Business Law CH 1-4

If the court certifies an action as meeting the criteria for a class action lawsuit and the plaintiffs prevail or reach a settlement, members of the class must each bring their own lawsuits to obtain relief.

False

The Uniform Commercial Code is a federal law that applies to commercial transactions among the states.

False

The primary distinction between larceny and embezzlement is whether the person taking the property has the intent to deprive the victim permanently of the goods.

False

The state may appeal a verdict of "not guilty" if there is an error in the trial.

False

Today most crimes are covered by statutory law rather than by the common law, although many of the crimes in statutory form had their origins in the common law.

True

A constitution establishes government structure, specifically enumerates certain liberties of the people and:

restricts powers of government.

To a __________ , whether telling a lie in a given instance would produce greater pleasure than telling the truth is less important than deciding if a general practice of lying would maximize society's pleasure.

rule utilitarian

A factor demanding the ethical and social responsibility of business is:

the sheer size and power of individual corporations.

The U.S. Supreme Court has:

used the Contract Clause to restrict states from retroactively modifying public charters and private contracts.

The executive branch of government has been given the power to enforce laws.

True

Which of the following is not included within the term "property" for purposes of procedural due process?

A job at the local grocery store.

In which of the following cases is a court unlikely to provide remedies?

A stranger watches and refuses to help rescue a drowning child.

Bryant knowingly destroyed documents in order to impede an SEC investigation of his company. Under the Sarbanes-Oxley Act:

Bryant's company may be subject to criminal penalties.

Alfred points an unloaded gun at Buster and threatens to shoot. Unobserved by Alfred, Cassie, who is Buster's wife, witnesses the threat and believes Alfred's gun is loaded and that Buster is about to die. Cassie pulls out a gun and shoots and kills Alfred. In this case:

Cassie can successfully invoke the privilege of defense of others because of her reasonable belief at the time she shot Alfred.

Which of the following are pleadings?

Complaint, summons, answer, reply.

What constitutional principle requires that similarly situated people be treated similarly by government?

Equal protection.

The President of the United States has the authority to issue laws, which are called:

Executive orders.

An appeal from a small claims court is taken to the state court of appeals where a trial de novo is begun.

False

An ethical relativist looks primarily to a central authority, such as the Koran, to guide ethical decision making.

False

Congress has established thirteen judicial circuits (twelve numbered circuits plus the District of Columbia circuit), each having a court known as the Court of Appeals.

False

Which of the following is a common criticism of ethical relativism?

It assumes that a person's actions are always correct for that person, but if that is true, then all behavior is, by definition, moral.

Which of the following is not descriptive of the law?

It is always prohibitory.

The degrees of mental fault in criminal law include which of the following?

Subjective fault, Objective fault and Liability without fault

The __________ provides that the federal government shall provide the accused with a speedy and public trial by an impartial jury.

Sixth Amendment

Rosemary signs a contract to sell 500 wood panels for $5,000 to Schirmer Industries to be delivered by April 1. In this case, which of the following statements is NOT true?

Substantive law provides the remedy if either Rosemary or Schirmer Industries breaches this contract.

How does the due process clause of the Fourteenth Amendment differ from the due process clause of the Fifth Amendment?

The Fourteenth Amendment clause protects individuals from violations of their rights by state governments; the Fifth Amendment protects individuals from violations of their rights by the federal government.

Which equal protection test is applied to cases based on gender and legitimacy?

The intermediate test.

The U.S. Supreme Court held that the Due Process Clause of the Fourteenth Amendment requires a state to license a marriage between two people of the same sex and to recognize a marriage between two people of the same sex when their marriage was lawfully licensed and performed in another state.

True

The appellate court does not hear any new evidence but rather takes the case upon the record, abstracts, and briefs.

True

A crime is an act or omission in violation of public law and punishable by the government.

True

A non-corporate entity, such as a limited partnership, takes the citizenship of each of its members.

True

According to the U.S. Supreme Court, the "necessary and proper" clause gives Congress the authority to legislate in areas not mentioned in the list of enumerated powers if the legislation reasonably relates to an enumerated power.

True

Cost-benefit analysis is based on utilitarian theories of ethics.

True

Ethical relativism holds that when any two individuals or cultures differ regarding the morality of a particular issue or action, they are both correct because morality is relative.

