Business Law Exam 1

1. A tort is a violation of a duty imposed by the civil law. a. true b. false

a

1. Congress passed a law imposing penalties for displaying "indecent" material online where children could see it. If the U.S. Supreme Court subsequently rules that the statute conflicts with the First Amendment of the U.S. Constitution, the statute is void. a. True b. False

a

1. Ethics is the study of how people should act. a. true b. false

a

1. The law governing the acquisition of territory and the settlement of disputes among nations is public international law. a. true b. false

a

1. The parties to a criminal trial are the government and the defendant. a. true b. false

a

10. The United States and Argentina have signed the Convention on Contracts for the International Sale of Goods (CISG). Oxtron, Inc., a U.S. company, and Leer, an Argentinean company, have entered into a contract under which Oxtron is to ship medical devices to Leer. The contract does not include a choice of law provision. The contract will be governed by a. the CIGS b. the ICC c. the domestic contract law of Argentina d. the domestic contract law of the United States

a

10. The concept of stare decisis focuses most on a. predictability b. flexibility c. legislative intent d. change

a

11. International rules that have become binding through a pattern of consistent, longstanding behavior are referred to as customary international law. a. true b. false

a

11. Tony raped Jane in the parking lot of Joe's Brew Pub. The District Attorney's office prosecuted Tony on rape charges. Subsequently, Jane filed a lawsuit against Tony for money damages. Classify each legal action. a. the district attorney's case was a criminal case; jane's lawsuit was a civil case b. the district attorney's case was a civil case. janes lawsuit was a criminal case c. both cases are criminal d. both cases are civil

a

12. The elements in a defamation case are: a. defamatory statement; falsity; communication; and injury. b. a contract; knowledge of the contract; improper inducement; injury. c. false or misleading fact statements; statements in commercial advertising; likelihood of harm. d. duty; breach of duty; proximate causation; and damages.

a

12. The primary trial court in the federal system is the a. US district court b. US supreme court c. US appellate courts d. various appeals courts

a

13. Which of the following statements is correct regarding the difference between tort and criminal law? a. Tort and criminal law both impose a punishment for the defendant including prison and/or a fine. b. Tort law is prosecuted by the government. c. In criminal law, it is up to the injured party to seek compensation. d. Criminal law is prosecuted by the government.

a

17. Ladd throws a rock intending to hit Minh but misses and hits Nasir instead. On the basis of the tort of battery, Nasir can sue a. ladd b. minh c. the rightful owner of the rock d. no one

a

2. After being served with a summons and a copy of the complaint, a defendant usually files a pleading known as an answer, briefly replying to each allegation in the complaint. a. true b. false

a

2. In 1994, the Arizona Supreme Court decided the case of Hernandez v. Arizona Board of Regents and found a duty of care to avoid furnishing alcohol to underage consumers. If in 2008 a Flagstaff, Arizona plaintiff brings a lawsuit against an Arizona university's fraternity for providing alcohol to members under the legal drinking age, the Hernandez v. Arizona Board of Regents case will serve as precedent. a. True b. False

a

2. In order for the government to obtain a criminal conviction, it must prove its case beyond a reasonable doubt. a. true b. false

a

2. Kenneth was exposed to radiation on his job in an environmental cleanup. In a lawsuit against his employer, the court must decide the full extent of both present and future damages rather than allowing Kenneth to return to court years later if medical problems develop at that time. a. true b. false

a

2. The majority of work done by legislative bodies is performed in committees. a. true b. false

a

2. Wever, Inc. is considering relocating a facility to Mexico. The interests of the various stakeholders affected by this decision may conflict. a. true b. false

a

3. A sports fan, injured by a hockey puck that flew into the stands during an NHL game, would be subject to the defense of assumption of the risk in a suit to recover for her injuries. a. true b. false

a

3. If the President vetoes a bill and if both the House and Senate repass the bill by a two-thirds margin, the bill becomes law. a. true b. false

a

3. Taking a personal property without paying for it is a common type of larceny. a. true b. false

a

3. The fundamental principle of international law is the notion that each government has the absolute authority to rule its people and its territory. a. true b. false

