BUSL 250 - Business Law

The Supremacy Clause is located in Article _____ of the United States Constitution.

6

In South Dakota v. Dole, what did the United States Supreme Court hold?

A federal statute that grants federal funds for state highways to only those states in which 21 is the legal drinking age is constitutional.

Douglas committed a crime for which he was found guilty and will serve a 10-year sentence in the penitentiary. What type of crime was this?

A felony

Ordinarily, a law enforcement official must obtain an arrest warrant that demonstrates probable cause or that a suspect committed or is about to commit a crime. Who issues the arrest warrant?

A magistrate

Which of the following is not covered under the Counterfeit Access Devise and Computer Fraud and Abuse Act?

Actions of employees who spy on their co-workers through personal means

Which term in criminal law means "the guilty act?"

Actus reus

Which of the following would not be considered a stakeholder for the purposes of the WH framework?

Administrative agencies in charge of regulating the firm

In order to ensure that a case or controversy exists, the plaintiff must show:

An adverse relationship between the parties, an actual legal dispute, and it is a proper matter for judicial determination.

Assume a restaurant is forced to pay damages to a person who suffered food poisoning after eating at the restaurant. What type of law is involved?

Private law and civil law

What is the burden of proof to establish in a criminal case?

Proof beyond a reasonable doubt

When Austin, Texas decides to implement a new tax code that will impose a new tax on business owners within its city limits, which law is applicable?

Public law

What is a provision in a contract mandating that all disputes arising under the contract be settled by arbitration called?

A binding arbitration clause

What was the holding of the United States Supreme Court in the Qualltex Co. v. Jacobson Products Co. case?

A color can constitute a trademark.

Easement Dispute. Sally buys a house from Bob that borders on a lake. Her deed gives her the most complete estate a person may have. She is in her bathing suit sunning one day when her neighbor, Fred, cuts through her yard. Sally tells him not to do that anymore. Fred informs her that he had previously purchased and properly recorded a right to cut across her yard to get lake access. Sally asks you what she should do to try to get rid of Fred because she doesn't like his cutting through her yard when she is sunning. What type of estate did Sally purchase from Bob?

A fee simple absolute estate

Which type of payment does an insolvent debtor make that gives preferential treatment to one creditor over another creditor?

A preferential payment

If a uniform law is proposed, what are the requirements that each state must follow?

A state legislature can ignore the proposed uniform law, adopt it in full, or adopt it in part.

What type of interest does a licensee hold?

A temporary and revocable right

Disputed Ring. While working in the yard, Tina found a beat-up ring. Becca, an eighteen-year old neighbor, came over to visit and liked the ring. Tina said, "You can have this old thing if you would like." Becca replied, "I really like it - Maybe it's a real diamond!" Tina laughingly told her that there was a one in a billion chance of that and that Tina was more likely to win the lottery. A few months later Becca ran over to Tina's house and told Tina that the ring was actually a diamond worth thousands of dollars! Becca gave Tina the ring to examine. Tina put it in her pocket and told Becca that she would never have given it to her if she had realized its value and that possession was back where it had always belonged. Tina also told Becca that Becca failed to legally accept the gift because she did not know its true value and also because Tina did not sign any document turning over title. Becca sues. Which of the following is true regarding Tina's statement that Becca could not have validly accepted the ring?

Tina is incorrect; Becca validly accepted the ring as a gift.

When evaluating primary values, what is not one of the alternative meanings to "justice" described in the textbook?

To maximize the amount of wealth to society

Which of the following is correct regarding trade dress?

Trade dress is entitled to the same protection as a trademark.

Phil owns 150 acres in fee simple absolute. These 150 acres are known as his _____.

estate

If a buyer purchases chattel paper or an instrument in the ordinary course of business and he or she is unaware of any security interest in the good, the buyer obtains the good _____.

free of any security interest

A(n) _____ is a person's present right to property ownership and possession in the future.

future interest

Within ninety (90) days of the creditors' meeting, all creditors except _____must file a proof of claim with the bankruptcy court clerk to receive a portion of the debtor's estate.

secured creditors

If a trademark is used intrastate, the trademark is protected by _____.

state common law

To properly register a trademark with the United States Patent and Trademark Office, one must _____.

submit a drawing of the mark, indicate when it was first used in interstate commerce, and indicate how it is used

The social responsibility of business consists of the expectations __________ impose(s) on firms.

the community

In which school of jurisprudence is the concept of stare decisis rooted?

the historical school

One of the most often-used guidelines for shaping the law is tradition, or custom, which is also called __________.

the historical school

In a dispute between two secured parties with unperfected security interests, which of the following is true?

the party who attached its interest first will prevail.

Which of the following is true regarding the manner in which a secured party may sell collateral after the debtor's default?

the sale may be at either a private sale or a public sale.