True

For the general trial courts in the federal system, Congress has established nearly 100 judicial districts, each of which is located entirely in a particular state.

True

From a Kantian perspective, for an action to be moral, it must be possible for it to be made into a universal law and it must be respectful of the autonomy and rationality of all human beings.

True

If the defendant prevails in a certified class action lawsuit, members of the class may be bound by the decision and thus precluded from bringing their own lawsuits with respect to the claims in the class action lawsuit.

True

In the United States legal system, guilt is never presumed by the court.

True

Jurisdiction is defined as the power or authority of a court to hear and decide a given case.

True

State action is a term that may include conduct by private parties who perform a public function.

True

Subject matter jurisdiction refers to the authority of a particular court to adjudicate a controversy of a particular kind.

True

The Contract Clause of the Constitution applies only to the actions of state governments and not to the federal government.

True

The Contract Clause of the Constitution prevents states from retroactively modifying public charters and private contracts.

True

The U.S. Supreme Court can invalidate a law if it conflicts with the U.S. Constitution.

True

Truman proposed to the board of directors of Trumarc, Inc., that the corporation distribute one percent of its pre-tax yearly income to feed the poor. To Milton Friedman, Truman's proposal would be considered unethical, because it violates the purpose for which the corporation was established.

True

White-collar crime is defined as a nonviolent crime usually involving deceit, corruption, or breach of trust.

True

Which of the following are ways in which a case can reach the United States Supreme Court?

Writ of certiorari and appeal by right.

If the judge denies a defendant's motion for __________, then the defendant has the opportunity to present witnesses. However, if the judge grants the motion, then the defendant automatically wins the case and does not need to present any evidence.

a directed verdict

The Sarbanes-Oxley Act has all but which of the following provisions?

a. Creating severe civil and criminal penalties for enterprises that engage in the commission of two or more predicate acts within a period of ten years.

Because of the increasing complexity of the social, economic, and industrial life of the nation, the scope of __________ has expanded enormously.

administrative law

The branch of public law that deals with the various regulatory functions and activities of agencies of the government is:

administrative law.

A defendant who is indicted will next:

arraigned

Maddox has been charged with vandalism of a privately owned office building. The prosecutor must prove Maddox's guilt:

beyond a reasonable doubt.

Characteristics of a common law system include which of the following?

c. A common law system relies heavily on the judiciary as a source of law and on the adversary system for settling disputes.

The nonbinding, informal process in which a third party is selected by the disputing parties to attempt to help them reach a mutually acceptable agreement is known as:

conciliation

A writ of execution as used in civil law litigation allows:

d. the plaintiff to demand payment from the defendant of a judgment won in court.

The procedural stage of a lawsuit after the pleadings but before trial is the:

discovery stage.

The improper taking of another's property by one in lawful possession of it, that violates a trust, is:

embezzlement

"Actual malice" in defamation cases against the press requires a showing that a reporter intentionally lied.

false

A criminal defendant may be convicted by a preponderance of the evidence.

false

A summary judgment hearing is held in a criminal case to determine whether there is probable cause to believe the defendant is the one who committed the crime.

false

Anton has had a problem with break-ins at his restaurant, so he rigs up a spring gun at the entryway, so that any after-hours intruder will be shot upon entry. Anton may legally use this deadly force to protect his business.

false

Donna forces Todd with a gun to his back to help Donna commit a robbery. If Todd is prosecuted, he would have a valid defense of self-defense.

false

Ezra, charged with crossing the center line in his vehicle, would ordinarily have the case heard in his state's trial court of general jurisdiction.

false

In commercial speech cases, the U.S. Supreme Court requires that any restriction on such speech must be the least restrictive possible to achieve a substantial governmental interest.

false

Selling liquor to a minor can result in criminal liability only if the seller intended to sell to an underage person.

false

The 2010 amendments to the Federal Organizational Corporate Sentencing Guidelines restricted the availability of reduced sentencing for corporations having effective compliance and ethics programs and meeting additional requirements.

false

The Fifth Amendment would protect a defendant from having to give blood samples to the prosecution since it would be a form of self-incrimination as interpreted by the courts.

false

The First Amendment allows free speech in any and all circumstances.

false

The principle of judicial review divides the government into three distinct and independent branches: judicial, executive, and legislative.

false

The U.S. Supreme Court:

has original jurisdiction over certain types of cases.