a

4. By creating three independent and equal branches of the federal government, the U.S. Constitution prevented the federal government's power from being concentrated in one person. a. true b. false

a

4. Double jeopardy refers to the fact that a person cannot be tried twice for the same criminal offense. a. true b. false

a

4. In strict liability, if a company sells a beverage in a can that has sharp edges and injures several consumers, it will be held liable even if it didn't know about the problem. a. true b. false

a

4. Islamic law, the legal system influenced by the religion of Islam, is referred to as shari'a. a. true b. false

a

5. A salesclerk at Braybon's Department Store observed a customer remove a ring from a display case and put it in her purse. In most states, Braybon's will be able to detain the customer for suspicion of shoplifting. a. true b. false

a

5. Hal was arrested for burning the United States' flag in a protest of governmental policy. His action is protected under the First Amendment's guarantee of free speech because the flag burning is considered symbolic speech. a. true b. false

a

5. In order to determine if the case she was hearing broke the law, Judge Jane referred to prior rulings on the same subject. In other words, the judge is relying on precedent to make her decision. a. True b. False

a

5. NAFTA is a trade agreement between the United States, Canada and Mexico. a. true b. false

a

5. Roger assaulted Jim in a tavern, causing medical expenses and lost wages. Which of the following is true? a. roger can be prosecuted by the state for a criminal offense and Jim may sue him for money damages b. if roger is convicted of criminal assault, jim is not allowed to sue him for money damages since that would violate the double jeopardy clause of the constitution c. if jim refuses to press charges against roger, the state cannot initiate a criminal proceeding against him d. jim can either select to sue for money damages or proceed with criminal charges

a

5. Silas asks his friend Shelby to come to his property to go fishing at his pond. If he fails to warn her that the dock has a rotten spot and she falls through and is injured, Silas would be held liable in most states. a. true b. false

a

6. Dewayne sold a space heater to Vivian, telling her it would heat a 200-square-foot area, even though he knew it would effectively heat only about one third of that space. Dewayne is liable for the intentional tort of fraud. a. true b. false

a

6. How did it come about that China, France, Russia, the United Kingdom and the United States are the five permanent members of the United Nations Security Council? a. they were the primary victors in WWII b. they are the nations with the largest populations c. they are the economic leaders of the world d. they are the nations with the largest military forces

a

7. Which of the following is NOT a stakeholder? a. a business competitor b. shareholders c. employees d. customers

a

8. The amendments to the U.S. Constitution protect the people from the power of state and federal governments. a. true b. false

a

8. When the government induces the defendant to break the law it is known as a. entrapment b. racketeering c. an exclusionary rule d. a good faith exception

a

9. John Stuart Mill believed that a correct decision was one that maximizes overall happiness and minimizes overall pain, thereby producing the greatest net benefit. This is the principle behind a. utilitarian ethics b. deontological ethics c. rawlsian justice d. moral relativism

a

9. Professor Jones accuses Rachel, a senior at a large state university, of cheating on an exam. The Professor claims that Rachel must prove to him that she did not cheat. If she fails to convince him, she will be expelled from college. Rachel is being denied her due process rights. a. true b. false

a

1. Primary methods of alternative dispute resolution include litigation and mediation. a. true b. false

b

1. While at the park, Tasha saw a small child fall into the lake. Tasha did not know the child. Under the common law of most states, Tasha has a legal duty to take reasonable steps to assist the child if Tasha is able to help and such help will not jeopardize Tasha's well-being. a. true b. false

b

1. While hunting, Roger enters Adele's property without permission and is injured by falling into a ditch that was obscured by the underbrush. Under the common law, Adele is liable for Roger's injuries. a. true b. false

b

10. A misdemeanor is distinguished from a felony based upon a. the rules of evidence b. the length and place of possible imprisonment c. the burden of proof d. the type of intent

b

10. According to Immanuel Kant, the truth should be told, no matter the outcome. This is the idea behind what he called a. moral universalism b. the categorical imperative c. moral relativism d. the veil of ignorance

b

11. When a judge orders a criminal defendant to reimburse the victim, it is called a. reimbursement b. restitution c. restraint d. retribution

