Business law midterm

Elinor sells Cathy a horse for $2,000. When Elinor goes to the bank to deposit Cathy's check, the check bounces. Elinor is furious and files suit against Cathy. Elinor probably filed her suit in

A small claims court

In studying the legal environment of business, Professor Dooley's students also review ethics in a business context. Ethics includes the study of what constitutes

Fair or jut behavior

A crime can be committed only against persons.

False

Adhering strictly to all business laws is all that is necessary to fulfill all business ethics obligations.

False

All states have intermediate appellate courts.

False

Bribing foreign officials to obtain favorable business contracts is not a crime.

False

Counterfeiting is robbery.

False

Federal courts are superior to state courts.

False

For a tort to be considered intentional, the tortfeasor must have an evil or harmful motive.

False

In some states, misdemeanors are punishable by imprisonment for up to 10 years.

False

Larceny relies on fear and force

False

Small claims courts hear both civil and criminal cases.

False

Statements made by in judicial proceedings are NOT privileged communications and may be the basis for defamation.

False

The courts consider legitimate competitive behavior permissible only if it does not result in the breaking of a contract.

False

The federal government and the states have the same constitution.

False

The legality of an action is always clear.

False

To avoid liability for negligence, a business owner must protect its patrons against all risks.

False

To commit an intentional tort, one person must intend to harm a certain person.

False

Under the theory of negligence, the duty of care requires a careless act.

False

Very few states have limited the amount of damages that can be awarded in tort cases.

False

Laney is a resident of Maine. Delacorte is a Canadian. They dispute the ownership of Petite Isle, an island in North Rapids River on the border between Canada and the United States. The diversity of the parties' citizenship could serve as a basis for

Federal jurisdiction

In Lewis v. Motor City Cars & Trucks, a state supreme court held that a minor could cancel a contract for the sale of a car. A lower court in the same state may depart from this precedent if the court decides that the precedent

Is incorrect or inapplicabel

Housemate, Inc., makes and sells a variety of household products. With a fair amount of certainty, Housemate's decision makers can predict whether a given business action would be legal in

Many situations

John is sales manager for Kleen 'N Brite Products, Inc. Compared to John's personal activities, his business activities most likely involve

More complex ethical issues

Liz trespasses on Mega Corporation's property. Through the use of reasonable force, Mega's security guard Ned detains Liz until the police arrive. Mega is liable for

None of the choices

Business ethics is not more complicated than personal ethics.

True

Corporations, like persons, can be liable for crimes.

True

Ethics is concerned with the fairness or justness of an action.

True

If it can be shown that a trespass to land was warranted, a complete defense exists.

True

In order to truly understand our legal system, it is important to understand the origins of the common law tradition.

True

Obeying the law does not necessarily fulfill all ethical obligations.

True

One purpose of criminal sanctions is to deter others from committing similar crimes in the future.

True

State constitutions are supreme within their respective borders.

True

Statutes are laws enacted by Congress and the state legislatures and comprise one of the sources of American law.

True

The purpose of the exclusionary rule is to deter police from misconduct.

True

Sandy, a resident of Illinois, wants to file suit against Carl, a resident of Kansas, over Carl's failure to pay Sandy for work on his house. The amount in dispute is $15,000. Under diversity of citizenship requirements

a federal court cannot take jurisdiction because the amount in controversy is less than $75,000.

Louis—larger and stronger than Mica—threatens to hit Mica before hitting and injuring him. Mica files a suit against Louis for assault and battery. Mica will most likely recover for

assault and battery

As a judge, Bonnie applies common law rules. These rules develop from

court decisions

Fresh Harvest Company, which is based on Georgia, packages and sells vegetables. Jack, who is a resident of North Carolina, buys a Fresh Harvest product, eats it, and suffers severe food poisoning. Jack wants to file a suit against Fresh Harvest. The diversity of citizenship between these parties means that

federal and state courts have concurrent jurisdiction

Jack and Jill, citizens of Vermont, are involved in a case related to the adoption of their child. The Vermont state courts

have exclusive jurisdiction over this case.

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

in rem jurisdiction

Megan, a resident of Ohio, runs a red light in Texas and hits Sarah, a Texas resident. Sarah files suit against Megan. The statute that allows the Texas court to exercise jurisdiction over Megan is called a(n)

long arm statute

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

no one

Any decision by the management of Fast-Food Franchise Corporation may significantly affect its

operators, owners, suppliers, the community, or society as a whole.

Judge Julia decides that the precedent for the case she is hearing is no longer correct due to technological changes. She overturns the precedent when she decides the case. It is most likely that her case will

receive a great deal of publicity

Owen is a federal judge whose judicial decisions are part of case law, which does not include interpretations of

sound bites in the media

Ludwig receives from Milo a marimba stolen from Nadine. To be criminally liable, Ludwig must know

that the marimba is stolen and Ludwig must intend to keep it.

A provision in the California state constitution conflicts with a provision in the U.S. Constitution. If challenged

the U.S. Constitution, not the state provision, will be enforced.

Jake is charged with embezzlement. Embezzlement may be committed without

the use of force or fear

David, the chief accounting officer of Tension Fencing Corporation, wants to be sure that all the company's accounts are legal and ethical. Sometimes, however, he is unsure exactly what is legal and what is illegal. David should

try his best to not do anything illegal and keep documentation showing that he always acts in good faith.