Business Law Midterm Study Guide

Sam, a citizen of New Mexico, wants to file a suit against Tanya, a citizen of Texas. Their diversity of citizenship may be a basis for a. any court to exercise in rem jurisdiction. b. a federal district court to exercise original jurisdiction. c. a U.S. court of appeals to exercise appellate jurisdiction. d. the United States Supreme Court to issue a writ of certiorari.

68

Law includes enforceable rules governing relationships between individuals and their society.

p 1

A party cannot recover damages for severe emotional distress absent a showing of physical injury.

p 101

Defamation is one person's use of another's name without permission.

p 101

A failure to return personal property is conversion even if the rightful owner consented to the initial taking.

p 110

Publishing false information about another's product is conversion.

p 111

To avoid liability for negligence, a business owner must protect its patrons against all risks.

p 113

Congress enacts a law prohibiting toys made in China from being sold in the United States. The Hawaii state legislature enacts a law allowing the sale of Chinese-made toys. Hawaii's law will most likely be a. rendered invalid under the supremacy clause. b. rendered valid the free exercise clause. c. struck down under the due process clause. d. upheld under the commerce clause.

p 14

The Bill of Rights protects individuals against types of interference by the federal government.

p 15

The First Amendment requires a complete separation of church and state.

p 20

An advertisement that contains an endorsement by a celebrity may be deemed deceptive if the celebrity does not actually use the product.

p 335

Olga, a salesperson for Pre-owned Cars & Trucks, Inc., tells Quincy, "This is the best car I've ever seen." This statement is a. an express warranty. b. an implied warranty. c. a warranty of title. d. puffery.

p 359

Dependable Appliances, Inc., and Elain enter into a contract for a sale of kitchen appliances. Dependable, a merchant who deals in goods of the kind sold, notes that its goods come with an implied warranty of merchantability. Under the UCC, this means that the goods are reasonably A. fit for the buyer's particular purpose. b. fit for the ordinary purpose for which such goods are used. c. suitable for resale at an acceptable price. d. the best quality that money can buy.

p 360

It is generally illegal to send an ad via fax without the recipient's permission.

p 378

A loan between two consumers is subject to the Truth-in-Lending Act

p 382

An individual is not liable for any amount of unauthorized charges on his or her credit card.

p 382

Prime Equity Company extends credit in the ordinary course of its business to consumers. Under the Truth-in-Lending Act, Prime must inform a prospective borrower of a. other lenders' credit terms. b. Prime's credit terms. c. Prime's financial situation. d. the borrower's credit score.

p 382

A credit-reporting agency may issue a credit report to anyone who asks.

p 383

The Fair Debt Collection Practices Act applies to anyone who tries to collect a debt.

p 384

No state has adopted the Uniform Commercial Code in its entirety.

p 4

The Federal Trade Commission (FTC) is a government agency that issues rules, orders, and decisions. The Georgia state legislature enacts statutes. The Jackson County Board and the Peach City Council enacts ordinances. Administrative law includes a. all law that affects a business's operation. b. the rules, orders, and decisions of the Federal Trade Commission. c. statutes enacted by the Georgia state legislature. d. ordinances created by the Jackson County Board and the city council of Peach City, Georgia.

p 5

The function of the courts is to interpret and apply the law

p 64

A business firm may have to comply with the laws of any jurisdiction in which it actively targets customers.

p 67

Marbled Granite Company files a suit against Natural Stone, Inc., in a Colorado court with general jurisdiction. In a Delaware court with limited jurisdiction, E-Sales Corporation files a suit against First State Bank. The difference between general and limited jurisdiction is a. the subject matter of the cases that the courts can decide. b. whether a case is being heard for the first time. c. whether a suit is filed against a single individual or many people. d. whether a suit is filed by a citizen or by a business.

p 67

A court cannot exercise jurisdiction over an out-of-state defendant who has only done business in the state over the Internet.

p 69

Inferior Company sells products that are poorly made. Jack, who has never bought an Inferior product, files a suit against the company, alleging that its products are defective. The firm's best ground for dismissal of the suit is that Jack does not have a. certiorari. b. jurisdiction. c. standing. d. sufficient minimum contacts.

p 71

To have standing to sue, a party must have been harmed or have been threatened with harm by the action about which he or she complains.

p 71

The jurisdiction of a state court of appeal is substantially limited to hearing appeals.

p 74

The United States Supreme Court can review a decision by a state's highest court only if a question of federal law is involved.

p 76

A counterclaim is raised by a plaintiff against a defendant's response to a complaint.

p 78

Emil wants to initiate a suit against Fast Credit Company by filing a complaint. The complaint should include a. an explanation of the proof to be offered at trial. b. a motion for judgment n.o.v. c. a motion for judgment on the pleadings. D. a statement of the grounds for the court to exercise jurisdiction.

p 78

A counterclaim is raised by a plaintiff against a defendant's response to a complaint.

p 79

To prepare for a trial between Large Lots Development Corporation (LLDC) and MiniMansion Construction Company (MMCC), MMCC's attorney places LLDC's president under oath. A court reporter makes a record of the attorney's questions and the officer's answers. This is a. a cross-examination. b. a deposition. c. an imposition. d. an interrogatory.

p 79

In Sales Distribution Corp. v. Consumer Products Co., the court decides that a precedent is incorrect or inapplicable. The court a. may rule contrary to the precedent. b. must apply the precedent. c. must ask a higher court to rule on the case. d. must refuse to decide the case.

p 8

During the trial phase of Fuel Corporation's suit against Gas Stations, Inc., their attorneys engage in voir dire. This is a. the assessment of the arguments on the issues. b. the determination of the issues to be argued. c. the litigation of the issues and arguments. d. the selection of jurors.

p 80

In most states, if neither party requests a jury, there will be no jury trial.

p 80

Voir dire is a process for presenting evidence in a case.

p 80

A motion for a judgment notwithstanding the verdict seeks to set aside a verdict and enter a new verdict in favor of the nonprevailing party.

p 82

Edie files a suit against Frank. If this suit is like most cases, it will be a. dismissed during a trial. b. dismissed or settled before a trial. c. resolved only after a trial. d. settled at a trial.

p 85

Betty files a suit against Carl. Before going to trial, the parties meet, with their attorneys to represent them, to try to resolve their dispute without involving a third party. This is a. arbitration. b. litigation. c. mediation. d. negotiation.

p 86

In mediation, the mediator proposes a solution that includes what compromises are necessary to reach an agreement.

p 86

Negotiation is the most complex form of alternative dispute resolution.

p 86

Sid files a suit against Tina. Before going to trial, the parties, with their attorneys, meet to try to resolve their dispute. A third party helps them to reach an agreement. This is a. arbitration. b. litigation. c. mediation. d. negotiation.

p 86

The verdict in a summary jury trial is binding

p 89

A court's direction to a party to do or to refrain from doing a particular act is a rescission.

p 9

A plaintiff is a person against whom a lawsuit is brought.

p 9

Network Corporation files a suit against Omega, Inc., alleging that Omega breached a contract to sell Network a computer system. Network is a. the appellant. b. the appellee. c. the defendant. d. the plaintiff.

p 9

Unless otherwise agreed, the result of an online dispute resolution proceeding may not be appealed to a court.

p 90

Punitive damages are intended to punish a wrongdoer and deter others.

p 98

To commit an intentional tort, one person must intend to harm a certain other person.

p 99