The term "checks and balances" means that _____.

there is a balance of power between the federal branches of government so that one branch of government does not dominate the other branches

Private ownership of personal property is referred to as having _____.

title

In a tort action, the person who committed the wrongful action is referred to as a(n) _____.

tortfeasor

The shape and design of a product such as Apple's iPhone is an example of which of the following?

trade dress

Generally, a security interest in collateral that has been perfected in one state will _____.

transfer to another state for a period of four (4) months from the date that the property is brought into the state

Most websites have _____ domain(s).

two

Mens rea means _____.

wrongful state of mind

Georgia has given Timon the right to cross the back part of her property to access a road. This right Timon has is known as a(n) _____.

easement

Margo owns her home and barn in rural Kentucky. This type of property is _____.

real

What does the Fifth Amendment's protection against self-incrimination mean?

INCORRECT ANSWER: That a person does not have to be a witness against himself or herself if a first offense is involved

How is a tort defined?

A wrong or injury to another, other than a breach of contract

Easement Dispute. Sally buys a house from Bob that borders on a lake. Her deed gives her the most complete estate a person may have. She is in her bathing suit sunning one day when her neighbor, Fred, cuts through her yard. Sally tells him not to do that anymore. Fred informs her that he had previously purchased and properly recorded a right to cut across her yard to get lake access. Sally asks you what she should do to try to get rid of Fred because she doesn't like his cutting through her yard when she is sunning. What is the type of right that Fred is exercising by cutting through the yard called?

An easement

Disputed Ring. While working in the yard, Tina found a beat-up ring. Becca, an eighteen-year old neighbor, came over to visit and liked the ring. Tina said, "You can have this old thing if you would like." Becca replied, "I really like it - Maybe it's a real diamond!" Tina laughingly told her that there was a one in a billion chance of that and that Tina was more likely to win the lottery. A few months later Becca ran over to Tina's house and told Tina that the ring was actually a diamond worth thousands of dollars! Becca gave Tina the ring to examine. Tina put it in her pocket and told Becca that she would never have given it to her if she had realized its value and that possession was back where it had always belonged. Tina also told Becca that Becca failed to legally accept the gift because she did not know its true value and because Tina did not sign any document turning over title. Becca sues. Which of the following describes the type of gift at issue?

An inter vivos gift

What types of powers do appellate courts have?

Appellate courts have the power to review previous judicial decisions to determine whether trial courts erred in their decisions.

Juliana is sitting at her desk when Roberto approaches her, screaming at her and raising his fist as if to hit her. Which, if any, tort could this be classified as?

Assault

What signifies that the creditor has become a secured party with an interest in certain collateral?

Attachment

Which of the following is not a typical type of compensatory damage?

Attorney fees

The United States Congress made comprehensive changes to bankruptcy law in the _____.

Bankruptcy Abuse Prevention and Consumer Protection Act of 2005

Disputed Ring. While working in the yard, Tina found a beat-up ring. Becca, an eighteen-year old neighbor, came over to visit and liked the ring. Tina said, "You can have this old thing if you would like." Becca replied, "I really like it - Maybe it's a real diamond!" Tina laughingly told her that there was a one in a billion chance of that and that Tina was more likely to win the lottery. A few months later Becca ran over to Tina's house and told Tina that the ring was actually a diamond worth thousands of dollars! Becca gave Tina the ring to examine. Tina put it in her pocket and told Becca that she would never have given it to her if she had realized its value and that possession was back where it had always belonged. Tina also told Becca that Becca failed to legally accept the gift because she did not know its true value and also because Tina did not sign any document turning over title. Becca sues. Which of the following is true regarding Tina's statement that she was entitled to the ring because she would not have given it to Becca if she had known the true value?

Being ignorant of the value of the ring does not entitle Tina to ownership of it.

Which of the following do not spell out what market participants may and may not legally do?

Business Owners

How is tangible property identified?

By the senses

Which of the following is incorrect regarding trade-secret protection?

Competitors may not legally discover a trade secret by doing reverse engineering.

Victoria owns a bed and breakfast gifted to her by her grandparents. Victoria has the right to run the bed and breakfast and make changes as she pleases as long as she never sells alcohol. This is known as what type of estate?

Conditional Estate

Which of the following schools of jurisprudence is most closely tied to the pursuit of efficiency?

Cost-benefit analysis

Which of the following is not a defense to battery?

Defense of one's reputation

Which of the following are estates that do not include the right to possess the property?

Easements, profits, and licenses

Which of the following is true regarding actions that may be taken while an automatic stay is in effect in a Chapter 7 proceeding?

Legal actions to collect child support payments are not subject to the automatic stay.

Which of the following occurs when a plaintiff expressly agrees, usually in a written contract, to assume the risk posed by the defendant's behavior?