b

12. A binding process of resolving legal disputes by submitting them to a neutral third party is called a. mediation b. arbitration c. investigation d. enforcement

b

12. Congresswoman Sloan introduced a bill in the House of Representatives. If the bill is approved by the House committee specializing in that subject, the bill will go to a. a senate committee specializing in the subject matter of the propose legislation b. the full house c. a conference committee made up of representatives of both the house and senate d. the voters of her state for approval

b

13. The primary source of federal power to regulate trade between states is the a. supremacy clause b. commerce clause c. power of eminent domain d. takings clause

b

14. The Bill of Rights refers to a. the inalienable rights found at the beginning of the constitution b. the first ten amendments to the constitution c. a specific listing of individual rights found in the original text of the constitution d. a grouping of individual rights set both forth by the US supreme court shortly after the constitution was ratified by the states

b

15. Ikerd was entering the United States from a trip abroad when the Customs Service confiscated some goods she had purchased and brought back with her. The determination of whether the government is attempting to take property and what type of hearing the Customs Service must offer Ikerd is an analysis of a. the equal protection clause b. procedural due process c. the takings clause d. eminent domain

b

2. The United Nations Security Council, comprised of all its member nations, is the UN's lawmaking body. a. true b. false

b

2. There are four elements to a defamation case and the plaintiff in any kind of lawsuit must prove one of the four elements to prevail. a. true b. false

b

3. In a civil case, the plaintiff must prove the case beyond a reasonable doubt. a. true b. false

b

3. In order for a plaintiff to win a case involving intentional infliction of emotional distress, she must prove the defendant acted in an extreme and outrageous manner. a. true b. false

b

3. Utilitarian ethics holds that decisions should be made on the basis of practicality, and whatever action is most convenient should be favored. a. true b. false

b

3. Wilfred was driving too fast for the icy road conditions and hit Sally's car. Sally can sue Wilfred in criminal court. a. True b. False

b

4. Common law is a body of cases decided by legislatures. a. True b. False

b

4. If Gloria threw a rock that hit Merle, she is liable for an intentional tort of battery only if she intended to injure or harm Merle. a. true b. false

b

4. If interrogatories are being used as a form of discovery, the party being questioned must generally answer all the questions orally under oath. a. true b. false

b

4. Immanuel Kant was a German philosopher who was a proponent of utilitarian ethics. a. true b. false

b

5. In reaching their verdicts, appellate courts conduct trials and rehear all evidence. a. true b. false

b

5. What is ethics? a. always telling the truth b. the study of how people should behave c. following the law d. the rules by which you live your life

b

6. The power to create laws regulating international commerce is given jointly to Congress and the states under the U.S Constitution. a. true b. false

b

6. Which of the following is an accurate statement regarding Alternative Dispute Resolution (ADR)? a. it is a much slower process than litigation b. it keeps the parties involved talking rather than fighting c. it tends to be more expensive than litigation d. it only takes place in federal courts

b

7. Jurisdiction can be described as a. the study of law b. the authority of a court to hear and decide a particular type of case c. court cases involving the US constitution or a federal statute d. the burden of proof

b

7. The "takings clause" prevents the government from taking private property for any reason. a. true b. false

b

9. Under the laws of most states, a corporation cannot be held responsible for committing crimes. a. true b. false

b

9. When the Food and Drug Administration prohibits a certain drug from being marketed in the United States, this is a. private law b. an agency regulation c. legal negativism d. and executive order

b

10. Trein, Inc. entered into a one-year, $1 million contract with Mia, a sports celebrity, to promote Trein's products. E-presto Inc., a competitor of Trein, was interested in having Mia promote its products and knew of her contract with Trein. E-presto offered Mia a three-year, $5 million contract. Mia left Trein and signed with E-presto. Which statement is correct? a. trein is liable for tortious interference with a contract b. mia is liable for tortious interference with a contract c. e-presto is liable for torious interference with a contract d. both mia and e-presto are liable for tortious interference with a contract

