Legal Environment of Business Test #1 Questions

T or F? Equal protection means that the government must treat similarly situated individuals in a similar manner.

T

T or F? In mediation, the mediator proposes a solution that includes what compromises are necessary to reach an agreement.

T

T or F? Judges use precedent when deciding a case in a common law system?

T

T or F? Laws that govern business have their origin in the U.S. Constitution?

T

T or F? Local governments, including cities, can exercise police powers.

T

T or F? Procedural due process requires that any taking of a person's life, liberty, or property by government must be made fairly.

T

T or F? The Bill of Rights protects individuals against types of interference by the states.

T

T or F? The checks and balances in the U.S. Constitution prevent any one branch of government from exercising too much power.

T

T or F? The minimal acceptable standard for ethical behavior is compliance with the law.

T

T or F? To have standing to sue, a party must have been harmed or have been threatened with harm by the action about which he or she complains.

T

T or F? Under the Constitution, the states retain all powers not specifically delegated to the federal government.

T

T or F? When there is a direct conflict between a federal and a state law, the state law is rendered invalid.

T

T or F? A court's direction to a party to do or to refrain from doing a particular act is a rescission.

F

T or F? A federal form of government is a confederation of independent states with a central government of very limited powers.

F

T or F? Managers must apply different standards to themselves than they apply to their employees.

F

T or F? The Bill of Rights confers absolute rights, not subject to interpretation by the United States Supreme Court.

F

T or F? A court may depart from a precedent if the court decides that the precedent should no longer be followed.

T

T or F? A defendant is a person against whom a lawsuit is brought.

T

T or F? A law that restricts a fundamental right does not violate substantive due process if it promotes a compelling state interest.

T

T or F? Business ethics focuses on ethical behavior in the business world.

T

The case of Argyle Clothing Corporation v. Brummel is heard in a Connecticut court with original jurisdiction. The case of Chuck-a-Block v. Dunderhead, Inc. is heard in a Connecticut court with appellate jurisdiction. The difference between original and appellate jurisdiction is whether a. a case is being heard for the first time. b. the court is exercising a new type of jurisdiction. c. the parties' legal arguments are innovative. d. the subject matter of a case involves new facts.

a. a case is being heard for the first time.

In Harry's suit against Irma, the parties meet before going to trial, and each party's attorney argues the party's case before the other party. A third party renders an opinion as to how a court would likely decide the dispute. This is a. a mini-trial b. arbitration c. a summary jury trial d. early neutral case evaluation

a. a mini-trial

The Uniform Commercial Code has been adopted, at least in part, in a. all states. b. forty-five states. c. twenty-five states d. no states

a. all states

Beachside City enacts an ordinance that bans the distribution of all printed materials on the streets. Carl opposes the city's latest "revenue-enhancing" measure and wants to protest by distributing handbills. In his suit against the city, a court would likely hold the printed materials ban to be a. an unconstitutional restriction of speech. b. constitutional under the First Amendment. c. justified by the need to protect individual rights. d. necessary to protect national interests.

a. an unconstitutional restriction of speech.

Jim files a suit against Kary. Before going to trial, the parties meet, with their attorneys to represent them, to present their dispute to a third party who is not a judge but who renders a legally binding decision. This is a. arbitration b. litigation c. mediation d. negotiation

a. arbitration

Cassidy wants to appeal his case against Deli Snax Corporation to the United States Supreme Court. Cassidy must ask the Court to issue a writ of a. certiorari. b. jurisdiction. c. standing. d. venue.

a. certiorari

Voters in North Carolina approve a new state constitution, after which the Ocean City Council passes new ordinances, the North Carolina Department of Parks and Recreation issues new rules, and the Ocean City Chamber of Commerce sends out new instructions. Sources of law do not include a. instructions issued by the Ocean City Chamber of Commerce. b. ordinances passed by the Ocean City Council. c. rules issued by the North Carolina Department of Parks and Recreation. d. state constitutions passed by popular vote.

a. instructions issued by the Ocean City Chamber of Commerce.

In Sales Distribution Corp. vs. Consumer Products Co., the court decides that a precedent is incorrect or inapplicable. The court a. may rule contrary to the precedent. b. must apply the precedent. c. must refuse to decide the particular case. d. must "stand on the decided case."

a. may rule contrary to the precedent.

Alaska passes a state law that violates the U.S. Constitution. This law can be enforced by a. no one. b. the federal government only. c. the state of Alaska only. d. the United States Supreme Court only.

a. no one.

Oregon, like other states, may regulate private activities to protect or promote the public order, health, safety, and general welfare under its a. police powers. b. taxing powers. c. spending powers. d. supreme powers.

a. police powers

A Minnesota state statute restricts certain kinds of advertising to protect consumers from being misled. a court would likely hold this statute to be a. an unconstitutional restriction of speech. b. constitutional under the First Amendment. c. justified by the need to protect individual rights. d. necessary to protect national interests.

b. constitutional under the First Amendment.

