Business Law - Exam 1

Which of the following statements is most accurate regarding appellate courts? 1) Appellate courts often hear new evidence and testimony. 2) Appellate courts generally accept the factual findings of the trial court. 3) Only the federal court system has appellate courts. 4) Appellate courts hear only criminal cases.

2) Appellate courts generally accept the factual findings of the trial court.

Holt and Collins decide to have their dispute arbitrated by Corrales. Which of the following will NOT be a result of the arbitration? 1) Corrales will render a binding decision. 2) Holt and Collins will not have the chance to present their cases. 3) Holt and Collins give up the right to discovery. 4) Corrales need not give reasons for the decision.

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

Which statement about interpretive rules is correct? 1) Interpretive rules are the most important agency rules. 2) Interpretive rules do not change the law. 3) Interpretive rules are much like statutes. 4) Interpretive rules are made by the legislature.

2) Interpretive rules do not change the law.

The police arrived at Otis's apartment one evening and demanded to look around "just to make sure nothing was happening." They had no warrant and had received no complaints about him. Which statement best describes this situation? 1) The police probably should not have bothered Otis, but they really did nothing wrong. 2) The police violated Otis's Fourth Amendment rights. 3) The police were in the right; they must have suspected Otis had committed a crime. 4) The police violated Otis's Sixth Amendment rights.

2) The police violated Otis's Fourth Amendment rights.

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 (SEC) 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 1) statutes. 2) administrative law. 3) executive orders. 4) common law.

2) administrative law.

SharCo and Blyron Productions are each applying for a television license. In deciding which applicant is better qualified, the FCC will hold an initial hearing before 1) the OSHA. 2) an administrative law judge. 3) an administrative mediator. 4) a House-Senate Conference Committee.

2) an administrative law judge.

The president of the United States 1) creates federal common law. 2) can veto Congressional legislation. 3) determines the constitutionality of statutes. 4) passes statutes.

2) can veto Congressional legislation.

John Johnson is a customer of company ABC. As such, John is a(n) 1) shareholder. 2) customer and stakeholder. 3) customer only. 4) stakeholder only.

2) customer and stakeholder.

DoorWay Computers, Inc., the trademark owner of "DoorWay," sought a court injunction to prevent Handyman Hardware, Inc. from using the domain name, "DoorWay.com." A jury will decide whether DoorWay is entitled to this remedy. 1) true 2) false

2) false

Emails and their attachments are not subject to pretrial discovery. 1) true 2) false

2) false

Every criminal defendant has a right to a jury trial. 1) true 2) false

2) false

If Lorenzo is seeking an injunction against Brenda to prevent her from selling materials that infringe his copyright, he is entitled to a jury trial if the value of the materials is over $100. 1) true 2) false

2) false

If interrogatories are being used as a form of discovery, the party being questioned must generally answer all the questions orally under oath. 1) true 2) false

2) false

If the President vetoes a bill, it can still become law if both the House and the Senate approve it with a 51% majority. 1) true 2) false

2) false

John Akers, former chairman of IBM, argued that ethics are not important to economic competitiveness. 1) true 2) false

2) false

Miranda v. Arizona considered the intent requirement in an armed robbery case. 1) true 2) false

2) false

The "takings clause" prevents the government from taking private property for any reason. 1) true 2) false

2) false

The Federal Sentencing Guidelines are just guidelines. Judges do not have to follow them. 1) true 2) false

2) false

The Fourth Amendment to the Constitution provides Robert, an employee of Mattax Paper Co., due process protection from being fired without a hearing by a neutral fact finder. 1) true 2) false

2) false

The Sixth Amendment declares that a person cannot be tried twice for the same criminal offense. 1) true 2) false

2) false

The power to regulate interstate commerce is given jointly to Congress and the states under the U.S Constitution. 1) true 2) false

2) false

Under the laws of most states, a corporation cannot be held responsible for committing crimes. 1) true 2) false

2) false

When measured in dollars, street crime costs society more than twice as much as white-collar crime. 1) true 2) false

2) false

In alternative dispute resolution (ADR), most cases are resolved through 1) litigation. 2) negotiation. 3) mediation. 4) lawsuits.

2) negotiation.

Jurisdiction can be described as 1) the study of law. 2) the authority of a court to hear and decide a particular type of case. 3) court cases involving the U.S. Constitution or a federal statute. 4) the burden of proof.

2) the authority of a court to hear and decide a particular type of case.

Congresswoman Sloan introduced a bill in the House of Representatives. If the bill is approved by the House committee specializing in that subject, the bill will go to 1) a Senate committee specializing in the subject matter of the proposed legislation. 2) the full House. 3) a Conference Committee made up of representatives of both the House and Senate. 4) the voters of her state for approval.

2) the full House.