Mark, a resident of Illinois, while driving on the interstate highway, hits Jayce, a resident of Wisconsin, and totally destroys Jayce's brand new vehicle and injures Jayce. Jayce may bring suit in federal district court:

if the amount in controversy is over $75,000.

A major criticism of utilitarianism as an ethical theory is that:

in some important instances it ignores justice.

In reading the title of a case, Smith v. Jones:

it is not always possible to determine from the case title which party is the plaintiff.

When a trial is conducted with a jury, the judge determines issues of __________ and the jury determines questions of __________.

law, fact

Assume a state has a criminal statute that punishes "every person who by himself or his employee or agent sells anything at short measure." Chris, an employee of Watkins Fencing, Inc. within that state, intentionally sells wire fence to Nowton Construction at short measure. Watkins:

may be held criminally liable for Chris's act even if Watkins did not authorize this action.

The criminal intent necessary to commit a crime is known as:

mens rea.

Cary, a prominent local attorney, was the subject of a newspaper article concerning a trial in which he was involved as counsel. In that article, Cary was reported to have been disbarred in another state ten years previously. It is not true of Cary, but of his cousin, Frank. Cary will win a suit for defamation against the newspaper:

only if he can prove that the paper acted with actual malice.

Most of the protections provided by the U.S. Constitution and its amendments apply only to governmental action, which is referred to as:

state action.

The source of law best suited to making drastic or comprehensive change is:

statutes

The three distinct and independent branches of the United States government are:

the federal judiciary, the Congress, and the executive branch.

Dr. David Doright is a professor at Towers State University. One day he has an argument with the president of the University over which team should win the next Super Bowl. The next day, Dr. Doright is fired for incompetence. He sues, claiming the firing is arbitrary and that he was denied an opportunity to respond to the charges. In this case:

the firing by a state university is state action involving a property right that would entitle Dr. Doright to a hearing and an opportunity to respond to the allegations against him.

The U.S. Constitution reserves to the states or to the people:

the powers the Constitution does not prohibit to the states.

John is a Haitian who has obtained U.S. citizenship. The state he lives in passes a law that all Haitian-born citizens must submit to AIDS testing. The courts will review this law based on:

the strict scrutiny test.

Harris was awarded $4 million in damages in a malpractice case against Dr. Kelsoe. The doctor's attorney filed a motion for a new trial. The motion may be granted if:

the verdict was against the weight of the evidence.

Concurrent federal jurisdiction could exist for cases involving:

treaties of the United States.

Corporations may be held liable for a crime.

true

Federal courts have exclusive jurisdiction over bankruptcy, patent, trademark, and copyright cases.

true

In AT&T Mobility LLC v. Concepcion, the U.S. Supreme Court held that the FAA preempted state law that would have prohibited the enforcement of a consumer arbitration clause requiring consumer complaints to be arbitrated individually instead of on a class-action basis.

true

Law is an instrument intended to achieve and maintain social control.

true

RICO has been successfully applied to businesses that are not engaged in organized crime, despite the fact that its intent is to target organized crime.

true

Situational ethics judges a person's ethics, but first looks at the decision or act from the perspective of the actor.

true

The Congressional power to borrow money on credit of the United States and to coin money have enabled the federal government to establish a national banking system, the Federal Reserve System, and specialized federal lending programs such as the Federal Land Bank.

true

The U.S. Court of Appeals for the Federal Circuit reviews decisions of the Merit Systems Protection Board, the Patent and Trademark Office, and the U.S. Court of Veterans Appeals.

true

The U.S. Supreme Court is the final authority as to the constitutionality of any federal or state law.

true

The federal government's authority to govern economic matters flows from the Commerce Clause.

true

The framers of the Constitution considered it unnecessary to include in the original document liberties that the people were to keep for themselves.

true

The term mens rea refers to the mental intent element of a crime.

true

Under the federalist system, the states retain significant powers; however, the Supremacy Clause of the Constitution provides that within the areas of regulation that are federal in nature, federal law is supreme.

true

One method of appealing a case to the U.S. Supreme Court is by:

writ of certiorari.