BLAW EXAM 1

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A choice-of-law clause permits a party to choose which nation's law to apply to a dispute arising under an international contract.

False

Any court can exercise jurisdiction over any person.

False

Doing business within a jurisdiction is not enough for most courts to compel a defendant to appear.

False

Equal protection means that the government must treat all individuals the same.

False

Even if it conflicts with the U.S. Constitution, a state constitution is supreme within that states' borders.

False

Judicial review is the process through which Congress approves or rejects judicial appointments

False

Privacy rights receive no protection under federal law.

False

State governments do not have any authority to regulate interstate commerce.

False

The rights secured by the Bill of Rights are absolute.

False

The study of business law does not involve an ethical dimension.

False

A corporation's compliance with the laws of any jurisdiction in which it does business is complicated by the fact that those laws can be very different.

True

Congress or a state legislature establishes an administrative agency to perform a specific function.

True

Local governments, including cities, exercise police powers.

True

Rules issued by administrative agencies affect almost every aspect of a business's operations.

True

The U.S. Constitution is the basis of all law in the United States.

True

The amount of business a corporation does within a state can serve to subject or exempt the firm from that state's jurisdiction.

True

The basis of a civil law system is a written code of laws.

True

The common law is a body of law developed from judicial decisions.

True

The doctrines and principles announced in court decisions govern all areas not covered by statutory or administrative law.

True

The first ten amendments to the U.S. Constitution are commonly known as the Bill of Rights

True

The system of checks and balances in the U.S. Constitution allows each branch of government to limit the actions of the other branches.

True

Under a state long-arm statute, a court can exercise jurisdiction only over certain nonresident defendants.

True

Under the full faith and credit clause, any judicial decision in one state with respect to contract rights will be honored and enforced in all states.

True

A precedent is

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

Stare decisis is best defined as

a doctrine under which judges follow established precedents

Lazlo, a citizen of Minnesota, wants to file a suit against Nadji, a citizen of Ohio. The diversity of citizenship may be a basis fo

a federal court to exercise jurisdiction

An award of damages is

a payment of money or property

The Bill of Rights embodies

a series of protections for the individual against government action

Utah enacts a statute to ban advertising in "bad taste." Most likely, a court would hold this statute to be

an unconstitutional restriction of speech

In a suit to compel arbitration, a court will order a dispute to be arbitrated if

both parties consented to it

A trial court's capacity to directly observe witnesses' gestures, demeanor, and other nonverbal behavior supports the decision of an appellate court to

defer to the trial court's findings on questions of fact

To reduce traffic, Market Town enacts an ordinance that allows only a few specific street vendors to operate in certain areas. A court would likely review this ordinance under the principles of

equal protection

Under the U.S. Constitution, Congress has the power to regulate

every commercial enterprise in the United States

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

in rem jurisdiction

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

no one

The members of Climate Action believe that a recently enacted federal law is unconstitutional. They write and sign a petition to the government to repeal the law, refuse to obey it, and stop others from complying with it. Under the First Amendment, these individuals have a right to

petition the government

Common law rules develop from

principles underlying judges' decisions in actual controversies

Jon, a law enforcement official, monitors Kelsey's Internet activities—e-mail and website visits—to gain access to her personal financial data and student information. This may violate Kelsey's right to

privacy

Steel Mill Inc. makes steel forms of substandard quality. Tower Building Company has never bought or used a Steel Mill form, but files a suit against the firm, alleging that its products are defective. The defendant's best ground for dismissal of the suit is that the plaintiff does not have

standing to sue

Laws enacted by legislative bodies at any level of government make up the body of law generally referred to as

statutory law

The federal government has the power to regulate commercial activities among the states under

the commerce clause

Ovid wants to file a suit against Petra. For a court to hear the case,

the court must have jurisdiction

The 1803 decision of the United States Supreme Court in the case of Marbury v. Madison established

the power of judicial review

The term checks and balances refers to the system under which

the powers of government are divided among its branches, each of which exercises a check on the actions of the others

Fresh Seafood Inc. and Grocers Market LLC dispute a term in their contract. Because the parties have a long-standing business relationship that they would like to continue, they could settle their dispute through mediation because

the process is not as adversarial as litigation

Administrative law includes

the rules, orders, and decisions of a government agency

On a challenge to a provision in a state constitution that conflicts with a provision in the U.S. Constitution

the state provision will not be enforced

A federal form of government is one in which the national government shares sovereign power with

the states

Federal regulations concerning medical devices directly conflict with a certain state law. Under the U.S. Constitution, which law takes precedence is determined by

the supremacy clause

A challenge to the constitutionality of an executive order that limits certain state actions is

within the power of judicial review

A constitution is a primary source of law.

True

A federal court will apply federal law in a case involving a federal question.

True

A local ordinance commonly has to do with a matter concerning only a local governing unit.

True

A question of law is generally the focus of an appellate court.

True

Corporations enjoy many of the same rights and privileges as natural persons do.

True

The effect of the minimum-contacts standard is that a business firm has to comply with the laws of any jurisdiction in which it targets customers.

True

The national government has the implied power to undertake actions necessary to carry out its expressly designated powers

True

In Peyton v. Quality Motors, a state supreme court held that a minor could cancel a contract for the sale of a car. Now a trial court in the same state is deciding Rikki v. Street Deals, Inc., a case with similar facts. Under the doctrine of stare decisis, the trial court is likely to

allow the minor to cancel the contract

Two businesses—Berry Farms LLC and Canned Jams Inc.—dispute the quality of goods delivered by the seller and the price agreed to by the buyer. With regard to this dispute, the two parties can

litigate it, resolve it through an alternative method or settle it between themselves

Power, Inc., is a corporation engaged in the business of producing, refining, and distributing energy resources. With respect to the firm's managers, legal concepts can be useful for Power's

marketing manager, human resources manager, & accounting and finance manager


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