The Legal Environment of Business Test 1 Study Guide

Contributory negligence

A theory in tort law under which a complaining party's own negligence contributed to or caused his or her injuries.

Comparative negligence

A theory in tort law under which the liability for injuries resulting from negligent acts is shared by all parties who were negligent (including the injured party), on the basis of each person's proportionate negligence.

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

All of the choices

Punitive Damages

Awarded in tort cases to punish the wrongdoer and to deter others from similar wrongdoing

A federal statute applies only to those states that agree to apply it within their borders.

False

Compartmentalizing the law into discrete topics indicates that each business transaction is subject to only one specific area of the law.

False

In a criminal case, the object is to obtain a remedy.

False

Independent regulatory agencies are not subject to the authority of the president.

False

Nonverbal expression of belief is not a constitutionally protected form of expression.

False

General Damages

Intended to compensate individuals (but not companies) for the nonmonetary aspects of the harm suffered from a tort, such as pain and suffering

Special Damages

Intended to compensate the plaintiff for quantifiable monetary losses, such as medical expenses

The Florida legislature enacts a state law that violates the U.S. Constitution. This law can be enforced by

No one

Once a court has applied a principle to a certain set of facts, that principle must be applied in future cases involving

Similar facts

A constitution is a primary source of law

True

A local ordinance commonly has to do with a matter concerning only a local governing unit.

True

Courts often refer to secondary sources of law for guidance in interpreting and applying a primary source of law.

True

In the United States, the law consists of written laws and court decisions

True

Only if a state legislature adopts a uniform law does that law become part of the statutory law of that state.

True

The basis of a civil law system is a written code of laws.

True

Which of the following questions does a court NOT ask to determine whether the requirement of causation is met?

Was there intent to cause?

Cuisine Café files a suit in a state court against Dining Tables Inc., alleging a breach of contract. The case proceeds to trial, after which the court renders a verdict. Cuisine decides to appeal to a state appellate court. Its attorney must make sure that the clerk of the trial court sends to the clerk of the appellate court, within a prescribed period of time

a copy of the record on appeal.

A precedent is

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

Suite Properties files a suit in a state court against Tower Offices. At the conclusion of the plaintiff's case, the defendant files a motion asking the judge to direct a verdict in its favor on the ground that the plaintiff presented no evidence to support its claim. This is a motion for

a judgment as a matter of law.

Bey files a suit against Cruises Inc. The defendant wants to respond that it appears from the pleadings the parties do not dispute the facts, that the only question is how the law applies to those facts, and that this response can be supported with witnesses' sworn statements. Cruises should file

a motion for summary judgment.

The availability of different remedies is a factor that can affect

a party's decision to litigate in a certain court.

Under the principle of rights theory, a key factor in determining whether a business decision is ethical is how that decision

affects the rights of others.

The Uniform Commercial Code facilitates commerce

among the states

Ordering a party to perform what was promised is

an equitable remedy

Cornel and Deanna resolve their dispute over the subsidence of Cornel's real property due to Deanna's excavation for an irrigation pond by having a neutral third party render a binding decision. This is

arbitration

The utilitarian theory of ethics does not require

b. the acquiring of the means of production by workers.

In a suit to compel arbitration, a court will order a dispute to be arbitrated if

both parties consented to it.

Heyli is not a resident of Iowa although her website can be accessed by residents of that state. Jen files a suit against Heyli in an Iowa state court. The court is most likely to have jurisdiction over Heyli if Jen's claim arises from

c. substantial business between Jen and Heyli through Heyli's website.

In a suit by Climate Action Now (CAN) against DeForest Inc., CAN serves a written request for the defendant to admit the truth of matters relating to the trial. DeForest's admission in response

conclusively establishes the matter for trial.

A business corporation that acts to ensure its employees are treated fairly and its operations minimally impact the environment is applying the concept of

corporate social responsibility.

Barge Company and Cove Harbor dispute the meaning of their contract. Unable to agree on settlement, the parties prepare for trial. To obtain information, they engage in discovery. This includes gaining access to each other's witnesses and other types of evidence by

depositions and other devices.

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.

false

A resident of one state, when in another state, can be denied the privileges and immunities of that state for any reason.

false

A state may not restrict certain kinds of advertising, even in the interest of preventing consumers from being misled.

false

An attorney's conduct is judged by the reasonable person standard.

false

If a restriction imposed on speech by the government is content neutral, then a court will not allow it.

false

In considering a trial court's judgment, an appellate court bases its opinion on its de novo review of the evidence.

false

Judging a job applicant based on what an online search reveals about the applicant's activities outside the workplace universally is viewed as ethical.

false

Judicial review is the process through which Congress approves or rejects judicial appointments.

false

On appeal of a court's grant or denial of a motion for summary judgment, the appellate court must defer to the trial court's ruling on the issue.

false

Only Congress may pass a law in conflict with the Constitution.

false

Outcome-based ethics deals with traditional standards of behavior.

false

Privacy rights receive no protection under federal law.

false

State governments do not have any authority to regulate interstate commerce.

false

The basic purpose of tort law is to punish criminal wrongdoers.

false

The free exercise clause prohibits the government from passing laws that have any impact on religion.

false

The reasonable person standard concerns itself with how a particular person would act and not with how an ordinarily prudent person should act.

false

Under the categorical imperative, an unethical decision that would have only a small impact is acceptable as long as no one else in society acts the same way.

false

Under the privileges and immunities clause, the federal government has the power to regulate commercial activities among the states.

false

When there is a direct conflict between a federal law and a state law, both laws are rendered invalid.

false

You accidentally bump into someone on the sidewalk and that person falls but is unharmed. Nonetheless, that person usually can successfully sue you for damages.

false

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.