Express assumption of the risk

When might the government not be able to require involuntary transfer of real property?

For private governmental purposes

Which of the following is true regarding the number of creditors who must vote to accept a Chapter 11 reorganization plan?

For the plan to be accepted, two-thirds of the creditors of each class of creditors must vote to approve it.

What statutes prescribe that people in peril who receive voluntary aid from others cannot hold those offering aid liable for negligence?

Good Samaritan

Which of the following is incorrect regarding property interests in Vietnam?

INCORRECT ANSWER: A state official determines the price for which property will be transferred.

The doctrine of _____ allows that if the state and federal government have concurrent authority, the federal government has the right to regulate in that area exclusively.

INCORRECT ANSWER: federal review

Which of the following are nondischargeable debts under a Chapter 7 bankruptcy filing?

INCORRECT ANSWER:Claims of willful or malicious conduct by the debtor that caused injury to another person or property; specific student loans (unless payment of the loans imposes undue hardship on the debtor); and judgments against a debtor for claims resulting from the debtor's drinking and driving

Which of the following is true regarding the rights of a trustee in a Chapter 7 bankruptcy?

INCORRECT ASNWER: The trustee may take possession of the debtor's property and have it appraised.

Which of the following occurs when a plaintiff implicitly assumes a known risk?

Implied assumption of the risk

Which of the following is false regarding Chapter 13 bankruptcy?

Individuals, partnerships, and corporations may file under Chapter 13.

Bank accounts, stocks, and insurance policies are examples of which of the following types of property?

Intangible

Which of the following include accounts, goodwill, and literary rights that can all be subject to security interests?

Intangibles

Which of the following can be considered after-acquired property?

Inventory, livestock, or equipment

What does the word "tort" mean?

It is a French word meaning "wrong."

Overextended Debtor. Dennis purchased a big-screen television from ABC Electronics (ABC) and financed the purchase through ABC based on an agreement granting the retailer a security interest in the television and requiring that Dennis make monthly payments. Three (3) months later, Dennis was unable to continue making payments on the television because he had purchased a boat, a new car, an expensive engagement ring for his girlfriend, and some other items. The ABC store manager called Dennis and asked him to return the television. Dennis refused on the basis that ABC never perfected its interest in the television. According to the Uniform Commercial Code (UCC), what is the proper designation for the television?

It is a consumer good.

Assume Bob is driving and suddenly has an unexpected heart attack, causing him to run over a student crossing the street and breaking the student's leg. Which of the following is correct regarding Bob's liability to the student?

It is unlikely that the student can recover because the accident could not have been avoided even with reasonable care.

Chief Justice John Marshall wrote one of the most important opinions in United States Supreme Court history that established judicial review. What was the name of that case?

Marbury v. Madison

Which of the following is an extension of negotiation?

Mediation

In terms of the transfer of personal property, which of the following is a way in which a gift differs from a purchase?

No consideration is needed for a gift.

What damages are a small amount of money given to recognize that a defendant did indeed commit a tort in a case in which there were no compensable damages suffered by the plaintiff?

Nominal

Which of the following makes mediation advantageous?

Only that it helps disputing parties preserve their relationships, and parties to mediation have a high level of autonomy

What type of jurisdiction do trial courts have?

Original

When discussing real property interests, which of the following is not a property right enjoyed by land owners?

Ozone rights

What damages are given to punish the defendant and are generally only given when the defendant's conduct is extremely outrageous?

Punitive

For the imposition of strict liability, which of the following is a condition required of an activity?

The activity is so inherently dangerous that it cannot ever be safely undertaken

Pet Police. Millie breeds German Shepherd dogs. Bernard, who lives down the street, took in a stray dog loosely identified as a Corgi-plus. The dog, Casanova, would definitely be classified as a mixed breed. Bernard allowed Casanova to roam freely. Unfortunately, Casanova went to visit Millie's pure-bred German Shepherd. Puppies resulted which were Shepherd and Corgi-plus puppies. Millie was incensed. She started a campaign to round up all of the stray dogs, including Casanova, and haul them off to the animal shelter. She picked up a few cats as well. She posted signs all over the neighborhood saying that no animal, neither dog, cat, nor fowl, should come into her yard and that she was going to begin shooting the next time, period. Understandably, Bernard and some of the other neighbors take offense. Bernard comes to Millie's house while she is working in the yard. He walks behind her and shoves her. Millie did not see him coming. Millie turned around and proceeded to have a heated conversation with Bernard. Millie drew her fist back and told Bernard that she was going to punch him in the nose. Millie started to punch Bernard but he stepped back, and all she managed to do was jab him in the shoulder, causing no actual pain. Sally, who was going by on the street, saw Millie attempting to hit Bernard. Sally came over and grabbed Millie's hands, pinning Millie's hands behind her back. Assuming that Millie sues Sally, what would be the most likely result at trial?