c

10. When an appeal is filed with the U.S. Supreme Court, the Supreme Court a. must hear the case if the validity of a federeal statute is in question b. must hear the case if two or more US courts of appeals have decided the legal issue differently c. has discretion as to which cases it hears d. must hear all cases

c

11. An inmate in a state prison claims his United States constitutional rights prohibiting cruel and unusual punishment are being violated by the state correctional facility. This case a. may not be decided by a federal court since it involves a state facility b. must be decided by the state court where the inmate established residency before going to prison c. is a federal question case over which the federal courts have jurisdiction d. cannot be heard, as prisoners lose the right to sue

c

11. What are the two types of moral relativism noted in your text? a. absolute and relative b. individual and societal c. cultural and individual d. practical and theoretical

c

12. Jamal was recently hired as a sales representative for a pharmaceutical company. He notices that all the other sales reps "pad" their expense accounts by claiming meals with clients that never took place and then pocket the extra money. Jamal figures that since everyone else is cheating on their expense accounts, he might as well do the same. What ethics trap is Jamal falling into? a. following orders b. competition c. conformity d. lost in a crowd

c

12. The fraudulent conversion of property which is already in the defendant's possession is a. money laundering b. exclusion c. embezzlement d. trespassory taking

c

12. Which of the following would be an example of a civil lawsuit? a. george is being prosecuted for bank fraud b. the government has initiated an action against jeff for operating a motor vehicle under the influence of alcohol c. gretta hit rita in a bar during happy hour. rita is now suing for her injuries d. the district attorney is bringing ali to court for violating the city's keg ordinance

c

15. Don was standing in a cafeteria line holding a plate. Tim was upset with Don. Tim turned Don around and grabbed the plate out of Don's hand. Tim then held the plate up and threatened to break it over Don's head. Tim has committed a. a battery, but not an assault b. an assault but not a battery c. both an assault and a battery d. neither an assault nor a battery

c

19. Brady knows that the brakes on his car do not work, but he tells Celia, a potential buyer, that there are no problems with the car. On this assurance, Celia buys the car. On learning the truth, she may sue Brady for a. trade libel b. conversion c. fraudulent misrepresentation d. appropriation

c

7. Which of the following statements about torts is correct? a. a tortious act is always a criminal act b. a criminal act is always a tortious act c. a tortious act may also be a criminal act d. a tortious act is the same as a contract

c

8. The three branches of government in the United States are a. the executive, legislative, and administrative b. the administrative, legislative, and statutory c. the executive, legislative, and judicial d. the administrative, legislative, and international

c

8. When Shoes International went out of business after some serious and unethical accounting errors, its accounting company also closed its doors. 123Jump, a French company, was concerned that the unethical behaviors that occurred were an American problem, so it cancelled its business with another American accounting company and used a French one instead. Who was harmed by Shoes International's unethical behavior? a. only shoes international b. only shoes international and the accounting firm it used c. shoes international, the accounting industry, and the united states d. only 123Jump

c

9. Adam decided to play a practical joke on Linda, a co-worker. As Linda was leaving the office one night, Adam, wearing a mask, stepped out from behind some bushes. He pointed a handgun made out of licorice at her and demanded her purse. He then pushed the candy gun to her head and told her if she told anybody he'd kill her. Linda was very scared during the whole incident. She did not think it was funny when Adam pulled the mask off and took a bite out of the gun as he gave her the purse back. Which statement is correct? a. adam committed an assault but not battery b. adam committed a battery but not an assault c. adam committed and assault and a battery d. adam committed neither an assault nor a battery since he used a candy gun and was only playing a joke on linda

c

9. Notren, Inc., a U.S. company, and SWT, a Singapore company, entered into a contract under which SWT is to ship party supplies to Notren. One of the terms of the contract states, "Any disputes that arise under this contract will be resolved in the courts of Singapore." This contract term is a a. letter of credit b. choice of language cause c. choice of forum clause d. draft cause

c

10. The doctrine of precedent requires a. that the victim testify b. that the defendant testify c. a 12-member jury of the defendant's peers d. judges to base rulings on previous cases

d

11. Angela sued Tom for battery. Angela was awarded $30,000 for future medical expenses. Five years after the award, Angela realizes that her medical expenses will far exceed $30,000. Under the single recovery principle, a. Angela will be able to submit the additional medical bills to the court for payment. b. Tom will have to pay the additional medical bills. c. Tom will have a qualified privilege and only have to pay a portion of the additional medical expenses. d. Angela will have no recourse against Tom or the court for the medical expenses as long as the original award was reasonable.

