Mid-term 1 of BUS 201

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1) The judges who make up the U.S. Supreme Court are known as ________. A) deputies B) justices C) chancellors D) advocates E) barristers

B) justices

42) Which of the following statements is true of taking depositions? A) It is the most expensive method of discovery. B) It is the only method of discovery that uses res judicata. C) It is the most common version of interrogatories. D) It is the only method of discovery that uses voir dire. E) It is the least revealing method of discovery.

A) It is the most expensive method of discovery.

24) Which of the following statements is true of arbitration? A) The decisions arising from arbitration are binding on the disputing parties. B) The record of proceedings is available to the press and others. C) The disputing parties resolve all of the matters of contention by themselves in arbitration, without the intervention of a third party. D) The primary function of arbitration is to serve as a prelude to litigation. E) The outcomes of an arbitration procedure cannot be imposed on the disputing parties.

A) The decisions arising from arbitration are binding on the disputing parties.

36) Which of the following is one of the primary reasons for the increase in the number of mediations? A) The disputing parties in the mediation process retain control over when to settle. B) Outcomes of mediations are legally binding. C) Lawyers play a more active role in the mediation process when compared to arbitration. D) The mediation process involves a mediator and only one of the disputing parties. E) The mediators in the mediation process are selected by the Supreme Court

A) The disputing parties in the mediation process retain control over when to settle.

22) Which of the following is the most accurate listing of dispute resolution options from highest cost to lowest cost? A) Trial, Arbitration, Negotiated Settlement B) Mediation, Arbitration, Trial C) Arbitration, Focus Group, Trial D) Negotiated Settlement, Focus Group, Trial E) Negotiated Settlement, Trial, Mediation

A) Trial, Arbitration, Negotiated Settlement

13) Which of the following is a violation of the free exercise clause of the First Amendment? A) a school preventing its students from forming prayer groups B) an employer preventing an employee from speaking his opinion about the new employee regulations C) a state government procuring a person's home to build a new local roadway without paying any money for the home D) a newspaper being prevented from printing an unflattering, but truthful, article about the governor of a state E) a state law prohibiting an individual from keeping a gun in his home

A) a school preventing its students from forming prayer groups

57) Matt damages Cal's house in a motorcycle accident. Cal incurs $120,000 in property damages. To recover his losses, he wants to sue Matt. In this scenario, Cal is most likely to file the initial lawsuit in ________. A) a state trial court B) a small claims court C) the U.S. Supreme Court D) a federal district court E) a federal appellate

A) a state trial court

3) The element of standing to sue that requires a plaintiff to allege a personal stake in the resolution of a controversy prevents the plaintiff from ________. A) asserting the rights of the general public or of a group of which he or she is not a member B) petitioning for a writ of certiorari C) taking advantage of discovery procedures in the determination of the controversy in the presence of third-party defendants D) using voir dire during jury selection E) using peremptory challenges during jury selection

A) asserting the rights of the general public or of a group of which he or she is not a member

37) Standing to sue is determined ________. A) at the outset of the litigation B) at the discovery phase of the litigation C) by the outcome of the litigation D) by the filing of a motion in limine E) using voir dire during jury selection

A) at the outset of the litigation

44) In the pretrial phase of litigation, if a party fails to produce relevant, requested evidence, the party seeking the information is most likely to ________. A) file a motion to compel discovery B) file a request for an admission C) file a petition for a writ of certiorari D) request for a voir dire examination E) file a motion for a summary judgment

A) file a motion to compel discovery

18) The Second Amendment consists of the ________. A) right to possess guns B) right to free commercial speech C) right to free speech D) right to free publishing E) right to respect any establishment of religion

A) right to possess guns

5) In the pretrial phase of litigation, the argument used by a defendant to dismiss a suit on the basis of expiration of the time limit during which the defendant is subject to suit is usually referred to as ________. A) statute of limitations B) res judicata C) summary judgment D) request for peremptory challenge E) voir dire

A) statute of limitations

26) ________ is the term used when a dispute has been referred to arbitration. A) submission B) writ of certiorari C) de novo review D) negotiation E) certification

