The SEC has generated rules and regulations to administer these acts. These rules and regulations are referred to as: a. statutes. b. administrative laws. c. executive orders. d. common law.

B

Every year the Supreme Court receives about 8,000 requests to review cases. Of this number, the Court will hear about: a. 10. b. 100. c. 200. d. 1,000.

B

Hasbro, Inc., the trademark owner of "Candy Land," sought a court injunction to stop Internet Entertainment Group, LTD from using the domain name "candyland.com." An injunction can only be issued by: a. a jury. b. a judge exercising equitable powers. c. an executive order. d. a subpoena.

B

The Bill of Rights: a. refers to the inalienable rights found at the beginning of the Constitution. b. refers to the first ten amendments to the Constitution. c. refers to a specific listing of individual rights found in the original text of the Constitution. d. refers to a grouping of individual rights set forth by the United States Supreme Court shortly after the Constitution was ratified by the states.

B

The President of the United States: a. creates federal common law. b. oversees administrative agencies. c. determines the constitutionality of statutes. d. passes statutes.

B

The United States Supreme Court has the power to: a. appoint judges to serve on the Supreme Court. b. declare an act of Congress unconstitutional. c. issue executive orders. d. ratify treaties.

B

The doctrine of precedent: a. is the recognized political power whom citizens obey. b. requires that judges decide current cases based on previous rulings. c. is a letter from the administration ordering a court to hear the case. d. authorizes the president to make treaties with foreign nations.

B

The most accurate statement regarding appellate courts is: a. appellate courts often hear new evidence and testimony. b. appellate courts generally accept the factual findings of the trial court. c. only the federal court system has appellate courts. d. appellate courts only hear criminal cases.

B

The notion of civil disobedience is founded on what principle? a. Legal Positivism. b. Natural Law. c. Legal Realism. d. Foreseeability.

B

Written questions served on the other party to a lawsuit are a discovery device known as: a. Depositions. b. Interrogatories. c. Arbitrations. d. Pleadings.

B

2. The three branches of government in the United States are the: a. executive, legislative, and administrative. b. executive, legislative, and statutory. c. executive, legislative, and judicial. d. executive, legislative, and international.

C

A civil case generally proceeds as follows: a. answer, complaint, discovery, trial, judgment. b. complaint, answer, trial, discovery, judgment. c. complaint, answer, discovery, trial, judgment. d. discovery, complaint, answer, trial, judgment.

C

A motion asserting that there are no factual issues in dispute in a trial is known as a: a. Motion for settlement. b. Motion for judgment on the pleadings. c. Motion for summary judgment. d. Motion to intervene.

C

Fly High Aviation provides maintenance for executive jets based on private contracts with corpora-tions that maintain airplanes for company use. Which of the following is least likely to be a Fly High stakeholder? A. the mechanics who work for Sky High B. the corporations that contract with Sky High for their ser-vices C. the citizens who live near the airports that planes maintained by Sky High fly into D. individuals who own Sky High stock

C

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

The decision of an arbitrator is called a(n): a. verdict. b. judgment. c. award. d. binding decision.

C

The following are methods of alternative dispute resolution except: a. Arbitration. b. Minitrial. c. Litigation. d. Judicial Referee.

C

The government may regulate speech as to all EXCEPT: a. manner. b. time. c. content. d. place.

C

When an appeal is filed with the U.S. Supreme Court, the Supreme Court: a. must hear the case if the validity of a federal statute is in question. b. must hear the case if two or more U.S. courts of appeals have decided the legal issue differently. c. has discretion as to which cases it hears. d. must hear all cases.

C

Which of the following would be an example of a civil lawsuit? a. George is being prosecuted for bank fraud. b. The government has initiated an action against Jeff for operating a motor vehicle under the influence of alcohol. c. Gretta hit Rita in a bar during happy hour. Rita is now suing for her injuries. d. The district attorney is bringing Ali to court for violating the city's keg ordinance.

C

A pretrial conference: a. is a meeting between the attorneys and their clients to discuss issues and fees. b. is held to encourage settlement of a dispute without a trial. c. involves the judge and the attorneys representing the parties to a dispute. The purpose is to simplify the issues in dispute. d. Both (b) and (c).