A misdemeanor is distinguished from a felony based on 1) the rules of evidence. 2) the length and place of possible imprisonment. 3) the burden of proof. 4) the type of intent.

2) the length and place of possible imprisonment.

The United States Supreme Court has the power to 1) appoint judges to serve on the Supreme Court. 2) void laws passed by Congress. 3) issue executive orders. 4) ratify treaties.

2) void laws passed by Congress.

According to Immanuel Kant, the truth should be told, no matter the outcome. This is the idea behind what he called​ 1) ​moral universalism. 2) ​the categorical imperative. 3) ​moral relativism. 4) ​the veil of ignorance.

2) ​the categorical imperative.

Does ethical behavior maximize profitability? 1) Yes, there is concrete evidence that ethical behavior will always maximize profitability. 2) No, there is concrete evidence that unethical companies will always outperform ethical companies. 3) Although there is no guarantee that ethical behavior pays in the short or long run, there is evidence that the ethical company is more likely to win financially. 4) There is strong evidence that ethical behavior pays financially in the long run, but not in the short run.

3) Although there is no guarantee that ethical behavior pays in the short or long run, there is evidence that the ethical company is more likely to win financially.

Judicial review can best be described as the power of a federal court to 1) abstain from adjudicating major issues and to leave such matters to legislatures. 2) take it upon itself to decide issues on constitutional grounds. 3) declare a statute or governmental action unconstitutional and void. 4) take private property for public use.

3) declare a statute or governmental action unconstitutional and void.

The fraudulent conversion of property which is already in the defendant's possession is 1) money laundering. 2) exclusion. 3) embezzlement. 4) trespassory taking.

3) embezzlement.

The fastest-growing method of dispute resolution in the United States is 1) arbitration. 2) negotiation. 3) mediation. 4) litigation.

3) mediation.

The goal of utilitarian ethics is to 1) establish rules for why certain behaviors are ethical. 2) do the right thing, no matter the result. 3) produce the greatest good for the greatest number of people. 4) establish universal ethical rules that apply to all people.

3) produce the greatest good for the greatest number of people.

The three branches of government in the United States are 1) the executive, legislative, and administrative. 2) the administrative, executive, and statutory. 3) the executive, legislative, and judicial. 4) the administrative, legislative, and international.

3) the executive, legislative, and judicial.

If the title of an appellate court case appears as Jones v. Smith, 1) then it is correct to say that Jones is the plaintiff and Smith is the defendant. 2) it means that Smith won the trial court decision 3) you 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. 4) the trial judge was Jones and the appellate judge is Smith.

3) you 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.

Which of the following does NOT violate the Foreign Corrupt Practices Act? 1) A U.S. company bribes a government official in order to influence a governmental decision. 2) A publicly traded company that does not engage in international trade fails to keep accurate company records. 3) A company pays an inspector to ignore the fact that the company does not have a valid permit. 4) A company allows a facilitating payment for a routine governmental action.

4) A company allows a facilitating payment for a routine governmental action.

Which of the following is NOT an example of a trial court of limited jurisdiction? 1) A probate court 2) A juvenile court 3) A small claims court 4) A general civil division court

4) A general civil division court

Which of the following makes it illegal for U.S. companies and citizens to bribe foreign officials to influence a governmental decision? 1) OSHA 2) RICO 3) CFAA 4) FCPA

4) FCPA

​Which person held the belief that the circumstances into which we are born play an important role in our personal outcome? 1) ​Immanuel Kant 2) ​John Stuart Mill 3) ​Milton Friedman 4) John Rawls

4) John Rawls

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, 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? 1) Yes. His equal protection rights have been violated. 2) No. His fundamental right of cohabitation has not been violated. 3) Yes. He and Diane are being treated differently than married couples. 4) No. Constitutional protections do not extend to privately-owned apartment complexes.

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

What is the primary trial court in the federal system? 1) Municipal Court 2) U.S. Supreme Court 3) U.S. Claims Court 4) U.S. District Court

4) U.S. District Court

Curtis filed a lawsuit against Ulhoff for failure to repay $1,000 according to the terms of a promissory note. The trial ended before it began, with the trial judge granting a motion for summary judgment in favor of Curtis. Ulhoff has appealed, and the Supreme Court of Iowa has remanded the case. This means 1) Curtis automatically wins because he won in the lower court. 2) Ulhoff automatically wins because he lost in the lower court. 3) Neither party wins because the case is being thrown out. 4) We don't know who wins yet because the case is being returned to the trial court for additional steps.

4) We don't know who wins yet because the case is being returned to the trial court for additional steps.

Sarah, an employee of Amex Corporation, committed a serious criminal act in an attempt to obtain a large sales order for her employer. A court found her guilty of the felony and also found the corporation guilty of criminal conduct. The company was fined $1 million. The court 1) erred in fining the company because finding both Sarah and the corporation guilty violates the Double Jeopardy Clause of the Constitution. 2) acted properly if this were a federal proceeding; however, it did not act properly if this were a state proceeding. 3) acted properly in finding Sarah guilty; however, it erred in finding the corporation guilty because of the exclusionary rule. 4) acted properly in this case.