A) submission

48) Angelo files a lawsuit against Franz alleging that Franz damaged his property. Esther, a judge, has reviewed the case and believes that the lawsuit between Angelo and Franz completely lacks any merit. She is convinced that the suit should not continue. In this case, Esther is most likely to ________. A) terminate the litigation process on her own initiative B) file a request for admission C) file a motion for judgment on the pleadings D) wait until Franz files a motion to terminate the litigation process E) seek to withdraw the court summons

A) terminate the litigation process on her own initiative

50) A lawsuit is initiated at the ________ level in the court system. A) trial court B) U.S. Supreme Court C) appellate court D) constitutional court E) state supreme court

A) trial court

30) 66. Books-R-Us, Corp., a publisher, faces issues on various fronts like accounting discrepancies, false advertisement, and retailer relations. Books-R-Us wants to settle its disputes in a quick and cost-effective manner. Which of the following processes is Books-R-Us, Corp. most likely to choose? A) Negotiation B) Arbitration C) Mediation D) Litigation E) Settlement

B) Arbitration

14) Commercial speech is most accurately described by which of the statements below? A) Commercial speech is currently protected by the Second Amendment. B) Freedom of speech for individuals may be more extensive than the rights of corporations. C) The public interests served by freedom of expression protect the listener but not the speaker. D) Commercial speech has been protected since the inception of the Bill of Rights. E) The government cannot put any limit on the freedom of speech of corporations.

B) Freedom of speech for individuals may be more extensive than the rights of corporations.

31) Which of the following statements is true of the Federal Arbitration Act? A) It guarantees that all arbitration clauses are irrevocable under any circumstances. B) It covers any arbitration clause in a contract that involves interstate commerce. C) It allows state laws to prevent arbitration of disputes even if the disputing parties are engaged in or affect interstate commerce. D) It strictly nullifies the right of the Equal Employment Opportunity Commission to litigate if an employee signed an arbitration clause. E) It ensures that arbitration is used only in federal cases and not in state cases.

B) It covers any arbitration clause in a contract that involves interstate commerce.

12) Which of the following statements is true of freedom of speech? A) It solely exists to protect popular ideas. B) It covers both verbal and written communications. C) It does not cover conduct or actions considered symbolic speech. D) Its protection relates to private action. E) It is possible to challenge a statute limiting speech only if a person's own speech is prohibited.

B) It covers both verbal and written communications.

21) Which of the following statements is true of the due process clause? A) It prevents individuals from acting in an unreasonable manner. B) It does not prevent private corporations from acting in an arbitrary manner. C) It describes the principle of sovereignty of government organizations. D) It allows the government to condemn and take specific private resources for money under the power called eminent domain. E) It is stated in the Second Amendment of the U.S. Constitution.

B) It does not prevent private corporations from acting in an arbitrary manner.

25) Which of the following would not be considered a benefit of arbitration? A) Privacy B) Limited discovery C) Flexibility D) Low cost involved E) Swift resolution

B) Limited discovery

49) Which of the following statements is true of the role of jurors in U.S. courts? A) They present the evidence and arguments to the judges. B) They determine the facts from conflicting evidence. C) They apply the law to the facts of a case. D) They apply constitutional limitations and guarantees. E) They determine the rules of law relevant to a case.

B) They determine the facts from conflicting evidence.

32) The effect of the Federal Arbitration Act on state laws is that state laws ________. A) strictly nullify the right of the Equal Employment Opportunity Commission to litigate if an employee signed an arbitration clause B) cannot prevent arbitration of disputes if the disputing parties are engaged in interstate commerce C) see arbitration as a necessary prelude to litigation D) never consider an arbitrator's award as legally binding and enforceable E) always favor conciliation over arbitration

B) cannot prevent arbitration of disputes if the disputing parties are engaged in interstate commerce

6) According to Roger Fisher, William Ury, and Bruce Patton, any successful negotiation must conclude with the disputing parties making realistic ________. A) communications B) commitments C) deviations D) assumptions E) aberrations

B) commitments

41) If a defendant does not respond to a complaint by the date provided in the summons in any way, the court is most likely to enter an order of ________. A) voir dire B) default C) judicial restraint D) stare decisis E) discovery