D

Adam moved into an apartment complex. The rules of the complex prohibited unmarried men and women from living together in the same apartment. When Adam's friend, Diane, moved into the apartment he was served with eviction papers. Adam claims the apartment complex is violating his Constitutional rights since it allows married couples to live together. Is Adam right? a. Yes. His equal protection rights have been violated. b. No. His fundamental right of cohabitation has not been violated. c. Yes. He and Diane are being treated differently than married couples. d. No. Constitutional protections do not extend to privately owned apartment complexes.

D

If Oregon passed a statute that prohibited liquor stores from engaging in any kind of advertising, that statute: a. would be valid as an exercise of police power. b. would be valid, as alcohol is illegal for minors. c. would be invalid as a violation of the Commerce Clause. d. would be invalid as an unreasonable restriction of free speech.

D

If the U.S. Supreme Court reaches a tie decision: a. The case will be reconsidered in the following year. b. The decision will be held in abeyance until one of the justices decides to change his or her mind. c. The case will be returned to the Circuit Court of Appeals to reconsider the case in light of the tie decision by the Supreme Court. d. The lower court decision in the case is affirmed.

D

Mike's Bikes is a bicycle sales and repair shop in a small city. It sells new and used bikes with a narrow profit margin and does repairs at minimal costs. Frequently, if a child comes into the shop with a broken part or a flat tire, Mike's makes the repair for free if the child has no money. Mike's also provides a free one-hour repair class for those who want to learn how to fix their bikes. At large local organized bike rides Mike's provides free services, asking only for voluntary donations. Which theory of corporate social responsibility is Mike's exhibiting? A. the narrow view, or invisible hand theory B. the moderate view, or government's hand theory C. the hybrid view, or citizen's hand theory D. the broad view, or management's hand theory

D

The United States Supreme Court has held that a state statute that discriminates against interstate commerce and isolates a state economically is unconstitutional. This concept illustrates: a. federalism. b. the undue burden concept. c. constitutional hierarchy. d. the dormant aspect of the Commerce Clause.

D

The general jurisdiction trial court in the federal system is called: a. United States Trial Court. b. United States Circuit Court. c. United States General Court. d. United States District Court.

D

The moderate view of assessing corporate citizenship holds that: A. corporate officers and boards of directors should provide the exclusive view of corporate re-sponsibility. B. corporate employees below the senior executive level should provide the exclusive view of cor-porate responsibility. C. community groups where the corporation is located should provide the exclusive view of corpo-rate responsibility. D. the government should provide the exclusive view of corporate responsibil-ity.

D

The pleadings in a lawsuit include: a. the complaint. b. the answer. c. written interrogatories. d. Both (a) and (b) above.

D

The requirement that a plaintiff have a stake in the outcome of a case is the requirement of: a. Jurisdiction. b. Certiorari. c. Venue. d. Standing.

D

Which of the following are discovery methods? a. Interrogatories. b. Requests for admission. c. Physical or mental examinations. d. All the above.

D

Which of the following is not a purpose of discovery? a. To eliminate surprise at trial. b. To save the time of the court. c. To promote the settlement of cases. d. To eliminate the need to consider precedent.

D

Which of the following is true about the lower federal courts? a. There is at least one federal district court in each state. b. There are thirteen federal appellate court circuits, with most circuits covering several states. c. Each state has at least one appellate court circuit to itself. d. Both A and B.

D

The Fourteenth Amendment's Equal Protection Clause "strict scrutiny" test will be used when: a. the classification affects an economic interest. b. the classification affects a person's right to drive. c. the classification differentiates on the basis of race. d. the classification affects a person's right to drink alcoholic beverages.

C

Judicial review can best be described as: a. a state supreme court's power to review lower state court decisions. b. the federal courts' power to hear criminal cases on appeal. c. the federal courts' power to examine, interpret, and even nullify actions taken by another branch of government. d. None of the above.

C

Nobel Prize-winning economist Milton Friedman believed that: A. managers who pursue social initiatives with corporate funds are morally correct and are pursu-ing a path that is required regarding their fiduciary duties owed to stakeholders. B. Adam Smith's belief - that the common good is best served when economic institutions don't pursue a common good but instead pursue an economic advantage - is wrong and misguided. C. the only responsibility a business has is to maximize shareholder wealth. D. a deliberate amorality in corporate decision making is discouraged.

C

One of the purposes of a pretrial hearing is: a. To select the members of the jury. b. To identify the parties to a case. c. To facilitate the settlement of the case. d. To take depositions.

C


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