Sally will not be convicted of anything because she was acting in the defense of others.

While driving her car down the street, Susan sees a child playing near the road with no adult supervision. Which of the following is most likely correct regarding Susan's duty, if any, to the child?

She has no duty to render assistance to the child.

The many groups of people affected by a firm's decisions are know as:

Stakeholders

Which of the following topics is not regulated by the Uniform Commercial Code?

State taxes

Which of the following is liability without fault?

Strict liability

Which amendment to the United States Constitution guarantees citizens both procedural due process and substantive due process?

The Fifth Amendment

Which of the following provides that a portion of a copyrighted work may be reproduced for purposes of criticism, comment, news reporting, teaching, scholarships, and research?

The fair-use doctrine

Which of the following is correct regarding the intent needed for an intentional tort?

The intent at issue is not intent to harm but, rather, is intent to engage in a specific act, which ultimately results in an injury, physical or economic, to another.

Which of the following must be satisfied in order for a patent, other than a design patent, to be granted?

The object of the patent must be novel, useful, and nonobvious.

Which of the following is not one of the ways an arbitrator's award may be set aside?

The parties do not agree that the arbitrator's award was fair.

In order to establish a claim for negligence, the plaintiff must prove all but which of the following?

The plaintiff acted reasonably.

Brynn has a life estate in her grandmother's farm house. When Brynn passes away, what will happen to the property?

The property goes to another party designated by the original grantor.

Which of the following was not a factor the court considered in the Toys "R" Us, Inc. v. Canarsie Kidde Shop, Inc. case in determining whether "Kids 'r' Us" infringed on the "Toys 'R' Us" mark?

The revenue of the defendant corporation

Which of the following is false regarding the provisions of the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) of 2005?

Under the BAPCPA, if a party has at least $10,000 in assets, the party may not file for any type of bankruptcy protection.

Which of the following would be considered a strict-liability tort?

Using dynamite to blast a hole in the side of a mountain

Which of the following is an incorrect statement regarding values?

Values come from the interplay of ethics.

According to the textbook, which of the following is not one of the core values associated with Adidas?

We will create an environment that does absolutely no harm.

According to the Uniform Commercial Code (UCC), a purchase money security interest (PMSI) exists in all but which of the following situations?

When a security interest is retained or taken by the buyer of the collateral to secure the seller's fulfillment of an express or implied warranty

When can government agents obtain a search warrant?

When they can establish probable cause

Winona is working on her laptop in the library. Her laptop power cord extends across the floor, causing a tripping hazard. Luke walks by while texting on his phone and does not see the cord. He trips on the cord, pulling Winona's laptop to the floor and cracking the screen as a result. If Winona sues Luke, does Luke have any defense?

Yes, Winona was contributorily negligent

Which of the following is a moratorium for almost all creditor litigation against a debtor in a Chapter 7 bankruptcy proceeding?

an automatic stay

If a grand jury issues an indictment against a defendant, the defendant then appears in court to answer the indictment in a proceeding called the _____.

arraignment

The violation of a duty of care is called _____.

breach of duty

When judges make legal interpretations, this is often referred to as case law or ___________.

common law

As a result of his car accident with a negligent driver, Rasheed secured a $75,000 verdict to compensate him for injuries to his body and his car. This award is for _____damages.

compensatory

According to the Uniform Commercial Code (UCC), value is _____

consideration

The secured party is also known as the secured _____.

creditor

A(n) _____ is a written federal court order signed by a bankruptcy judge stating that the debtor is immune from creditor actions to collect debts.

discharge

Daphne's grandmother called her to her home one day. Having been diagnosed with advanced lung cancer and with only days to live, she gave Daphne a beautiful sapphire ring. This type of gift is known as a(n) _____.

gift causa mortis

Patents and trademarks are considered what type of property?

intellectual

Torts are generally classified as _____.

intentional, negligent, and strict liability

Proximate cause is also sometimes referred to as _____.

legal cause

Most states have a statute that allows for its court system to serve an out-of-state defendant if certain minimum contact requirements are met. What is the name of this statute?

long-arm

Real property ownership includes airspace above the land, water rights flowing across or beneath the land, and _____.

mineral rights under the land

Which of the following describes property that the true owner has intentionally placed somewhere but has forgotten its location?

mislaid

If the defendant is careless such that someone else suffers a detriment, this type of tort is known as _____.

negligence

A patent protects a product, process, invention, machine, or a(n) _____.

plant produced by asexual reproduction

When a debtor sells collateral, he or she receives _____, something that is exchanged for collateral.

proceeds

Which of the following do not qualify as goods subject to security interests?

professional services

Harold owns an apple orchard in the state of Washington. Milo has permission to come onto the property and take apples to sell. This right is known as a(n) _____.

profit

Another name for exemplary damages is _____ damages:

punitive

What damages are given to punish the defendant and are generally only given when the defendant's conduct is extremely outrageous?

punitive

The Stolen Book. Betty tells Susan that Bob stole her business law book from her car. The next day Susan confronts Bob and slaps him for stealing her book. Bob has Susan arrested for slapping him. Susan sues Bob for damages in the amount of the book and for maliciously having her arrested. Claiming that she lied, Bob sues Betty for defamation. Bob is anxious to see Susan punished for slapping him. Which of the following is true regarding action Bob can take?

