Business Law Exam 1

The Kentucky court system has different levels: the district court, a trial court of limited jurisdiction; the circuit court, a trial court of general jurisdiction; the Kentucky Court of Appeals, an appellate court; and the Kentucky Supreme Court, the highest court in Kentucky. The Kentucky Court of Appeals hears a case regarding preliminary breath tests and decides that preliminary breath test results may be entered into evidence at trial. This case is binding on

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An American citizen is doing business in Egypt when Egypt passes a law that American citizens cannot do business in Egypt. The United States will

??

Brooklyn becomes disabled and applies for Social Security Disability benefits. Brooklyn's application is denied. Brooklyn appeals the denial and requests a hearing in front of a(n)

??

Iko is an American citizen who owns an office building and a manufacturing plant in Peru. The government of Peru takes over Iko's office building and manufacturing plant, leaving Iko unable to do business in Peru or the United States. Iko consults an attorney and asks if Peru can do this. The attorney would likely say that Peru

??

The Environmental Protection Agency (EPA) is concerned about the high levels of air pollution in American cities. The EPA proposes a regulation that requires a city with a population density of a specific size to reduce their air pollution by any means necessary within 12 months. The city of Los Angeles does not believe this regulation must be followed because it is not a law passed by a government. Is the city of Los Angeles correct in its thinking?

??

Grayson and Kenton are citizens of different countries who have a contract that governs their business relationship. When Kenton breaches the contract, Grayson wants to sue Kenton in the International Court of Justice so as to ensure an impartial decision. To be able to sue in the International Court of Justice, Grayson needs to convince

?? Grayson's country to initiate a case on Grayson's behalf.

Holt and Collins decide to have their dispute arbitrated by Corrales. Which of the following will NOT be a result of the arbitration?

?? Holt and Collins will not have the chance to present their cases.

Joshua is an American citizen, and Sergio is a citizen of Italy. Joshua and Sergio enter into an oral contract where Joshua will buy goods from Sergio for sale in the American market. A hurricane keeps Sergio from meeting contractual obligations, so Sergio asks Joshua to modify the contract. Joshua refuses to modify the contract and sues Sergio for breach. The United Nations Convention on Contracts for the International Sale of Goods (CISG) requires that

?? Joshua modify the contract.

Eric and Kwan have entered into a contract where Kwan will design jewelry and Eric will manufacture the pieces she designs. Eric begins making his own jewelry but continues to market them as jewelry designed by Kwan. Kwan files a lawsuit against Eric in state court requesting an injunction as an equitable remedy. In this case,

?? Kwan and Eric do not have the right to a jury trial because the case will be heard in state court.

What has been one consequence of the rise of electronic discovery?

?? The creation of a new industry to help law firms sort through the vast amounts of data

River and Taylor are citizens of different countries. Their countries have signed the most widely accepted international treaty allowing for arbitration of disputes. They enter into an international contract and include an arbitration clause in the contract. When River later breaches the contract, Taylor asks River to arbitrate the dispute, per their contract. River refuses. Taylor wants to enforce their arbitration clause and will use the

?? World Arbitration Act.

Congress is concerned that too much pollution is being emitted into the air over major cities. To reduce this air pollution, Congress passes the Clean Air Act. After disagreements over the definition of "pollution," the Environmental Protection Agency (EPA) defines it as anything emitted into the air. This definition is

?? adjudication by the agency

Alaina must make a decision regarding marketing a new product for her company. The company has developed a shampoo to help reduce hair loss. In marketing the product, Alaina wants to act ethically by following utilitarian ethics. In doing this, she will decide to

?? aggressively market the product because research has shown that the product does reduce hair loss in a high percentage of users, and statistics show that a majority of the U.S. population is suffering from hair loss and desires an effective product.

Emilio loses at trial. He wants to appeal his case because he believes his coworker lied under oath during the trial. Emilio should

?? appeal his case because the appellate court considers questions of fact, and this is a question of fact.