Levon files a suit against Manufacturing Corporation. The defendant believes that even if the plaintiff's statement of the facts is true, according to the law the defendant is not liable. Manufacturing Corporation should

file a motion to dismiss.

When the chief financial officer, or other executive, of a corporation is unsure whether a certain business action is legal, she should act

honestly and responsibly

Data Inc. adheres strictly to the goal of maximizing profits. Data will benefit from ethical behavior

if customer service is good.

Compensatory Damages

intended to compensate or reimburse a plaintiff for actual losses

1. Which of the following is NOT an element of negligence?

intent

Barney files a suit against Courtney, who fails to respond. Consequently, Courtney

is subject to a judgment of default.

Secondary sources of law include

legal scholars research

Jill and Kane, with their attorneys, meet to try to resolve a dispute. A neutral third party works with both sides and proposes a solution, but does not make a decision resolving the matter. This is

mediation

Liz and Moss disagree over the amount due under their contract. To avoid involving a third party in the resolution of their dispute, Liz and Moss could resolve their dispute through

negotiation

2. Cooktop, Inc., manufactures cooktops on which Juarez burns his fingers. Has Cooktop, Inc., unreasonably violated its standard duty of care?

no, because stoves get hot and some people get burned when they are careless

Storage Facilities Inc. files a suit in a state court against TransShip LLC, seeking allegedly unpaid rent for a warehouse. TransShip losses the suit and decides to appeal. TransShip's attorney must file, with the clerk of the trial court, within a prescribed period of time

notice of appeal

In a civil case, the object is to

obtain a remedy to compensate the injured party.

According to the theory of corporate social responsibility, any decision by corporate management should consider how an action affects the firm's

officers, shareholders, suppliers, customers, and community.

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

In response to a discovery request by Bakery LLC, the plaintiff in a pending suit against Cinnamon Rolls Inc., the defendant delays a response to gain time to alter some of the data. Subject to possible sanctions, this is

spoliation

Steel Mill Inc. makes steel forms of substandard quality. Tower Building Company has never bought or used a Steel Mill form, but files a suit against the firm, alleging that its products are defective. The defendant's best ground for dismissal of the suit is that the plaintiff does not have

standing to sue

Laws enacted by legislative bodies at any level of government make up the body of law generally referred to as

statutory law

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

During the trial of a suit concerning the terms of a contract between Marvel and Nina, the plaintiff's attorney presents evidence from Ochre, who is not an expert in the field about which he is being questioned. Ochre can

testify only about what he personally observed.

Ty, a citizen of Utah, files a suit in a Utah state court against Vancouver Sales Corporation, a Washington state company that does business in Utah. The court has original jurisdiction, which means that

the case is being heard for the first time.

The National Association of Manufacturers (NAM) announces a new industry code of ethics. The effectiveness of this code will be determined by

the commitment of NAM's members to enforcing the code.

The jurisdiction of the federal courts is limited because

the federal government has limited powers.

Teresa must resolve a business problem for which she believes there is no easy answer. She identifies the reasons for this belief before analyzing solutions. In terms of the IDDR approach, this is

the inquiry step

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

the number of the volume in an unofficial report of the Court's decisions

Ray, the manager of Soy Farm Inc., must decide whether to plant genetically modified seed that could spread to the crop of an adjacent farm, whose owner opposes its use. Not using the seed could cut Soy's production and profitability, impacting its owners, employees, creditors, and others. If Ray considers all of these factors in making his decision, he is likely applying

the principle of rights theory.

In a case based on diversity of citizenship, a court will apply

the relevant state law.

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

Federal regulations concerning medical devices directly conflict with a certain state law. Under the U.S. Constitution, which law takes precedence is determined by

the supremacy clause

A complaint contains a brief summary of the facts necessary to show the party filing the complaint is entitled to relief.

true

A federal court will apply federal law in a case involving a federal question.

true

A law that that limits a fundamental right may be held to violate substantive due process.

true

A party does not need to have legitimate grounds to appeal a trial court's decision.

true

An intervening event that acts as a superseding (overriding) cause may relieve the defendant of liability for injuries caused by the intervening event.

true

Arbitration differs from other forms of alternative dispute resolution in that a third party hearing a dispute makes a decision for the parties.

true

Corporations enjoy many of the same rights and privileges as natural persons do.

true

Ethics is a branch of philosophy that focuses on morality.

true

State regulatory powers are often referred to as police powers.

true

That a favorable court decision will be likely to remedy an injury is an element of standing.

true

The first step in making an ethical decision is to understand the problem.

true

Under a state long-arm statute, a court can exercise jurisdiction only over certain nonresident defendants.

true

Voir dire refers to the jury selection process.

true

When religious practices work against public policy, the government can act.

true

Build-It Inc. applied an inexpensive but untested technique to brace a transit tunnel wall. The technique was legal but the tunnel collapsed, killing several commuters. Build-It's action was

unethical because the technique was untested.