Bess runs Creditors Asset Recovery. She recruits clients by misrepresenting the facts and pretending to be licensed in various occupations in Michigan. Bess's conduct most likely warrants a. an ethical admonishment but no legal sanctions. b. ethical and legal sanctions. c. no sanctions, but no praise d. praise for her aggression in recovering the assets of "deadbeat" debtors.

b. ethical and legal sanctions.

To assist in detecting illegal bribes, Cut Rite Contractors, Inc., and all U.S. companies, must a. conceal financial records that reveal past bribes. b. keep records that "accurately and fairly" reflect financial activities. c. make bribes through third parties rather than directly to officials. d. permit payments to foreign officials that are unlawful in that country.

b. keep records that "accurately and fairly" reflect financial activities.T

Jon, a law enforcement official, monitors Kelsey's Internet activities - e-mail and Web site visits - to gain access to her personal financial data and student information. This may violate Kelsey's right to a. equal protection of the law. b. privacy c. procedural due process d. substantive due process

b. privacy

Ruth files a suit against SyCo Products, Inc. SyCo responds that even if Ruth's statement of the facts is true, according to the law SyCo is not liable. This is a. a counterclaim b. a motions for summary judgment c. a motion to dismiss

c. a motion to dismiss

The Constitution provides that no person shall be deprived of "life, liberty, or property without due process of law." Under this clause, "persons" include a. animals and other "beings in nature." b. buildings and other "manmade creations." c. corporations and other "legal persons." d. none of the choices.

c. corporations and other "legal persons."

Ethical standards would most likely be considered violated if Retail Mart Corporation deals with company in a developing nation that a. agrees to produce goods at Retail Mart's desired price. b. goes unnoticed by "corporate watch" groups. c. exploits its workers. d. pays its workers less than the U.S. minimum wage.

c. exploits its workers.

The "common law" is referred to as the common law because a. it is the law that is familiar to most of us. b. it was originally applied only to commoners. c. it was more or less uniform throughout England. d. the law was issued by courts of common pleas.

c. it was more or less uniform throughout England.

Applied Business Corporation makes and markets its products nationwide. Under the stakeholder approach, to be considered socially responsible when making a business decision, Applied must take into account the needs of a. its consumers, the community, and society only. b. its employees and owners only. c. its employees, owners, consumers, the community, and society. d. no one.

c. its employees, owners, consumers, the community, and society.

Seth files a suit against Trent. Before going to trial, the parties, with their attorneys, meet to try to resolve their dispute. A third party helps them to reach an agreement. This is a. arbitration b. litigation c. mediation d. negotiation

c. mediation

When Overseas Sales, Inc., based in New York, does business internationally, the firm may be subject to international law. The sources of this law include a. the laws of individual nations only. b. treaties and international organizations only. c. the laws of individual nations, and treaties and international organizations. d. none of the choices.

c. the laws of individual nations, and treaties and international organizations.

The U.S. Congress passes a new federal statute that sets different standards for the liability of businesses selling defective products. This statute applies a. only to matters not covered by state law. b. only to those states that adopt the statute. c. to all of the states. d. to none of the states.

c. to all of the states.

A Rhode Island statute imposes a prison term, without a trial, on all street vendors who operate in certain areas. A court would likely hold this statute to be a. constitutional under the due process clause. b. constitutional under the equal protection clause. c. unconstitutional under the due process clause. d. unconstitutional under the equal protection clause.

c. unconstitutional under the due process clause.

Mike, an advocate of a certain religion, publishes an article in New Times magazine insisting that Congress base all federal law on his religion's principles. The First Amendment guarantees Mike's freedom of a. religion only b. speech only c. the press only d. religion, speech, and the press

d. religion, speech, and the press

Network Corporation files a suit against Omega, Inc., alleging that Omega breached a contract to sell Nett a computer system. Network is a. the appellant. b. the appellee c. the defendant d. the plaintiff

d. the plaintiff

Levi, a citizen of Maryland, obtains a federal license to operate a commercial fishing boat in Chesapeake Bay. The Maryland state legislature enacts a law that bans all commercial fishing in the bay. The state law most likely violates a. no provision in the U.S. Constitution. b. the commerce clause c. the due process clause. d. the supremacy clause

d. the supremacy clause

DeLouse Plastics Corporation pays its executives an excessive amount relative to other employees and to what executives at competitive companies are paid. This is most likely to be challenged as a. illegal and unethical b. illegal only c. neither illegal nor unethical d. unethical only

d. unethical only

In making decisions for United Merchandising Company, Vance uses a cost-benefit analysis. This is part of a. duty-based ethics b. Kantian ethics. c. the principle of rights d. utilitarianism

d. utilitarianism

Beth is a victim of Carlyle's violation of a criminal law. Criminal law is concerned with a. the prosecution of private individuals by other private individuals. b. the prosecution of public officials by private individuals. c. the relief available when a person's rights are violated. d. wrongs committed against the public as a whole.

d. wrongs committed against the public as a whole.