Since World War II, all nations agree that they do not want their citizens tortured in wartime and have thus accepted that torturing prisoners of war is unacceptable . This is an example of

?? customary international law.

Susan, an American citizen, enters into an employment contract with the Spanish government to teach Spanish government employees how to write grants. Susan was paid for her first two months of work but has not been paid for three months since. Susan files a lawsuit against the Spanish government in a United States District Court. The United States District Court will

?? dismiss the case because the Foreign Sovereign Immunities Act states that American courts cannot hear cases against foreign governments.

The Environmental Protection Agency (EPA) is concerned that too much pollution is being emitted into the air over major cities. To reduce this air pollution, the EPA passes a rule that requires companies to use technology to reduce air pollution. Companies

?? do not have to follow this rule because it is an interpretive rule.

The Environmental Protection Agency (EPA) is concerned that too much pollution is being emitted into the air over major cities. To reduce this air pollution, the EPA passes a rule that requires companies to use technology to reduce air pollution. The EPA believes that a California company is not following the rule. The EPA may

?? do nothing; only law enforcement can investigate violations.

The Environmental Protection Agency (EPA) is concerned that too much pollution is being emitted into the air over major cities. To effectively reduce this air pollution, the EPA should

?? engage in rule making

Zara is a college student attending a college in Georgia. She is concerned about misinformation circulating online about the Covid-19 vaccines. To attempt to counteract this perceived misinformation, Zara distributes informative pamphlets on campus. She is unaware that Congress recently passed a statute that makes it illegal to distribute any information about the Covid-19 vaccines. While distributing her pamphlets, a local police officer tells Zara she must stop. When she refuses, she is arrested. This case will be heard in a

?? federal court because this case triggers federal question jurisdiction.

Laila is a resident of Vermont. Noor is a resident of New York. They are involved in a car accident in New Jersey. Laila suffers serious injuries that result in $200,000 in medical bills. Laila can sue Noor in a

?? federal court due to federal question jurisdiction.

Nuru and Oakes are citizens of different countries. They enter into a contract and include a clause that states that all lawsuits regarding the contract will be filed in the legal system of the country of which Oakes is a citizen. Nuru and Oakes have included a(n)

?? forum selection clause.

Ayana, an American citizen, entered into an employment contract with the Spanish government to open restaurant s for Spain in multiple large U.S. cities, including Los Angeles and New York City, with the hope of luring tourists to Spain by highlighting Spain's delicious local cuisine. Ayana was paid for her first month of work but has not been paid since. Ayana files a lawsuit against the Spanish government in a United States District Court. The United States District Court will

?? hear the case because Ayana is an American citizen.

Susan is an American citizen who enters into an employment contract with the Spanish government to teach Spanish government employees how to write grants. Susan was paid for her first two months of work but has not been paid for three months since. Susan files a lawsuit against the Spanish government in a United States District Court. Spain desires to have its day in court, so Spain waives immunity. The United States District Court will

?? hear the case because Spain waived immunity.

River sees a therapist, Dr. Alva. River and his partner recently broke up and River is very upset. When River is discussing the breakup in a session, he tells Dr. Alva that he has been stalking his former partner and wants to get revenge by stabbing his former partner. Dr. Alva knows that River has a criminal history of domestic violence. Dr. Alva

?? is under a duty to warn River's former partner.

Desiree has an employment contract with Granite Rock Company that says she will not take a position with a competitor for a period of six months upon leaving employment at Granite Rock. After being with Granite Rock for a decade, Desiree receives a job offer from a competitor of Granite Rock. Desiree resigns from Granite Rock and, within a month, begins working for the competing company. Granite Rock sues Desiree. In this case, the judge may

?? issue an injunction, which is a court order to prohibit someone from doing something.

Dallas and Malik are sailing one afternoon. Dallas inexpertly turns the sailboat, which causes Malik to lose his footing and fall overboard. Dallas

?? must help Malik.

A border war is imminent between India and Pakistan. The United Nations Security Council passes a resolution prohibiting war between the two nations, and India and China veto the resolution. The resolution will

?? not pass because the United Nations Security Council does not have the power to prohibit war between nations due to the Act of State Doctrine.

