Law 231 Test 1 (Ch. 1-4 and 17)

Some agencies monitor compliance with regulations by conducting _____ of business.

Inspections

Which of the following grants a court specific authorization or jurisdiction over out-of-state defendant due to the defendant's conduct or other circumstances?

State long-arm statute

Administrative law hearings are presided over by ____ judges

Administrative law

For which of the following is a license issued by a federal, rather than a state, agency?

Broadcast frequencies The Federal Communications Commission (FCC) issues licenses for use of broadcast frequencies. Administrative agencies at the state level often issue occupational licenses and regulate professionals such as attorneys and physicians, as well as occupations such as those of hairstylists and contractors.

Which of the following is the most common form of commercial speech?

Advertising of product or service In relative terms, corporations spend far more on advertising their own products and services than any other form of speech

The party petitioning or asking for an appeal is called the ___________.

Appellant

Under the American legal system, subject to some exceptions, costs of litigation regarding both the plaintiff and the defendant

Are paid for by each side, with the plaintiff and defendant paying for their own legal costs Under the American system, both sides generally bear their own costs of litigation unless the court orders otherwise.

An administrative law judge is typically an _____ who is employed by the agency to adjudicate disputes.

Attorney

Congress authorizes the National Highway Safety Administration to regulate any trucking company engaged in interstate commercial activity. Which enumerated power is Congress exercising?

Commerce Congress has the right to regulate instrumentalities of interstate business such as trucks that use interstate highways.

Understanding the fundamentals of constitutional law is an important part of comprehending the structure of the government and the restrictions on government powers. Application of the Constitution in a business environment may impact operations and informed decision making. The following exercise requires you to choose the correct source of federal power for specific laws passed by Congress.

Commerce Power -Law banning racial discrimination at hotels Judicial Review -Federal law invalidated as unconstitutional Tax and Spend Power -Federal law with conditions on highway funds Preemption -Federal automobile safety regulation

Marlowe is a customer at General Store. he is injured while attempting to lift a heavy lawn ornament off a display shelf at the store. Marlowe sues General Store, claiming that the ornament was not sufficiently secured. If Marlowe wishes to obtain an oral statement from a witness who was at the scene of the incident, what is the appropriate method of discovery?

Depositions Depositions are oral question and answers taken fro witnesses in the case.

Depositions take place during the ___________ stage of litigation.

Discovery Discovery is the legal process for the orderly exchange of information and evidence between parties involved in litigation.

The _____ is the principle that similar cases with similar facts and issues should have the same judicial outcome

Doctrines of stare decisis The doctrine of stare decisis, one of the most important concepts in American law, is the principle that similar cases with similar facts and issues should have the same judicial outcome. This allows individuals and businesses to have some degree of confidence that the law will remain reasonably constant from year to year and court to court.

Each act of federal legislation or regulation must come from within one of the very specific ______ powers in the constitution.

Enumerated Powers granted to the three branches of government are known as enumerated powers and are typically limited in scope. Federal exercise of power must be specifically authorized by the Constitution.

Specific powers granted to the three branches of government in the Constitution are known as ________ powers.

Enumerated Powers granted to the three branches of government are known as enumerated powers and are typically limited in scope. Judicial review is a power of the judicial branch, not part of Congress's powers.

T or F: Statutory law is the foundation for all other law in the United States and is the supreme law of the land.

False Constitutional law is the foundation for all other law in the United States and is the supreme law of the land.

T or F: Courts are highly critical of agency decisions involving how and when an agency enforces a regulation.

False Courts give great deference to agency decisions concerning its regulations

T or F: Wilma hires Fred, a contractor, to paint her house. When Fred finishes, Wilma refuses to pay him and states that the quality of the job done is not satisfactory. if Fred sues Wilma for breach of contract in a trial court, Fred would be be the defendant.

False Fred would be the plaintiff

The state trial court in Nevada issued a decision in which a party was found guilt of fraud. Should a case arise in the future with the same basic fact situation, Nevada courts will be bound by precedent to follow the reasoning and decision of this prior decision.

False It is important to remember that state trial court decisions are binding only on the parties involved in the dispute. Trial court decisions do not set precedent for future disputes or parties. Only appellate-level courts set precendent

T or F: State courts cannot have concurrent jurisdiction with federal courts.