Bob's privately retained lawyer may not prosecute Susan because that is the government's job, but the privately retained lawyer can bring a civil action against Susan.

Which of the following is true regarding state court jurisdiction?

Cases may fall under state jurisdiction, exclusive federal jurisdiction, or concurrent jurisdiction, and state courts have the power to hear all cases not within the exclusive jurisdiction of the federal court system.

Cosmetic Profits. Sally is the executive vice president of Big Name Cosmetics Company. Through important and material, nonpublic information, she learns that the company is soon going to purchase a smaller chain of stores. It is expected that stock in Big Name Cosmetics will rise dramatically at that point. Sally immediately buys a number of shares of her company's stock. She also tells her friend Alice about the expected purchase of stores. Alice wanted to purchase stock in the company but lacked the funds with which to do so. Although she did not have the funds in Bank A, Alice decided to draw a check on Bank A and deposit the check in Bank B and then proceed to write a check on Bank B to cover the purchase of the stock. She planned to write a check on Bank B and deposit it with Bank A just before the check was presented to Bank A in an attempt to create an artificial balance. Of what offense, if any, is Alice guilty of by her method of payment?

Check kiting

If Dalynda caused Tonya to breach a contract with a customer because she did not ship the promised goods, which type of law is applicable?

Civil law

The Stolen Book. Betty tells Susan that Bob stole her business law book from her car. The next day Susan confronts Bob and slaps him for stealing her book. Bob has Susan arrested for slapping him. Susan sues Bob for damages in the amount of the book and for maliciously having her arrested. Claiming that she lied, Bob sues Betty for defamation. The action Bob has against Betty for defamation involves which of the following?

Civil law

Which of the following is true regarding the personal liability of corporate executives for a business crime?

Corporate executives may be found personally liable for a business crime regardless of whether the business crime was committed for personal benefit or for the benefit of the corporation.

Environmental Concerns. Connie, the president of a company that makes paper, has a new interest in the environment. She recently went to a seminar on environmental dangers and has decided to take steps to clean things up. She started at home and was also committed to change things at work. Connie had to face the fact that her company has been cheating and is not in compliance with applicable environmental regulations due to dumping in a nearby river. Her company has never been cited, however, because it employs a very large number of people in the community, including the mayor's wife and the chief-of-police's brother. On her mission to clean things up, Connie has decided to go even further than the law requires and install the very latest environmental protections. When she announced her plan, the chair of the company's board of directors, Brooke, had a meeting with Connie. Brooke told Connie to analyze the situation carefully because the cost of the additional equipment would mean no dividend to shareholders and no raise for employees. Furthermore, Brooke told Connie that installing all the new equipment would result in higher prices for the company's paper products and could bankrupt the company because of foreign competition. Brooke hinted that Connie could be fired if she persisted. Brooke suggested that Connie just be concerned with a minimal standard of ethics. Which of the following is the minimal standard that a business must meet in a consideration of business ethics?

Decisions must be legal.

What happened that caused WorldCom's CEO Bernard Ebbers to go to jail?

Ebbers and other WorldCom officials used fraudulent accounting methods to overstate their financial status.

Ben, a bank teller, receives $1,000 from a customer for deposit into the customer's bank account. Instead of placing the money into the customer's account, Ben keeps the money for himself. Which of the following offenses has Ben committed?

Embezzlement

Ethical standards are uniform across the United States but are not uniform internationally.

False

_____ cannot deprive individuals of the freedoms protected by the Bill of Rights.

Federal and state governments

In his criminal trial for conspiracy to defraud a client, Leroy chose not to testify on his own behalf. He did so claiming the protection of the _____ Amendment to the United States Constitution, which includes the right not to incriminate oneself.