Justin and Sarah are business partners who are engaged in a dispute. They have a contract that contains an arbitration clause. Both parties have agreed to arbitrate any future disputes. The clause also states that Justin, as the partner with the 60 percent interest, has the power to choose the forum and impose the rules that will govern the arbitration. In regard to this arbitration clause, a court will

?? not uphold the clause because the forum will likely not be neutral.

Alecia and Michael are business partners who are engaged in a dispute. They engage in arbitration rather than litigating their case. During the arbitration hearing, Michael does not disclose the important information to Alecia that he has filed for bankruptcy. Regarding this non-disclosure,

?? nothing will occur because of the relaxed rules regarding discovery in arbitration.

Pranav runs a stop sign while speeding and hits Beth's car. Beth sues Pranav for money damages related to the accident and files her lawsuit in federal court. In this case,

?? only Pranav has the right to a jury trial because he ran the stop sign and was speeding.

A subpoena duces tecum is different from an ordinary subpoena in that a subpoena duces tecum

?? requires the person to produce certain documents or things.

Brandon is a resident of Wyoming. Cody is a resident of Nebraska. They are involved in a car accident in Colorado. Brandon suffers serious injuries that result in $50,000 in medical bills. Brandon must sue Cody in

?? state court

Matthew takes pride in being the best person he can be. Matthew's neighbor, Jerold, is at Matthew's house for a barbecue. Jerold bragsto Matthew about claiming his mother-in-law as a dependent, even though she does not qualify as his dependent, and thus paying less in taxes. When Matthew is filing his tax return a week later, he thinks of all the private school tuition he owes for his children, and his conversation with Jerold, so he puts inaccurate information on his tax return. Matthew continues to feel good about himself even after he does this. Matthew's actions are an example of

?? the fudge factor

Amanda and Bruce are involved in a relationship. One night, during a fight, Bruce assaults Amanda and Amanda goes to the police. The police arrest Bruce and charge him with assault. At trial,

?? the police have the burden of proof.

Chloe and Steve are involved in a relationship. One night, during a fight, Steve assaults Chloe and Chloe goes to the police. The police arrest Steve and charge him with assault. At trial, who must prove their case beyond a reasonable doubt?

?? the state

Natalie and Sasha are involved in a relationship. One night, during a fight, Sasha assaults Natalie and Natalie goes to the police. The police arrest Sasha and charge her with assault. At trial,

?? the state must prove its case beyond a reasonable doubt.

Malik and Zahara are neighbors involved in a boundary dispute. Zahara is a Nebraska resident. Malik sues Zahara in Kansas, where she is vacationing when served with a summons. This summons is

?? valid because only civil lawsuits require that a summons be served on the defendant.

Rawlsian justiceis an ethical theory that may be applied to resolve ethical dilemmas. When applying the Rawlsian justice theory, one must consider everything except

?? whether one considers their decision acceptable for everyone to follow.

Eric is an American billionaire who has the funds to travel to outer space. Instead of using hismoney to travel to space solo, Eric pays a group of Americans to travel to space with him while also charging other wealthy people a fee to board their spacecraft. When the group reaches outer space, Eric claims the limits of outer space for the United States. The United States

?? will not be able to claim outer space because outer space is a shared resource.

Which of the following is NOT an example of a trial court of limited jurisdiction?

A juvenile court

An American manufacturer has been asked to provide construction equipment to a foreign government. The manufacturer wants to protect itself if the foreign government refuses to pay for the equipment after delivery. What should the American manufacturer insist upon having to protect its right to sue the foreign government in the event it does not pay for the goods?

A waiver of immunity

Which of the following statements accurately defines civil law?

Civil law regulates the rights and duties between parties

Which of the following statements best describes common law?

Common law requires judges to base their decisions on prior cases.

Marco wants to act ethically in order to benefit the company. Which group would not benefit from Marco's ethical conduct?

Competitors

Which of the following statements best exemplifies how society as a whole benefits from ethical behavior?