False More than one court may have jurisdiction over the same case. This is called concurrent jurisdiction. State courts may have concurrent jurisdiction with other state courts or federal courts.

T or F: Fundamentally, state trial courts rule on certain points of state law and render a decision. That decision is binding on the parties, and on everyone else.

False That decision is binding on parties, but on no one else.

T or F: When a remedy at law (i.e., money damages) is fully sufficient to bring justice, equitable remedies are permitted

False When a remed at law is inadequate, an injured party may also obtain a remedyy at equity. When a remedy at law is fully sufficient to bring justice, equitable remedies are not permitted.

Proposed agency rules are published in the _______.

Federal Register

Which of the following sources of law has a higher priority than the others in the hierarchy of primary sources of federal and state law

Federal administrative law Primary sources of law are applied consistent with a hierarchy in which one source may trump another source if the two sources conflict. This is preemption. According to the hierarchy of primary sources of federal and state law, federal administrative law has a higher priority than federal common law, state administrative law, and state common law.

The Constitutional right of free speech is found in which of the following amendments?

First Amendment The First Amendment includes the rights of freedom of speech, press, and expression, among others.

Which of the following are potential advantages of alternative dispute resolution? I. Possible to preserve the business relationship. II. Expertise for complex industry-specific disputes. III. Held in private with no public record required. IV. Cost-effective.

I, II, III, and IV.

Which of the following are potential advantages of alternative dispute resolution? I. Reduced costs. II. Less time consuming. III. Held in a public forum. IV. Preserving business relationship

I, II, and IV ADR is held in private

Which of the following are not potential advantages of alternative dispute resolution? I. Reduced costs. II. Expertise. III. Less time consuming. IV. Held in a public forum

IV only

Which of the following is true of subject matter jurisdiction on the basis of diversity of citizenship?

In a diversity-of-citizenship case, a federal court will apply state law In a diversity case, a federal court will apply state law because the dispute is likely to involve issues governed by state statutes or common law. The requirements for diversity of citizenship case are: 1.) opposing parties in the lawsuit are citizens of different states or one part is a citizen of a foreign country 2.)the amount in controversy exceeds $75,000 and does not involve a decree for divorce, alimony or child custody

Attorneys who are part of the executive or midlevel management team of large companies are known as

In-house counsel For larger companies or companies that have extraordinary regulatory burdens (such as complying with securities or patent laws), counsel may very well be part of the executive or midlevel management team. These attorneys are referred to as in-house counsel and usually have the title "general counsel" at the executive management level (e.g., vice president and general counsel).

Marlowe is a customer at General Store. He is injured while attempting to lift a heavy lawn ornament off of a display shelf at the store. Marlowe sues General Store, claiming that the ornament was not sufficiently secured. If Marlowe wishes to obtain written answers to questions from General Store's manager about the condition of the display case, what is the appropriate method of discovery?

Interrogatories Interrogatories are written questions answered by one of the litigants involved in the case.

Which of the following is not an enumerated power of Congress?

Judicial review Powers granted to the three branches of government are known as enumerated powers and are typically limited in scope. Judicial review is a power of the judicial branch, not part of Congress's powers.

A family court that hears only divorce and child-related matters would be said to have _________ jurisdiction.

Limited

Two parties agree to hire a neutral third party who is trained to negotiate a resolution to the dispute, but no decision is rendered by the neutral party. This form of ADR is ________.

Mediation This is mediation where a trained neutral third party tried to negotiate a solution.

The complaint and summons and answer are filed during the ______ state of litigation.

Pleadings The complaint sets out the plaintiff's allegations and the answer provides the defendant's responses to the allegations.

What step comes directly prior to public comment in the rulemaking process?

Proposed rule publication Publication places the public on notice and then the public comment is permitted.

Which of the following is not a major source of administrative law?

Public opinion

Congress passes a law that limits late fees on credit cards. Big Bank challenges the law as an unconstitutional exercise of federal power. In determining the constitutional exercise of federal power. In determining the constitutionality of the law, which standard of review will the court apply?

Rational basis Because the government action was purely economic, the court would apply the rational basis standard, and thus the government need only show that its action advanced some legitimate government objective.

