Business Law Quizzes chapter 1-5

Deposition

An oral interview under oath when one parties attorneys asks questions of the other party

To render a binding decision, a court must have what types of jurisdiction:

Both subject matter jurisdiction and jurisdiction over the parties (in personam) to the dispute.

A Plaintiff must ___________________ prior to the expiration of the applicable statute of limitations.

File the Plaintiff's lawsuit with the appropriate court.

Gender

Moderately Hard for government to Regulate - Government interest must be "important"

Commercial Speech

Moderately hard for Government to regulate - Regulation must meet intermediate Test

Zoom Corporation is formed in New York, has its headquarters in Texas and has an office in Oklahoma. For diversity of citizenship purposes, Zoom Corporation would be considered a citizen of: Choose the best and most complete answer.

New York and Texas

Default Judgment

When a defendant fails to file an answer in a timely fashion, the plaintiff may move the court to enter this against the defendant.

Deny Certiorari

When an appeals court decides not to hear the appeal on a case. The lower courts ruling stands

Preemption

Valid Federal law can invalidate a conflicting state law

The doctrine of Stare Decisis _______________________________

determines when a deciding court must follow precedent

A process agreed to by the parties to a contract in which a third party acts as an intermediary between the disputing parties and the result is binding on the parties without their further consent is a(n):

arbitration.

Questions of Law are answered by _____(1)_________ in ________(2)____________.

(1) Judge only (2) Trial and Appeals Courts

Questions of Fact are generally answered by _____(1)_________ in ________(2)____________.

(1) The Finder of Fact which can be a Jury or a Judge, if there is no Jury. (2) Trial Court only

In which of the following instances would the employer or governmental entity be MOST LIKELY to have violated the rights given to individuals and entities under the CONSTITUTION?

- A city council enacts an ordinance banning all church services anywhere within the city limits. - The US Department of Defense has a policy prohibiting its employee's from posting social media posts showing any information of a classified nature to protect national security and disciplines an employee for a post showing such information. - A city fire department requires their firefighters to wear fire resistant gear before entering a burning building for the protection of the firefighter. - A private employer fires an employee for posting negative comments on social media about the employer's products. - A private employer enforces its "casual business attire" dress code against an employee that insists on wearing board shorts and flip flops to work.

Which of the following statements is TRUE?

- A court may render a binding decision whether or not it has jurisdiction over the dispute and the parties to that dispute. - The federal courts have exclusive jurisdiction of cases involving federal questions. - Venue is the power of a court to hear and decide a case. - A deposition is a method of discovery consisting of sworn testimony of the opposing party or witness taken out of court.

Which of the following statements is TRUE regarding the hierarchy of law?

- A decision of the US Supreme Court that has been completely overturned is still enforceable law. - An opinion of the a State Court will always be inferior (below) to a state statute. - If a State law conflicts with a Federal law, the Federal law will be superior (higher) and control over the state law. This concept is called "precedent". - If a State law conflicts with a Federal law, the Federal law will be superior (higher) and control over the state law. This concept is called "preemption".

Which of the following actions constitute "state action" related to the US Constitution?

- A, B and C are all examples of state action. - B. A private corporation requires its employees to waive privacy rights to the information contained on their work issued laptops. - C. A city clerk refuses to issue a permit to a group protesting something the clerk supports. Assume the protest requested is scheduled during the time required by the city ordinance and that the protest is to be held in a public park where protests are regularly permitted. - A and C only. - A. The state of Texas enacts a statute prohibiting people from discussing politics in public.

Which statement is CORRECT regarding administrative agencies?

- An adjudication decision of an administrative agency can be appealed to a court. - Legislative rules enacted by an administrative agency generally may exceed the authority granted to the administrative agency in the enabling statute. - An enabling statute typically provides very detailed instructions and very limited authority to the newly created administrative agency. - Administrative agencies adopt (make) several types of rules, but the administrative agency can never enforce those rules.

The Bill of Rights Amendments

US Constitution

Which of the following statements is TRUE about arbitration?

- Arbitration is not usually binding and the decision of the arbitrator can be appealed to a court. - Arbitration is usually agreed to by the parties in a contract and arbitration is usually binding and the decision of the arbitrator cannot be appealed to a court. - Arbitration can be forced by a court on the parties to a lawsuit, even if the parties have not agreed to arbitration in a contract. - In arbitration, the arbtrators (the people making the decision) are usually NOT experienced in the subject matter of the dispute to be arbitrated.

Which of the following Statements is FALSE?

- Codes are groupings of laws on a similar topic. Example: Criminal Code groups criminal statutes together. - Uniform Laws are typically state laws not federal laws. - Procedural laws govern the rights and duties of individuals and entities. - Forms of relief in civil law include judgments for money damages (law) and equitable remedies (equity). - Court opinions are initially published the reporter for that court and geographic area.