4) acted properly in this case.

Generally, constitutional protections do NOT apply to 1) acts of the federal government. 2) acts of state government. 3) acts of administrative agencies. 4) acts of privately owned businesses.

4) acts of privately owned businesses.

Denzil was one of 50,000 people defrauded of $40 in an advertising scam. His best course of action to recover his money is to 1) mediate the claim with the advertiser. 2) bring an individual lawsuit against the advertiser in a state appellate court. 3) bring an individual lawsuit in a U.S. District Court. 4) become part of a class action lawsuit, which might include plaintiffs who are unaware of the lawsuit or are even unaware they were harmed.

4) become part of a class action lawsuit, which might include plaintiffs who are unaware of the lawsuit or are even unaware they were harmed.

The government itself prosecutes the wrongdoer in a case involving behavior so threatening that society outlaws it altogether. This kind of case involves 1) procedural law. 2) private law. 3) civil law. 4) criminal law.

4) criminal law.

Karen is a strong swimmer. One afternoon she is having a picnic at a lake and sees a man she does not know drowning. Generally, Karen 1) has a legal duty to rescue the man. 2) has a legal duty to rescue the man, but only if her efforts will not pose a serious threat to her own safety. 3) has a legal duty to rescue the man since, as a strong swimmer, she is treated as a "special class" of persons who must get involved in such situations. 4) has no legal duty to rescue the man.

4) has no legal duty to rescue the man.

Which of the following is NOT a component of money laundering? 1) taking the proceeds from a criminal act 2) attempting to conceal the source of the money 3) using the money to commit crimes 4) investing profits back into the company

4) investing profits back into the company

What is the correct order in which a jury trial is conducted? 1) opening statements--jury selection--defendant's case--plaintiff's case--closing arguments and instructions--verdict 2) jury selection--opening statements--defendant's case--plaintiff's case--closing arguments and instructions--verdict 3) opening statements--jury selection--plaintiff's case--defendant's case--closing arguments and instructions--verdict 4) jury selection--opening statements--plaintiff's case--defendant's case--closing arguments and instructions--verdict

4) jury selection--opening statements--plaintiff's case--defendant's case--closing arguments and instructions--verdict

Of all forms of dispute resolution, which one probably offers the strongest "win-win" potential because its goal is voluntary settlement? 1) litigation 2) arbitration 3) jurisdiction 4) mediation

4) mediation

In the House of Representatives, a state's voting power is based on its 1) relative wealth. 2) date of entry into the Union. 3) physical size. 4) population.

4) population.

The Environmental Protection Agency was investigating whether Exgrow, Inc. violated the Clean Air Act. Exgrow refused to give the EPA its computerized reports concerning pollution. To get the reports, the EPA should use a(n) 1) stare decisis. 2) de novo. 3) excaliber. 4) subpoena duces tecum.

4) subpoena duces tecum.

When does a criminal defendant have the right to a trial by jury? 1) in all cases regardless of the circumstances 2) only for cases requiring the defendant to pay restitution 3) only when a bench trial is not available 4) when faced with a charge that could result in a sentence of six months or longer

4) when faced with a charge that could result in a sentence of six months or longer

Holding

A court's decision

Federalism

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

Statute

A law passed by Congress or by a state legislature

Categorical Imperative

An act is only ethical if it would be acceptable for everyone to do the same thing

Ethics decision

Any choice about how a person should behave that is based on a sense of right and wrong

Ethics

How people should behave

Life prospects

The circumstances unto which we are born

Deontological

The duty to do the right thing, regardless of the result

Defendant

The person being sued

Plantiff

The person who is suing

Precedent

The principle that precedent is binding on later cases/ Earlier decisions by a court on similar or identical issues, on which subsequent court decisions can be based

Life principles

The rules by which you live your life

Veil of Ignorance

The rules for society that we would propose if we did not know how lucky we would be in life's lottery

United States Constitution

The supreme law of the United States

Reverse

To declare the lower court's ruling wrong and void/ To rule that the loser in a previous case wins, with no new trial

Remand

To send a case back down to a lower court

Affirm

To uphold a lower court's ruling/ To allow a court decision to stand as is

The Federal Trade Commission promulgated Telemarketing Sales Rules regulating the activities of telemarketers. One of the rules prohibits telemarketers from calling a person's residence at any time other than between 8:00 a.m. and 9:00 p.m. This legislative rule has the effect of a statute. 1) true 2) false

1) true

The amendments to the U.S. Constitution protect the people from the power of state and federal governments. 1) true 2) false

1) true

Under utilitarian ethics, if a decision maximizes happiness in the most people and minimizes pain, it is ethical. 1) true 2) false

1) true

Wever, Inc. is considering relocating a facility to Mexico. The interests of the various stakeholders affected by this decision may conflict. 1) true 2) false

1) true

John Rawls' suggestion that society should reward behavior that provides the most benefit to the community as a whole is referred to as​ 1) ​the difference principle. 2) ​the veil of ignorance. 3) ​moral universalism. 4) ​moral relativism.