Congress passes a law that requires all licensed stockbrokers to pay into a client security fund that is made available for consumers who were victims of broker fraud. Several stockbrokers challenge the law as an unconstitutional exercise of federal power. In determining the constitutionality of the law, which standard of review will the court apply?

Rational basis Because the government action was purely economic, the court would apply the rational basis standard, and thus the government need only show that its action advanced some legitimate government objective.

In the Dread Pirate Roberts case, U.S. Ulbricht, 31F. Supp. 3D 54D (S.D.N.Y. 2014), one of the issues that the court addressed was whether bitcoin is currency for purposes of the money laundering statutes. In this case, the court

Ruled that someone can violate the money laundering statute by using bitcoin The court found that the money laundering statute is broad enough to encompass use of Bitcoins in financial transactions. Congress intended to prevent criminals from finding ways to wash the proceeds of criminal activity by transferring proceeds to similar or different items that store significant value. One can money launder using Bitcoin.

Administrative agencies exercise their policymaking functions through ______.

Rulemaking

Which of the following is an example of equitable relief?

Specific performance In some cases, a party will not necessarily be fully or even partially compensated through money damages. In such a case, a court may award equitable relief instead of (or in addition to) a remedy at law. Most commonly, equitable relief can include an injunction or restraining order and specific performance. The remedy of specific performance is illustrated in Case 1.4, Wilcox Investment in Chapter 1.

To have _____________ to file a lawsuit, the party must have suffered an actual injury in fact.

Standing

Which constitutional clause allows Congress to preempt state laws if necessary?

Supremacy Clause Congress has the express power to override state laws through preemption under the authority of the Supremacy Clause.

Under the Federal Arbitration Act (FAA), a court may set aside the award of an arbitrator if ___________________.

The arbitrator exceeded his or her explicit powers The FAA outlines four reasons for setting aside of a private arbitration award by a court: (1) the arbitration involved some degree of corruption or fraud, (2) the arbitrator exhibited inappropriate bias, (3) the arbitrator committed some gross procedural error that prejudiced the rights of one party, and (4) the arbitrator exceeded his or her explicit powers or failed to use them to make an appropriate final award.

Under the Federal Arbitration Act (FAA), which of the following is not a valid reason for a court to set aside a private arbitration award?

The arbitrator was chosen through the American Arbitration Association.

Which of the following is not part of the Central Hudson Gas test?

The restriction does not include political speech by the corporation Central Hudson Gas does not address political speech by corporations

Which of the following is the primary purpose of state long-arm statues?

To authorize personal jurisdiction over nonresident defendants. A court's jurisdiction must be authorized by a state long-arm statute that grants the court specific authorization over defendant due to the defendant's conduct or other circumstances. As the name implies, long-arm statutes are intended to allow a court to "reach" into another state and exercise jurisdiction over a nonresident defendant.

T or F: A business that is subject to an agency's jurisdiction is required to turn over documents relevant to determining compliance with a particular rule.

True Agencies may require businesses to keep this kind of documentation

T or F: The powers of an administrative agency to carry out the enabling statute are exercised through rulemaking, enforcement, licensing and adjudication.

True All of these powers are generally given to an agency to carry out its duties

T or F: Decisions of trial courts are reviewed by appellate courts

True Appellate courts review the decisions of trial courts and have the authority to overturn decisions if they are inconsistent with the current state of the law.

T or F: Civil laws are designed to compensate parties (including businesses) for losses as a result of another's conduct

True Civil laws are designed to compensate parties (including businesses) for losses as a result of another's conduct. These losses are known as damages. Criminal laws are a protection of society, and the violation of criminal laws results in penalties to the violator such as fines or imprisonment.

T or F: Criminal laws are a protection of society, and the violation of criminal laws result in penalties to the violator such as fines or imprisonment

True Criminal laws are a protection of society, and the violation of criminal laws results in penalties to the violator such as fines or imprisonment.

T or F: Venue is a determination of the most appropriate court location for litigating a dispute.

True Two or more courts will sometimes have jurisdiction over the very same matter, but it might be more appropriate from a fairness perspective to hear the case in a particular location.

A discretionary order issued by the Supreme Court and other federal courts granting a request to argue an appeal is called ________________.

Writ of certiorari