Which of the following statements is TRUE:

- Economic rights are protected against governmental regulation to the same extent that constitutional fundamental rights are protected. - The government may infringe on or restrict a US Citizen's fundamental rights if the government has a "good enough" reason for that restriction. - The higher a US Citizen's constitutional right is valued, the easier it is for the government to enact laws restricting that right. - The government (state actor) cannot restrict a US Citizen's fundamental constitutional rights.

Which of the following statements is TRUE?

- Except in just a few circumstance, in order to conduct a search of a business, an administrative agency must have a search warrant. - Legislative rules by an administrative agency are not enforced like statutes. - Interpretative rules of administrative agencies are automatically binding on the private parties the agency regulates. - Administrative agencies exist only at the federal level.

Which of the following statements is FALSE?

- Federal supremacy means that if a court determines that a federal law and state law conflict, the federal law will take precedence over the conflicting state law. - If a state law conflicts with a federal law, the state law, the state law will always be wholly preempted resulting in the state law being invalid and unenforceable in all circumstances. - States may act in the following areas: Matters outside the Enumerated Powers Matters not prohibited to the States in the US Constitution Matters within the Enumerated Powers where the Federal Government has approved the State to Act as long as the state's action does not interfere with the Matter. - Judicial Review is the process by which courts review the constitutionality of government actions.

Which of the following statements is TRUE?

- If the US Supreme Court disagrees with the opinion of a lower court, the US Supreme Court is said to have overturned the decision of the lower court. The decision of the lower court is no longer precedent. - If the US Supreme Court disagrees with the opinion of a lower court, the US Supreme Court is said to have overturned the decision of the lower court. The decision of the lower court is still considered precedent. - If the US Supreme Court disagrees with the opinion of a lower court, the US Supreme Court is said to have reversed the decision of the lower court. The decision of the lower court is no longer precedent. - If the US Supreme Court disagrees with the opinion of a lower court, the US Supreme Court is said to have reversed the decision of the lower court. The decision of the lower court is still considered precedent.

Which of the following statements is TRUE?

- In a civil action, proper service of the citation (summons) is necessary to obtain In personam jurisdiction (jurisdiction over the person) over the defendant. - The rules regarding Venue determine in which type of court (federal or state) that a lawsuit must be filed. - Service of process is NOT necessary for a court to obtain in personam jurisdiction over a defendant. - The rules of Venue allow a lawsuit to be filed in any city or county in a state where in personam jurisdiction is proper.

Which of the following statements regarding privilege and work product is CORRECT?

- Privilege only arises after litigation has been threatened or filed. - Generally, the contents of a "communication" between an attorney and his client concerning "legal advice" is "Privileged". - A third party can usually compel an attorney to divulge privileged or work product communications. - An email between a client and an attorney in which the attorney provides legal advice to the client does not count as a "communication" and therefore, is not privileged.

Which of the following types of administrative rules/regulations must be adopted in compliance with the Administrative Procedures Act requiring notice and an opportunity to be heard?

- Procedural Rules - Legislative Rules - All these Rules must be adopted in compliance with the Administrative Procedures Act. - Interpretive Rules

Sources of Federal Law Include

- Regulations issued by the Federal Trade Commission, a federal administrative agency - Executive Orders - Federal Court Opinions - Treaties

Which of the following is a TRUE statement with regard to the Commerce Clause of the U.S. Constitution?

- States may regulate interstate commerce in any area if such regulation is NOT an undue burden on interstate commerce. - The Commerce Clause expressly prohibits state regulation of interstate commerce. - The Commerce Clause gives the Federal government the right to regulate the economy, interstate commerce and trade with other countries. - The Supreme Court has defined the scope of the Commerce Clause narrowly and, therefore, has restricted the powers of the federal government to regulate business..

Concerning the "Necessary and Proper Clause", which of the following statements is TRUE?

- The Necessary and Proper Clause allows courts to broadly interpret the Enumerated Powers given to the Federal Government in the US Constitution. - DOES NOT affect the Enumerated Powers given to the Federal Government. - Is NOT included in the Constitution. - The Necessary and Proper Clause requires courts to narrowly interpret the Enumerated Powers given to the Federal Government in the US Constitution.

Which of the following is not a requirement for a precedent court decision to be binding on a future deciding court?

- The Precedent Court must have been of a higher level than the Deciding Court. - The Precedent Court, if Federal, must have been ruling on Federal law. - If the Precedent Court is US Circuit Court of Appeals and the deciding court is a US District Court, that US District Court must be located in the same geographic territory as the US Circuit Court for the Precedent to be binding on the US District Court. - If the Precedent Court is a State Intermediate Courts of Appeal and the precedent opinion regards that state's law, the Federal Court System must follow that precedent as to that state's law.