Fifth

Environmental Concerns. Connie, the president of a company that makes paper, has a new interest in the environment. She recently went to a seminar on environmental dangers and has decided to take steps to clean things up. She started at home and was also committed to change things at work. Connie had to face the fact that her company has been cheating and is not in compliance with applicable environmental regulations due to dumping in a nearby river. Her company has never been cited, however, because it employs a very large number of people in the community, including the mayor's wife and the chief-of-police's brother. On her mission to clean things up, Connie has decided to go even further than the law requires and install the very latest environmental protections. When she announced her plan, the chair of the company's board of directors, Brooke, had a meeting with Connie. Brooke told Connie to analyze the situation carefully because the cost of the additional equipment would mean no dividend to shareholders and no raise for employees. Furthermore, Brooke told Connie that installing all the new equipment would result in higher prices for the company's paper products and could bankrupt the company because of foreign competition. Brooke hinted that Connie could be fired if she persisted. Brooke suggested that Connie just be concerned with a minimal standard of ethics. Connie, however, decides to go forward with her plan to clean things up because she wants to treat others in the same manner that she wants to be treated. Connie's approach is best referred to as the __________.

Golden Rule

In the "WH" process of ethical decision making, what does the "H" stand for? Use Exhibit 2-6

How

Antony's Pizza Palace is in violation of the city's building code that requires all awnings over storefront windows to be bolted to the building's exterior. What type of offense might Antony's be charged with?

INCORRECT ANSWER: A city code misdemeanor violation

Which of the following is true regarding the protection of "fighting words" under the First Amendment to the United States Constitution?

INCORRECT ANSWER: Fighting words are protected speech under the First Amendment only if they are uttered by an individual citizen, not by a corporate representative.

What does a forum-selection clause do?

INCORRECT ANSWER: It specifies for the parties that federal court is the only venue in which to bring a lawsuit.

Which of the following refer(s) to the basic fairness of laws that may deprive an individual of her life, liberty, or property?

INCORRECT ANSWER: Procedural due process

Masked Bandit. Barry, who owned a small convenience store, was robbed when a masked bandit entered his store and demanded his cash while pointing a gun at him. As the bandit ran out of the store, Barry grabbed his own gun and shot the bandit in the leg. When the police arrived, Barry was arrested along with the thief. Barry claimed that no charges should be brought against him because his action in shooting the robber was justified. After the arrest, the officers searched his store and found marijuana. When Barry complained about the arrest and search, the officer in charge told him that because the state police were involved, federal constitutional rights were waived. Barry is trying to obtain legal representation in an attempt to get out of jail, but cannot afford a lawyer because he just spent all his funds buying the illegal drugs for resale that have now been confiscated by the police. Sam, another inmate, asks Barry if the officers explained his rights to him; but Barry only recalls being arrested, hustled into the police cruiser, and whisked off to jail. Which of the following is Barry's best defense, if any, regarding the arrest and search?

INCORRECT ANSWER: That the police violated his Bertinelli rights

If a grand jury issues an indictment against a defendant, the defendant then appears in court to answer the indictment in a proceeding called the _____.

INCORRECT ANSWER: indictment hearing

Which of the following makes mediation advantageous?

INCORRECT: It helps disputing parties preserve their relationships, parties to mediation have a high level of autonomy, and the mediator solves the dispute if the parties are unable to do so

Candy wants to start an Internet business. The Chinese government tells her that certain items on her site are objectionable and illegal, and that if she wants to do business in China, she must remove the objectionable material. Which of the following is true?

If Candy wants to do business in China, she must abide by Chinese law.

Which of the following is true regarding the Fourteenth Amendment to the United States Constitution?

It extends most constitutional rights to defendants at the state level.

Which of the following is incorrect regarding the Racketeer Influenced and Corrupt Organizations (RICO) Act?

It has been a relatively inconsequential tool for addressing white-collar crime.

Which of the following is incorrect regarding the Computer Fraud and Abuse Act?

It prohibits alteration of data in financial computers causing a loss of $100 or more.

What does the so called public disclosure or "television test" mean in regard to ethical considerations?

It requires us to imagine that our actions are being broadcast on national television.

What does the "Golden Rule" mean when discussing ethics?

It suggests that we interact with other people in a manner consistent with the way we would like for them to interact with us.

Most states have a statute that allows for its court system to serve an out-of-state defendant if certain minimum contact requirements are met. What is the name of this statute?

Long-arm

Divorce Fallout. Following a mes divorce, Dr. Fred has encountered significant financial difficulties. Dr. Fred has a friend named Slick Slim who tells Dr. Fred that he has been making lots of money by selling people a wristband that allegedly places pressure on a nerve that signals hunger resulting in a lack of appetite. Slick Slim tells Dr. Fred that, although the device does not really work, people who want to lose weight and look good in their bathing suits will do anything and that it sells like hotcakes. Slick Slim tells Dr. Fred that he will pay Dr. Fred five dollars for every band that Dr. Fred can sell to his patients. Dr. Fred proceeds to mail letters to patients suggesting the use of the band for weight loss. He also uses UPS to mail samples of the band to some patients along with letters encouraging purchase of the bands. Dr. Fred then proceeds to bill Medicare for office consultations he has with patients when they come in to purchase the bands. The scheme is wildly successful. Dr. Fred is able to entirely satisfy his alimony obligations within just a few months. Unfortunately, as patients begin to see that they are not having any weight loss, he has been receiving numerous complaints, and a friend of his told him that he could even be facing some criminal prosecution. Which of the following offenses, if any, did Dr. Fred commit when he used UPS to send correspondence and samples of the bands to patients?