d

11. The Environmental Protection Agency was investigating whether Exgrow, Inc. violated the Clean Air Act. Exgrow refused to give the EPA its computerized reports concerning pollution. To get the reports, EPA should use a. a stare decisis b. a de novo c. an excaliber d. a subpoena duces tecum

d

14. Written defamation is _____; oral defamation is _______. a. fraud; conversion b. conversion; fraud c. slander; libel d. libel; slander

d

16. Jim told his manager, Lana, that a co-worker, Diane, had been in prison for theft. Lana checked into the matter and when she learned that Diane had served time in prison for theft, she fired her. a. jim is liable to diane for defamation b. Jim is liable to Diane for defamation unless he can show a legitimate reason for having to tell Lana about Diane's prison history. c. Jim is liable to Diane for defamation only if she is a public figure. d. jim is not liable to diane for defamation

d

18. Jackie, an accountant, distributes a handbill to her business clients and potential customers accusing her competitor Ked of being a convicted thief. The statement is defamatory if a. a recipient of one of the handbills repeats it b. ked suffers emotional distress c. the statement is true d. the statement is false

d

20. Jenny Lee is an appliance salesperson. To make a sale, she asserts that a certain model of a Kitchen Helper refrigerator is the "best one ever made." This is a. fraud if the statement is not true b. fraud if jenny lee believes that this statement is not true c. fraud if jenny lee is stating her opinion, not the facts d. not fraud

d

6. The government itself prosecutes the wrongdoer in a case involving behavior so threatening that society outlaws it altogether. This kind of case involves a. procedural law b. private law c. civil law d. criminal law

d

6. Which of the following makes it illegal for U.S. companies and citizens to bribe foreign officials to influence a governmental decision? a. OSHA b. RICO c. CFAA d. FCPA

d

6. Which person argued that a corporate manager's primary responsibility is to the shareholders of the organization and that managers should make the company as profitable as possible while also complying with the law? a. John Rawls b. John Stuart Mill c. Immanuel Kant d. Milton Friedman

d

7. A treaty is said to be _____ when those who have drafted it agree that it is in final form. a. bound b. entered into force c. ratified d. adopted

d

7. The Occupational Safety and Health Administration promulgated a rule requiring warehouse employees to wear hardhats when in the vicinity of an operating forklift. The purpose of the hardhats is to protect employees from danger of falling objects. This rule is a. an executive order b. statute c. common law d. administrative law

d

7. Which of the following does NOT violate the Foreign Corrupt Practices Act? a. a US company bribes a govt official in order to influence a governmental decision b. a publicly traded company that does not engage in international trade fails to keep accurate company records c. a company pays an inspector to ignore the fact that the company does not have a valid permit d. a company allows a facilitating payment for a routine govt action

d

8. Federal jurisdiction based upon a "federal question" includes cases based on all of the following EXCEPT a. the US constitution b. a federal statute c. a federal treaty d. diversity

d

8. Historically, many countries had dissimilar and confusing intellectual property rules covering copyrights, trademarks, and patents. Which of the following served to clarify and harmonize the trade related aspects of intellectual property? a. GATT b. NAFTA c. CISG d. TRIPS

d

8. Shortly after Brian started to work at Trevit, Inc., a co-worker, Ann, began asking him out. Brian said no. Nevertheless, Ann persisted. One day Ann playfully but intentionally touched Brian "below the belt." Which statement is correct? a. ann defamed brian b. ann committeed the tort of trespass c. ann committed the tort of slander d. ann committed the tort of battery

d

9. A _______ is a ruling by the court that no trial is necessary because there are no essential facts in dispute. a. default judgment b. long-arm statute c. federal question d. summary judgment

d