Which of the following Statements is true?

- The common law is comprised of court opinions and not from statutes. - An action by a defendant must either be a violation of criminal or civil law. That action cannot be a violation of both criminal and civil law. - A court order requiring a party to a lawsuit to pay money to the other party is a remedy in equity. - The common law is comprised of statutes and not from court opinions. - Restatements of law are a source of law written by legal scholars, and Restatements are binding on the courts.

Most states have adopted long-arm statutes to expand their jurisdiction. Which of the following fact situations would NOT result in minimum contacts?

- The defendant commits a tort (civil wrong) within the state. - The defendant has physical office for its business within that state. - A defendant drove through the state without transacting business and without incident. - The defendants entered into a contract that will be performed in the state and makes all payments under the contract in that state. - The defendant owns property within the state and that property is the subject of the lawsuit.

Which of the following items IS NOT a requirement for the government to legally take private property from the citizens of the United States under eminent domain?

- The government's proposed use or purpose for the property to be taken must be for the public. - The government must pay the property owner "just compensation" for the property to be taken. - The government must give the property owner procedural due process (notice and an opportunity to be heard). - The government must pay the property owner what the property owner thinks the property is worth.

Which of the following is NOT a characteristic of Mediation?

- The parties to a mediation are bound without their consent to the mediators decision. - Mediation prior to filing of a lawsuit can be required under a contract. - If the Mediation between the parties is successful and the parties agree to a solution to their dispute, that solution is memorialized in a settlement agreement. Once signed by all parties to the dispute, that agreement is enforceable because it is a contract between the parties. - Mediation is an attempt for the parties to settle their differences. If the parties do not come to an agreement, there is no binding agreement on either party.

Which of the following statements regarding privilege and work product is CORRECT?

- The right to prohibit disclosure for a privileged communication is owned by the attorney. - Only an attorney's communications can be protected as work product. - The protections against disclosure provided by privilege and work product cannot be waived by the client. - A privileged communication may be oral or written. - Protection of a communication as "Work Product" arises at any time that an attorney communicates with his client.

Which of the following statements is TRUE regarding the dual court system existing in the United States?

- Trials where factual evidence is presented may be initiated in the appeals courts. - If you file your lawsuit in the Federal Court System, you may switch over to the State Court System at any time. - Inferior Trial Courts exist in both the Federal and State Court Systems. - The Intermediate Courts of Appeals in the Federal Court System are divided into numbered circuits on a geographic basis.

(Match each description of a lawsuit with the appropriate subject matter jurisdiction) Car Wreck lawsuit between Texas and Oklahoma citizens (no federal laws implicated) - damages are $50,000

Exclusive State Subject Matter Jurisdiction

Paul Plaintiff, a resident of Minnesota, and David Defendant, a resident of Colorado, are involved in a contractual dispute amounting to $80,000. The contract was signed, was payable and was to be performed in Texas. Paul may sue in: Choose the correct answer. Assume the defendant has been served.

- only a state court located in either Colorado or Texas. - Texas federal court only. - either a federal or state court located in either Texas or Colorado. - only a federal court located in either Colorado or Texas. - Colorado federal court only - Minnesota Federal Court only

Before the Occupational Safety and Health Administration (OSHA) can issue a legislative rule regarding safety in the workplace, it must

- provide an opportunity for interested parties to participate in the rulemaking. - OSHA must take all the actions listed in these answers prior to the issuance of a regulation. - publish the regulation in the Code of Federal Regulations. - determine that Congress supports the regulation.

Which of the following statements is TRUE regarding the statute of limitations for contract and torts in Texas?

1. If a tort occurs on August 10, 2022, the injured party must file suit before August 10, 2026. If a contract was signed on May 1, 2022, a breach under that contract occurs on July 1, 2022, the non-breaching party must file suit before July 1, 2024. 2. If a tort occurs on August 10, 2022, the injured party must file suit before August 10, 2024. If a contract was signed on May 1, 2022, a breach under that contract occurs on July 1, 2022, the non-breaching party must file suit before May 1, 2026. 3. If a tort occurs on August 10, 2022, the injured party must file suit before August 10, 2024. If a contract was signed on May 1, 2022, a breach under that contract occurs on July 1, 2022, the non-breaching party must file suit before July 1, 2026. 4. If a tort occurs on August 10, 2022, the injured party must file suit before August 10, 2024. If a contract was signed on May 1, 2022, a breach under that contract occurs on July 1, 2022, the non-breaching party must file suit before July 1, 2024.

Diversity of citizenship exists in the following circumstances: (Assume that the amount in controversy is > $75,000) Choose the correct answer.