1) ​the difference principle.

The Civil Rights Act of 1964, a federal statute, forbids discrimination on the basis of national origin in employment. The Equal Employment Opportunity Commission (EEOC) is the administrative agency that oversees the law. The EEOC issued Guidelines on Discrimination because of National Origin. According to one of the guidelines, the EEOC will presume a violation of the law if an employer sets a work requirement that employees must speak only English in the workplace. This is an interpretive rule because it interprets the Civil Rights Act. 1) true 2) false

1) true

Civil law

Regulates the rights and duties between parties

In Jones v. Clinton, the court held that 1) Paula Jones did not demonstrate the essential elements for her claim. 2) Paula Jones was entitled to a summary judgment. 3) the case be dismissed because of the President's governmental position. 4) President Clinton failed to comply with a discovery order.

1) Paula Jones did not demonstrate the essential elements for her claim.

The issue of the constitutional protections afforded flag burning was addressed in 1) Texas v. Johnson. 2) United States v. Lopez. 3) Marbury v. Madison. 4) Palmore v. Sidoti.

1) Texas v. Johnson.

What has been one consequence of the rise of electronic discovery? 1) The creation of a new industry devoted to help law firms sort through the vast amounts of data. 2) A significant reduction in the amount of time law firms devote to discovery. 3) The gradual phasing out of the use of interrogatories and depositions. 4) A decrease in the cost most law firms charge for discovery.

1) The creation of a new industry devoted to help law firms sort through the vast amounts of data.

Which of the following courts determines facts? 1) U.S. District Court 2) U.S. Supreme Court 3) U.S. Court of Appeals 4) All of these are correct.

1) U.S. District Court

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 1) an adversary system. 2) a conflict system. 3) an alternative dispute resolution system. 4) a mediation system.

1) an adversary system.

In a civil case, the plaintiff must prove the case 1) by a preponderance of the evidence. 2) by clear and convincing evidence. 3) beyond a reasonable doubt. 4) None of the these; the burden of proof is on the defendant.

1) by a preponderance of the evidence.

Connor sells a baseball on eBay that he claims is signed by Babe Ruth. In fact, Connor has forged the signature on the baseball. Connor is guilty of 1) internet fraud. 2) identity theft. 3) mail fraud. 4) embezzlement.

1) internet fraud.

The concept of stare decisis is closely related to the concept of 1) precedent. 2) the bystander rule. 3) statutory law. 4) enabling legislation.

1) precedent.

The primary purpose of RICO was 1) to be a tool against organized crime. 2) to raise revenue. 3) to prosecute non-citizens. 4) to prosecute those engaged in tax fraud.

1) to be a tool against organized crime.

After being served with a summons and a copy of the complaint, a defendant usually files a pleading known as an answer, briefly replying to each allegation in the complaint. 1) true 2) false

1) true

Although RICO was passed to prevent gangsters from taking money they earned illegally and investing it in legitimate businesses, it is now often used against businesspeople who break the law. 1) true 2) false

1) true

By creating three independent and equal branches of the federal government, the U.S. Constitution prevented the federal government's power from being concentrated in one person. 1) true 2) false

1) true

Deontologists would agree that the increasing medical concern over obesity in the United States justifies federal regulation of high fat, high sugar, low nutrition food advertising during children's television programs. 1) true 2) false

1) true

Hal was arrested for burning the U.S. flag in a protest of governmental policy. His action is protected under the First Amendment's guarantee of free speech because the flag burning is considered symbolic speech. 1) true 2) false

1) true

In general, police do not need a warrant to find out what websites you have visited. 1) true 2) false

1) true

Internet auctions are the number one source of consumer complaints about online fraud. 1) true 2) false

1) true

Judicial review is the power of the federal courts to declare a statute or governmental action unconstitutional and void. 1) true 2) false

1) true

Professor Jones accuses Rachel, a senior at a large state university, of cheating on an exam. The Professor claims that Rachel must prove to him that she did not cheat. If she fails to convince him, she will be expelled from college. Rachel is being denied her due process rights. 1) true 2) false

1) true

Summary judgment is appropriate when there are no essential facts in dispute. 1) true 2) false

1) true

Taking a personal property without paying for it is a common type of larceny. 1) true 2) false

1) true

Criminal law

Concerns behavior so threatening that society prohibits it

Difference principle

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