Exam 1

In cases heard before a jury, the jury functions to decide questions of law, while the judge is still present to decide questions of fact. True False

False

In jury selections, challenges for cause are also called peremptory challenges. False True

False

In many states, if foreclosure and auction does not produce enough money to satisfy the debt owed by the mortgagor, the creditor-mortgagee can still sue the debtor for the balance owed, called a remainder. True False

False

Social media websites, such as Facebook and Twitter, are of little significance to a lawyer during the jury selection process. True False

False

The house next to you is purchased by a sorority at the local university. The sorority sisters party and keep you up most nights. This is an example of a public nuisance. True False

False

The judicial review of an arbitrator's award in a voluntary arbitration procedure is quite restricted and is more limited than the appellate review of a trial court's decision. False True

True

The philosophy of judicial restraint is often termed strict constructionism or judicial abstention (restraint). True False

True

The preponderance of the evidence standard is used most frequently in civil cases. False True

True

The discovery process narrows the issues disputed by the parties involved in a lawsuit. False True

True

Employees of a business cannot be held liable for negligence when they cause injury to a customer or others. False True

False

If an individual promises to make a gift, he or she has created a binding contract. True False

False

________ is personal property that becomes real property by attaching to land or its buildings. A fixture A life estate An easement A deed

A fixture

Which of the following is a similarity between ethical and legal systems? Both systems are institutions of the state. Both systems consist of rules to guide conduct and foster social cooperation. In both systems, the motivation to observe moral values comes from within an individual. In both systems, ethical behavior is based on just meeting minimum legal requirements.

Both systems consist of rules to guide conduct and foster social cooperation.

What type of damages are designed to place a plaintiff in the same position as if there had been no breach of the contract? Specific damages Exact damages Punitive damages Compensatory damages

Compensatory damages

Which of the following statements best defines ethics? Ethics is a simplified term given to the momentary decisions one makes regarding which answer will lead to the most personally successful solution. Ethics is a legal system for evaluating who profits in a business transaction. Ethics is merely a different term for the laws and regulations created by a government. Ethics is a formal system for deciding what is right and wrong and for justifying moral decisions. Ethics is an irrational method used specifically in examining the morality of lives.

Ethics is a formal system for deciding what is right and wrong and for justifying moral decisions.

A contract cannot be avoided even if one of the parties is the victim of the other party's fraud and is injured by that fraud. True False

False

A party involved in arbitration can withdraw from the arbitration process and resort to litigation if the members of that party think the process is not going well. True False

False

A party's disappointment in an arbitration award is a proper basis for having the award overturned. True False

False

An assault is never followed by a battery. False True

False

Cases involving juvenile crime and children who are wards of the state would be heard in probate courts. True False

False

Which of the following statements is true of tort law? It establishes rules for compensation when an owner's legal boundaries are wrongfully crossed by another. It specifies various offenses against the proper order of the state. It involves the recognition of exclusive right in both tangible and intangible resources such as copyrights, patents, trademarks, etc. It covers the rules of how owners transfer resources by exchanging them.

It establishes rules for compensation when an owner's legal boundaries are wrongfully crossed by another.

_____ can be thought of as the central element providing the basis for Western legal systems. Dictum Morals Property Contract

Property

Morgan signs a contract with Shane agreeing to work with him for a movie. Halfway through the production of the movie, Shane decides to quit as he gets another job as a marketing executive. The printed terms in the contract state that when a breach of contract occurs, the breaching party has to pay $20,000 to the non-breaching party. The contract also has additional handwritten terms that state that in the event of a party being unable to complete the performance required due to unforeseen, unnatural causes, the breaching party does not have to pay any money to the non-breaching party. Which of the following statements is true in this situation? Morgan cannot sue Shane for the breach as the liquidated damage is meant to penalize the nonbreaching party. Shane has to pay Morgan $20,000 as consequential damages. Shane has to pay $20,000 to Morgan for breach of contract. Shane does not have to pay any amount to Morgan because his breach was excused by the contractual terms.

Shane has to pay $20,000 to Morgan for breach of contract.