Mail fraud

Supreme Court. Jim, who is a bit eccentric, says that he is fed up with the way a certain employer in his town treats employees and that he is going to sue that employer in an effort to improve matters. Jim also says that he is going to start his case at the appellate court level, skipping over all those "lesser" judges. Jim says that those justices will surely hear him out and that he will also seek a jury. Although he is not a lawyer, Jim believes that the offenses of the employer are so severe that the justices will appreciate his attempt to make things better for the employees involved. Will Jim get a jury at the appellate court level?

No

Which of the following is true regarding state intermediate courts of appeal in state court systems?

Not all states in the United States have intermediate courts of appeal; and in those states, appeals go to the state court of last resort.

What do values generally represent?

Our understanding of the purposes we will fulfill by making particular decisions.

When classifying law, which of the following is not a way in which law is classified?

Philosophical vs. ethical

Cosmetic Profits. Sally is the executive vice president of Big Name Cosmetics Company. Through important and material, nonpublic information, she learns that the company is soon going to purchase a smaller chain of stores. It is expected that stock in Big Name Cosmetics will rise dramatically at that point. Sally immediately buys a number of shares of her company's stock. She also tells her friend Alice about the expected purchase of stores. Alice wanted to purchase stock in the company but lacked the funds with which to do so. Although she did not have the funds in Bank A, Alice decided to draw a check on Bank A and deposit the check in Bank B and then proceed to write a check on Bank B to cover the purchase of the stock. She hoped that she would have sufficient funds to deposit before the check was presented for payment. Of which of the following offenses, if any, is Alice guilty of by buying stock?

She is guilty of an insider trading violation because she traded on tipped information.

In its 1995 case United States v. Lopez, how did the United States Supreme Court rule in its interpretation of the commerce clause?

That the United States Congress had exceeded its Commerce Clause authority when it passed the Gun-Free School Zones Act, a law banning the possession of guns within 1,000 feet of any school

In United States v. Park, what was the United States Supreme Court's ruling regarding the criminal liability of the defendant Park, corporate president of a national food-chain corporation?

That the defendant could be held liable because he failed to ensure his company's compliance with the law.

Junk Food. Mary Dogood, a member of the school board in ABC County, is appalled at the amount of junk food in the schools. She convinces the state legislature to pass an ordinance that no stores may sell any unhealthy junk food within 500 feet of any school or day care center, arguing that such a regulation is a valid exercise of the state's police power to protect its citizens. Convenience stores balk at the regulation and challenge it in court. What do courts generally presume regarding laws passed in accordance with states' police power?

That the law is valid

Which of the following was the result in the Black Star Farms, LLC et al. v. Jerry Olive, Arizona Department of Liquor License and Control et al. case referenced in the textbook, in which it was alleged that an Arizona law limiting direct sales of wine by producers was unconstitutional on the basis that it discriminated against out-of-state wineries?

The Arizona law was valid and did not discriminate against out-of-state wineries.

Geraldo has been acquitted in an embezzlement case brought against him by the federal government. Federal prosecutors would like to try Geraldo again for the same crime. What constitutional protection, if any, does Geraldo have?

The Fifth Amendment's prohibition against double jeopardy

In 2011, Tyson Foods of Arkansas was found guilty of violating which law when it was found to be receiving bribes from Mexican officials?

The Foreign Corrupt Practices Act

Enron, Arthur Anderson, WorldCom and Global Crossing where all reasons that the United States Congress passed which of the following Acts?

The Sarbanes-Oxley Act of 2002

Elizabeth owns a home and farmland in the middle of Boxer County, Iowa. The government determines that Elizabeth's farmland is a prime spot for a new interchange for the national highway system. The government can take Elizabeth's property as long as there is just compensation under which of the following clauses?

The Takings Clause

Environmental Concerns. Connie, the president of a company that makes paper, has a new interest in the environment. She recently went to a seminar on environmental dangers and has decided to take steps to clean things up. She started at home and was also committed to change things at work. Connie had to face the fact that her company has been cheating and is not in compliance with applicable environmental regulations due to dumping in a nearby river. Her company has never been cited, however, because it employs a very large number of people in the community, including the mayor's wife and the chief-of-police's brother. On her mission to clean things up, Connie has decided to go even further than the law requires and install the very latest environmental protections. When she announced her plan, the chair of the company's board of directors, Brooke, had a meeting with Connie. Brooke told Connie to analyze the situation carefully because the cost of the additional equipment would mean no dividend to shareholders and no raise for employees. Furthermore, Brooke told Connie that installing all the new equipment would result in higher prices for the company's paper products and could bankrupt the company because of foreign competition. Brooke hinted that Connie could be fired if she persisted. Brooke suggested that Connie just be concerned with a minimal standard of ethics. Which of the following would be a stakeholder in the company?