1. Plaintiff is a Delaware corporation with its headquarters in Texas. Defendant is a Texas corporation with its headquarters in California. 2. Plaintiff is a Delaware corporation with its headquarters in Texas. Defendant is a California corporation with its headquarters in Texas. 3. Plaintiff is a Delaware corporation with its headquarters in Texas. Defendant is a California corporation with its headquarters in California. 4. Plaintiff is a Delaware corporation with its headquarters in Texas. Defendant is a Texas corporation with its headquarters in California.

A regulation issued by the Food and Drug Administration (A federal Agency)

Administrative Law

(Match the listed source of law with who or what governmental body creates it.) Executive orders

Executive Branch - President

(Match the listed source of law with who or what governmental body creates it.) Common Law

By Courts in court opinion

Zoom Corporation is formed in California, has its headquarters in New York and has an office in Texas. The plaintiff is a resident of Virginia. Zoom does no business in Virginia. Which state(s) could obtain in personam jurisdiction over Zoom? Choose the answer that also contains the correct reasoning. Assume Zoom Corporation has been served.

California, New York and Texas California because Zoom is a "resident" of California for in personam jurisdiction purposes since California is Zoom's state of formation. New York and Texas because by having its principal place of business (headquarters) in New York and an office in Texas, both New York and Texas could obtain in personam jurisdiction over Zoom through each state's long arm statute.

Interstate Commerce

Commerce Across state borders

Intrastate Commerce

Commerce Completely within the borders of one state

An opinion by the Texas Supreme Court

Common Law

Strict Scrutiny Test

Compelling Government Interest

(Match each description of a lawsuit with the appropriate subject matter jurisdiction) Car Wreck lawsuit between Texas and Oklahoma citizens (no federal laws implicated) - damages are $1,000,000

Concurrent Subject Matter Jurisdiction - Diversity

(Match each description of a lawsuit with the appropriate subject matter jurisdiction) Employment Discrimination lawsuit between an employer and employee that are both Texas citizens under the Civil Rights Act of 1964 (Federal Statute) - damages are $1,000,000

Concurrent Subject Matter Jurisdiction - Federal Question

(Match the listed source of law with who or what governmental body creates it.) Statues

Congress or state legislatures

Necessary and Proper Clause

Constitutional guidance allowing courts to broadly interpret the scope of Enumerated Powers

Economic Rights

Easy for government to regulate - Regulation must meet the Rational Relationship Test

(Match the listed source of law with who or what governmental body creates it.) Legislative Law

Elected Officials

Congress creates an administrative agency in an ____________________.

Enabling Statute

(Match each description of a lawsuit with the appropriate subject matter jurisdiction) Copyright infringement lawsuit between 2 private parties under Federal Law- damages are $1,000,000

Exclusive Federal Subject Matter Jurisdiction

(Match the listed source of law with who or what governmental body creates it.) Administrative Law

Governmental Agencies

Fundamental Rights

Hard for Government to Regulate - Government interest must be compelling

Protected Classifications (Race, National Origin, Color, and Religion)

Hard for government to regulate - Government interest must be compelling

Intermediate Test

Important Government Interest

Regulation of Commercial Speech

Intermediate Test

The Civil Rights Act of 1964 - A Federal statue passed by congress

Legislative law

Rational Relationship Test

Legitimate Government Interest

Procedural Due Process requires which of the following:

Notice AND an Opportunity to be Heard

Enumerated Power

Powers given to the Federal Government in the Constitution

In which of the following answers would the listed Deciding Court be bound to follow the law set forth in an opinion issued by the listed Precedent Court?

Precedent Court Deciding Court Type of Law Texas Supreme Court, US Supreme Court, Texas State Law

Economic Regulation

Rational Relationship

Choose the answer that correctly lists sources of law in the correct hierarchy. Highest being the first listed and lowest being the last listed

US Constitution, Federal Statues, State Constitution

Regulation of Protected Non-Commercial Speech

Strict Scrutiny Test

Petition

The document filed by the plaintiff to start a lawsuit

Citation/Summons

The document served upon a defendant

Affirm

The higher appeals court agrees with the ruling of the lower court. The lower court's ruling stands

Reverse

The higher appeals court doesn't agree with the ruling of the lower court. The lower court decision is no longer effective

Remand

The higher appeals court sends the matter back to the lower court to make a determination based on new guidance from the higher court.

Registered Agent

The person or entity appointed to accept service of process for an entity

Answer

The pleading filed by a defendant to prevent a default judgement

In a case where the appropriate state and federal courts have concurrent jurisdiction to hear the matter, the plaintiff may bring the action:

in a state court or a federal court.

A Precedent is ________________

is a previously decided court opinion which is used to help judges decide an issue raised in a current case, that has not been overturned or reversed.