Business Law Midterm

All states have intermediate appellate courts.

False

Bribing foreign officials to obtain favorable business contracts is not a crime.

False

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

False

Fraud occurs only when there is reliance on a statement of opinion.

False

Larceny relies on fear and force.

False

State laws are the supreme law of the United States.

False

Statements made by in judicial proceedings are NOT privileged communications and may be the basis for defamation.

False

The federal government and the states have the same constitution.

False

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

False

Under the theory of negligence, the duty of care requires a careless act.

False

Very few states have limited the amount of damages that can be awarded in tort cases.

False

Flexo Trucking Company transports hazardous waste. Garn is a Flexo driver, whom the company knows drives longer hours than federal regulations permit. One night, Garn exceeds the limit and has an accident. Spilled chemicals contaminate Hill City's water source, forcing the residents to move away. Flexo acted unethically because

Flexo showed reckless disregard for Hill City's residents and others.

A business firm can sometimes predict whether a given action is legal.

True

A court may depart from a precedent if the precedent is no longer valid.

True

A criminal case must be proved beyond a reasonable doubt.

True

A deposition is a sworn testimony by a party to a lawsuit or any witness.

True

A hacker is someone who uses one computer to break into another.

True

An action may be legal but not ethical.

True

Class-action lawsuits are suits in which a number of persons join together to bring an action.

True

Concurrent jurisdiction exists when both federal and state courts have the power to hear a particular case.

True

Crimes occurring in a business context are popularly referred to as white-collar crime.

True

Ethics is concerned with the fairness or justness of an action.

True

In order to truly understand our legal system, it is important to understand the origins of the common law tradition.

True

One purpose of criminal sanctions is to deter others from committing similar crimes in the future.

True

State constitutions are supreme within their respective borders.

True

The best definition of a precedentis

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

Smithy Saddlery is a saddle shop subject to the laws of New York. In New York, the highest-ranking (superior) law is

a provision in the New York constitution.

Megan is the ethics officer for Nature's Eggs, Inc., an organic egg raising company. In overseeing the application of the company's ethical code of conduct, Megan is most likely notin charge of

ethical reviews of employees' family members.

In studying the legal environment of business, Professor Dooley's students also review ethics in a business context. Ethics includes the study of what constitutes

fair or just behavior.

Counterfeiting is robbery.

false

Fresh Harvest Company, which is based on Georgia, packages and sells vegetables. Jack, who is a resident of North Carolina, buys a Fresh Harvest product, eats it, and suffers severe food poisoning. Jack wants to file a suit against Fresh Harvest. The diversity of citizenship between these parties means that

federal and state courts have concurrent jurisdiction.

Laney is a resident of Maine. Delacorte is a Canadian. They dispute the ownership of Petite Isle, an island in North Rapids River on the border between Canada and the United States. The diversity of the parties' citizenship could serve as a basis for

federal jurisdiction.

Susan is unhappy with the way her mother has made out her will. Susan has a lawyer draft a new will and then signs her mother's name to it without her mother's consent. Susan has committed

forgery.

Eden, the chief executive officer of Flo-Thru Piping Corporation, wants to ensure that Flo-Thru's activities are legal and ethical. The best course for Eden and Flo-Thru is to act in

good faith.

Jack and Jill, citizens of Vermont, are involved in a case related to the adoption of their child. The Vermont state courts

have exclusive jurisdiction over this case.

Ike pushes Joan, who falls and breaks her arm. Ike is liable for the injury

if Ike intended to push Joan.

Hua, a resident of Illinois, owns a warehouse in Indiana. A dispute arises over the ownership of the warehouse with Jac, a resident of Kentucky. Jac files a suit against Hua in Indiana. Regarding this suit, Indiana has

in rem jurisdiction.

Megan, a resident of Ohio, runs a red light in Texas and hits Sarah, a Texas resident. Sarah files suit against Megan. The statute that allows the Texas court to exercise jurisdiction over Megan is called a(n)

long arm statute.

A Montana state court can exercise jurisdiction over Endurance Insurance Corporation, an out-of-state defendant, but the defendant must have

minimum contacts with the state.

John is sales manager for Kleen 'N Brite Products, Inc. Compared to John's personal activities, his business activities most likely involve

more complex ethical issues.

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

no one

Roger wants Andy to work late on a project. He tells Andy that the morally correct thing to do is to stay late at the office and work on the project. Andy feels obligated to stay and work late due to the moral pressure from Roger. Andy stays late at the office, even though he does not want to. Andy can sue Roger for

no tort.

Margaret is the top manager of Pecans, Inc. She sets strict ethical standards for all employees. Margaret, however, often takes some of the company's best nuts and sells them from her house. The ethical tone at Pecans, Inc. is

not likely to be good because although Margaret sets strict ethical standards for the other employees, she does not follow them.

Any decision by the management of Fast-Food Franchise Corporation may significantly affect its

operators, owners, suppliers, the community, or society as a whole.

Vance points a gun at Workman and threatens to shoot him. Workman hits Vance, causing his death. Charged with homicide, Workman can successfully claim as a defense

self-defense.

Owen is a federal judge whose judicial decisions are part of case law, which does not include interpretations of

sound bites in the media.

Ludwig receives from Milo a marimba stolen from Nadine. To be criminally liable, Ludwig must know

that the marimba is stolen and Ludwig must intend to keep it.

A provision in the California state constitution conflicts with a provision in the U.S. Constitution. If challenged

the U.S. Constitution, not the state provision, will be enforced.

Justin wants to file a suit against Mikayla. For a court to hear the case

the court must have jurisdiction.

Mary is angry with Julia so she waits outside Julia's house and hits Julia with a baseball bat as Julia leaves the house. When Julia sues Mary for battery, Mary will be considered a

tortfeasor.