The community, shareholders, and future generations

When a case involving diversity of citizenship is tried in federal court, there are two specific jurisdictional requirements that must be met. What are the conditions?

The plaintiff and the defendant must not reside in the same state and the amount in controversy must exceed $75,000

If Lamar decides that it is okay to cheat on his taxes, and he believes that it is okay for everyone to cheat on their taxes, which ethical test does he believe in?

The universalization test

Which of the following is an example of the primary value of freedom?

To possess the capacity or resources to act as one wishes

Which of the following is not one of the areas of exclusive jurisdiction that a federal court offers?

Tort cases

Which of the following is relevant in determining whether a particular government statute violates the Establishment Clause of the United States Constitution?

Whether the statute has a secular legislative purpose; whether the statute's principal or primary effect either advances or inhibits religion; and also whether the statute fosters an excessive government entanglement with religion Correct

The "Who" in the WH process of ethical decision making means what?

Who are the stakeholders affected by the decisions a firm makes?

International Expansion. Zach wants to expand his coffee business internationally - into Zeno, a small remote country in Africa. His best friend Zora asks him if he plans to hire legal counsel for the expansion. Zach replies, "Of course not. The U.S. has the strictest laws regarding contracts, employment, and business practices. So long as I'm legal here, I'm legal anywhere. Besides, I studied up on Zeno law ten years ago, and I know it all." Zach proceeds and lands in jail in the remote country of Zeno for violating recently passed laws protecting employees and mandating certain benefits. Authorities there claim that he sexually harassed an employee, failed to pay sufficient wages, and failed to give employees Zeno's mandated 12 weeks of vacation per year. Which of the following is true regarding Zach's legal problems in Zeno?

Zach must obey the laws of Zeno when operating a business in Zeno and cannot rely upon U.S. laws as a defense.

What tells the defendant that if he or she does not respond to the lawsuit within a certain time period that the plaintiff will receive a default judgment?

a summons

The __________ are a collection of all the laws in one convenient location.

codes

Assume the Securities and Exchange Commission (SEC) prosecutes someone for insider trading. That prosecution is an example of __________.

criminal law

A hacker who tries to shut down the New York Stock Exchange would be charged with _____.

cyber terrorism

Hulio and Helena work for Corporate Enterprise. Both see what they believe to be unethical treatment of a certain group of employees. The employees do not complain and do not say anything about this treatment. Hulio and Helena are not sure whether to report the potential violation. This is an example of an ethical _____________.

dilemma

After filing the initial pleadings and motions, the parties gather evidence through a process known as _____.

discovery

According to the United States Constitution, the authority to govern is divided between federal and state governments. This is known as _____.

federalism

Before business managers consider the social responsibilities of firms in their communities, they need to:

gather all the relevant facts.

Courts can give final judgments that solve existing problems; they cannot provide rulings about _____.

hypothetical situations

Penelope is being sued by her old employer over a breach of contract. The plaintiff sends Penelope a list of written questions that she is to answer under oath. These are known as _____.

interrogatories

Pursuant to _____, the United States Supreme Court can hear a lower court's case and determine the constitutionality of the lower court's ruling.

judicial review

The common law process of _____ allows courts to review legislative and executive actions to determine whether they are constitutional.

judicial review

Temecula, California has instituted a new code regarding motorized scooters. This is an example of a(n):

ordinance

Which of the following terms means that past decisions guide future decisions?

precedent

If a computer store dumps waste behind its building in violation of local, state, or federal environmental regulations, the resulting dispute focuses on __________ law.

public

Suppose a plaintiff alleges that a North Carolina campaign-financing law violates his First Amendment (to the United States Constitution) free speech rights. This case _____, and it falls under _____ jurisdiction.

raises a federal question; concurrent

When a plaintiff files a case involving concurrent jurisdiction in state court, the defendant has a right of _____.

removal

The state of Minnesota's legislature implemented a new law governing how much salt and sand could be distributed on the roadways when the weather turned icy. This action by the legislature is known as __________.

statutory law

Restatements of law can best be described as _________

summaries of common law rules in a particular area of the law that have been enacted by most states.

After the discovery process, either party can file a motion for _____. This motion asserts that no factual disputes exist and that if the judge applied the law to the undisputed facts, her only reasonable decision would be in favor of the moving party.

summary judgment