Which of the following statements is true of punitive damages? The key to the award of punitive damages is a defendant's motive. Juries award punitive damages to all cases tried and proven for negligence. Punitive damages are awarded depending on the degree of suffering endured by a plaintiff. Punitive damages are awarded if a defendant agrees to a rescission.

The key to the award of punitive damages is a defendant's motive.

A condition precedent is something that must take place in the future before the duty to perform is established. False True

True

An advantage of mediation is that the parties maintain full control over the resolution of their controversy. False True

True

Andrew, a professor, makes a promise to pay $3.00 to Lily, his student, if Lily gets him a reference book from the library. This is an example of a unilateral contract. True False

True

Both corporations and individuals can exercise the right to freedom of speech. False True

True

Contract law enables private agreements to be legally enforceable. True False

True

For ethical corporate values to make their most significant effect on decision making, corporate employees must be willing to talk with each other about ethical issues. False True

True

If a false imprisonment has occurred, someone has been detained criminally without proper grounds for the detainment. True False

True

If a judge or regulator were to make a ruling or regulation concerning a company in which he or she is a stockholder, they would be creating a conflict of interest. True False

True

In most states, the courts impose strict liability in tort for types of activities they call ultrahazardous. False True

True

Increasing coverage of business decisions by the news media and the Internet has made it harder for large organizations to hide their questionable behavior. True False

True

One of the incentives to settle a lawsuit without going to litigation is that a losing party in litigation will usually have to pay court costs. False True

True

Paying for the items purchased at a store and the store delivering the purchased items simultaneously is an example of implied concurrent conditions of performance. False True

True

Private property is a system of law under which the state recognizes and enforces an individual's rights to acquire, possess, use, and transfer scarce resources. True False

True

Property helps generate prosperity by establishing the conditions necessary for capital formation. False True

True

Rule-of-law nations adopt laws supporting the private market because it is in everyone's interest, including the lawmakers'. True False

True

Typed or handwritten additions to the terms of a form contract are permissible. False True

True

Which of the following statements is true of the supremacy clause? Under this clause, it is immaterial that a state did not intend to frustrate the federal law if the state law in fact does so. Under this clause, state laws decide the validity of the laws passed by Congress. This clause gives priority to U.S. laws when various laws are not consistent. The application of this clause is traditionally limited by the district courts.

Under this clause, it is immaterial that a state did not intend to frustrate the federal law if the state law in fact does so.

The ______ establishes the legislative, executive, and judicial branches of the federal government. Magna Carta Bill of Rights United States Constitution Declaration of Independence

United States Constitution

Subject matter jurisdiction is defined as _______: a judicial philosophy on how judges should decide cases a judicial philosophy about the role of the courts in our society a court's power over the issues involved in a case the underlying principle of a judicial precedent

a court's power over the issues involved in a case

The division of powers between federal and state levels of government is known as ______. feudalism federalism monarchism imperialism

federalism

The judges who make up the U.S. Supreme Court are known as _____. chancellors advocates justices barristers

justices

John has written a book, Battlefield, and was talking to some interested parties from Broadway about making a musical based on it. However, he turned down an offer due to conflicting opinions of who should play the lead roles. A year later, Battlefield was made into a musical but it did not acknowledge the author. This scenario best reflects a violation of _____. property law tort law common law administrative law

property law

Kate Ace is a luxury purse brand that has its own distinctive logo . The company recently discovered that another retailer has been selling counterfeit Kate Ace bags. The legal dispute that will arise here is most likely to be governed by _____. property law securities law tort law environmental law

property law

If laws are inconsistent, which level of legislation will be given the lowest priority in determining which law to follow? state and local laws constitutional law federal laws U.S. Constitution federal regulations

state and local laws

A plaintiff must demonstrate to the court that it has_________in order for the court to hear the case. a counterdefendant a class action a counterclaim subject matter jurisdiction res judicata

subject matter jurisdiction

Han Solo promises Chewy $10 if Chewy collects his dry cleaning (and blaster) for him. This is an example of a(n) ______ contract. voidable bilateral void unilateral

unilateral