Ethical behavior builds trust which is important in all of our relationships.

Historically, many countries had dissimilar and confusing intellectual property rules covering copyrights, trademarks, and patents. Which of the following served to clarify and harmonize the trade-related aspects of intellectual property?

General Agreement on Tariffs and Trade (GATT)

Which of the following, though not a lawmaking body, is so influential that many of its voluntary rules, such as the Incoterms, are accepted as the global standard in international business?

International Chamber of Commerce

What is the correct order in which a jury trial is conducted?

Jury selection, opening statements, plaintiff's case, defendant's case, closing arguments and instructions, verdict

Adam moved into an apartment complex. The rules of the complex prohibit unmarried men and women from living together in the same apartment. When Adam's friend, Devonna, also moved into the apartment, Adam was served with eviction papers. Adam claims the apartment complex is violating his constitutional rights because it allows married couples to live together. Is Adam right?

No. Constitutional protections do not extend to privately owned apartment complexes.

Using the Front Page test can help people resolve their ethical dilemmas. There are problems with using the Front Page test, however. What is a problem with the Front Page test?

Someone could have legitimate reasons to keep certain things private.

Using the categorical imperative can help people resolve their ethical dilemmas. There are problems with using the categorical imperative, however. What is a problem with using the categorical imperative?

The ends do matter.

Santana works for the Kentucky state government. Santana's employer requires employees to work on Sundays and to attend church services at the workplace for an hour on Sundays before their shift begins. Santana does not like fulfilling this requirement. Santana can argue that the employer is violating which clause of the First Amendment?

The establishment clause

What is ethics?

The study of how people should behave

What is the primary trial court in the federal system?

U.S. District Court

Which of the following courts determines facts?

U.S. District Court

Our founders created federalism, which is a

a double-layered system of government, with the national government and state governments each exercising important but limited powers

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." Internet Entertainment Group had established a sexually explicit site at the domain name. This injunction would have to be issued by

a judge

President Nixon issued wage-price controls in an effort to stabilize the economy. This use of executive power was

a valid use of power based on Article II of the Constitution.

The United States has taken a position that legal issues are best resolved by lawsuits involving parties with conflicting interests presenting their strongest possible case to a neutral factfinder. Because of this, the legal system in the United States is considered a(n)

adversary system.

When the Food and Drug Administration prohibits a certain drug from being marketed in the United States, this is

agency regulation

A treaty is said to be adopted when those who have drafted it have

agreed that it is in its final form.

Jesse is an American citizen, and Shaun is a citizen of Ireland. Jesse and Shaun enter into a contract where Jesse will buy goods from Shaun for sale in the American market. Jesse receives a shipment and discovers the goods are so defective they cannot be used. Jesse refuses to pay Shaun. The United Nations Convention on Contracts for the International Sale of Goods (CISG)

allows Jesse to refuse to make payment.

Shane Company and Benson Productions are each applying for a television license. In deciding which applicant is better qualified, the FCC will hold an initial hearing before

an administrative law judge.

Raisa is having her case heard by three or more judges and has no right to a jury trial. Raisa is upset when she discovers that these judges will not hear from any witnesses or hear any new evidence. Raisa's case is being heard by a(n)

appellate court

Senator Mahoney opposed the North American Free Trade Agreement (NAFTA ). Senator Mahoney believed that NAFTA

cost the United States jobs and lowered the standard of living for Americans.

Jessica is required to go to court. The government prosecutes her case, and a district attorney brings the case against her to trial. The injured party in Jessica's case is a witness but does not prosecute her case. The government is seeking to imprison and fine Jessica. Jessica's case is an example of

criminal law

Immanuel Kant believed that the results of a decision are not as important as the reason for making it. This is the principle behind

deontological ethics.

Nyah and Jin are involved in a contract dispute. Nyah sues Jin, and he receives her complaint. Jin

does not have the burden of proof.

Manuel and Charlotte are engaged in a custody battle. In discovery, Manuel requests to see Charlotte's emails and text messages. The court will likely state that

emails, but not text messages, are subject to pre-trial discovery

In the United States, the powers of government are divided between one national government and 50 state governments. This type of system is called

federalism

Nuru and Oakes are citizens of different countries. They enter into a contract and include a clause that states that all disputes will be resolved according to the law of the country of which Nuru is a citizen. Nuru and Oakes have included a(n)

forum selection clause.

The president vetoes a bill that Congress believes is important for the United States to have in place. Congress may

have both houses re-pass the bill, each by a two-thirds margin.

The law is involved in nearly every facet of our lives and has the qualities of being both

intriguing and essential

An inmate in a state prison claims their U.S. constitutional rights prohibiting cruel and unusual punishment are being violated by the state correctional facility. This case

is a federal question case over which the federal courts have jurisdiction.

Common law refers to

law made when judges decide cases and then follow those decisions in later cases.

Alaina must make a decision regarding marketing a new product for her company. The company has developed a shampoo to help reduce hair loss. In marketing the product, Alaina wants to act ethically by following the Front Page test. In doing so, she will decide to

market the product because research has shown that even though the product is only somewhat effective, Alaina feels comfortable having her marketing campaign reported on in the media.

Jesse and Todd are business partners who are engaged in a dispute. They meet with a neutral third party to try to resolve this dispute voluntarily. Jesse and Todd are engaged in

mediation.

In alternative dispute resolution (ADR), most cases are resolved through

negotiation

Deontre is an American citizen, and Ash is a citizen of Israel. Deontre and Ash enter into a contract where Deontre will bring American and European tourists to Israel and Ash will provide lodging and transportation. When Deontre breaches their contract, Ash sues Deontre under the United Nations Convention on Contracts for the International Sale of Goods (CISG). The court will

not hear the case because the CISG applies to commercial goods.

Alaina must make a decision regarding marketing a new product for her company. The company has developed a shampoo to help reduce hair loss. In marketing the product, Alaina wants to act ethically by following deontological ethics. In doing so, she will decide to

not market the product because, while the product would substantially increase the bottom line for Alaina's company, research has shown that the product could actually increase hair loss in a small percentage of users and thus cause them emotional pain.

If the title of an appellate court case appears as Jones v. Smith,

one cannot determine which party is the plaintiff because when a defendant loses a trial and files an appeal, some courts (but not all) reverse the names of the parties.

Generally, constitutional protections do not applyto acts of

privately owned businesses.

Aisling is CEO of her company. Aisling is not required to provide health care for her part-time employees, but she does so anyway. Providing health care for her part-time employees means that the company is less profitable, and shareholders thus receive less money on their investments. By providing this health care, however, these employees take less sick time and are more productive. Milton Friedman would say that Aisling's action

should not be done because the sole duty of managers of a company is to make the company as profitable as possible.

The principle that the courts of one nation lack the power to hear suits against foreign governments is called

sovereign immunity.

Roberto and Kayleigh are neighbors living in Clermont County, Ohio. Roberto builds a fence on what he believes is the boundary of his property yet failed to have the property surveyed first. Kayleigh believes the fence is on her property, and subsequently sues Roberto, asking the court to require him to remove the fence. An earlier Ohio case held that in all boundary disputes, no fence may be built until a property survey occurs or the fence is subject to removal. The judge in Roberto and Kayleigh's case orders that the fence be removed because a survey was not done. In this case, when the judge relies on the prior case, the judge is engaging in

stare decisis

Criminal law is usually statutory in nature because

statutory law is prospective in nature; a court cannot retroactively declare that an action was a crime.

Laws are found in different sources, which include

the U.S. Constitution, statutes, the common law, and administrative law.

According to Immanuel Kant, the truth should be told, no matter the outcome. This is the idea behind what he called

the categorical imperative.

John Rawls' suggestion that society should reward behavior that provides the most benefit to the community as a whole is referred to as

the difference principle.

Angel works for the Environmental Protection Agency and believes in its mission. She understands that all of the following are true about federal administrative agencies except

the heads of administrative agencies are elected.