B) default

52) When a state trial court has general jurisdiction, ________. A) it should have a jury present in both civil and criminal cases B) it has the power to hear any type of case C) it cannot try criminal cases D) it can issue writs of certiorari to the general population E) it has the power to review judicial errors charged against a federal court

B) it has the power to hear any type of case

46) Terrell files a complaint against Chad for negligence with the court clerk. After Terrell receives an answer from Chad in response to the summons, Terrell believes that he can win based solely on his original complaint and Chad's answer. In this case, Terrell is most likely to file a ________. A) motion to dismiss for failure to state a cause of action B) motion for a judgment on the pleadings C) motion for a directed verdict D) motion for a summary judgment E) motion in limine

B) motion for a judgment on the pleadings

59) Essentially, the judicial power of the federal courts extends to matters involving ________. A) correction of judicial errors charged against a state trial court B) questions of federal law C) erroneous rulings made by arbitrators in disputes involving interstate commerce D) lack of diversity of citizenship E) disputes among citizens of the same state

B) questions of federal law

56) In determining the jurisdiction of a corporation, what two factors are considered? A) the state where most of its employees live and the where its chief executive officer lives B) the state of incorporation and the state where it has its principal place of business C) the state where its chief executive officer lives and the state where its chief legal officer lives D) any state that the corporation declares as being its hometown and the state where the majority of its employees live E) any state where its stakeholders live and the state where it has its principal place of business

B) the state of incorporation and the state where it has its principal place of business

43) The usual rule in the scope of discovery is that the information sought in discovery is discoverable and an objection is overruled as long as the information ________. A) will be indicative of guilt or innocence of a party in a trial B) will lead to evidence admissible during a trial C) will be important enough to both of the disputing parties during a trial D) is protected by lawyer-client confidentiality E) is a clear and convincing evidence of negligence

B) will lead to evidence admissible during a trial

53) What is the general name for the courts that review decisions of a lower court? A) Criminal courts B) Small claims courts C) Courts of appeal D) Superior courts E) Trial courts

C) Courts of appeal

20) ________ means that the government may not act in a manner that is arbitrary, capricious, or unreasonable. A) Contract clause B) Just compensation C) Due process D) Exclusion clause E) Eminent domain

C) Due process

58) Josh crashes his car into Sheila's house. Sheila is severely injured and suffers $95,000 worth of medical and property damages. She believes that the accident was Josh's fault and files a lawsuit at a state trial court. What would have to be different for Sheila to be able to sue Josh in a federal court? A) Josh must have been intoxicated during the accident. B) Josh must not have severely injured Sheila. C) Josh and Sheila must live in different states. D) The amount of damages incurred by Sheila must be less than $75,000. E) Sheila must petition her elected officials.

C) Josh and Sheila must live in different states.

11) Which of the following statements about the role of the commerce clause in regulating business activity is not true? A) If a state regulation is preempted by federal law, it is automatically unconstitutional under the commerce clause. B) The test for whether a state regulation violates the commerce clause is whether that regulation puts an undue burden on interstate commerce. C) The commerce clause prohibits a state from placing any burden on interstate commerce. D) One purpose of the commerce clause is to prevent one state from isolating itself economically from other states. E) The commerce clause is seen as prohibiting discrimination against interstate commerce.

C) The commerce clause prohibits a state from placing any burden on interstate commerce.

33) ________ generally select arbitrators. A) Appeals court judges B) Attorneys C) The disputing parties D) The trial court judges E) Counselors

C) The disputing parties

9) Which of the following statements is true of the regulation of foreign commerce under the commerce clause? A) A state cannot regulate activities that relate to foreign commerce even if such activities are conducted entirely within the state's boundaries. B) The federal power to regulate foreign commerce is relative to the power exercised by the state and local governments. C) The power to regulate foreign commerce is total and vested exclusively in the federal government. D) Attempts by local governments to indirectly regulate foreign commerce are constitutional. E) Under no circumstances can the federal government prohibit foreign commerce entirely.

C) The power to regulate foreign commerce is total and vested exclusively in the federal government.

2) A petition for a writ of certiorari is ________. A) a plea by the winning party in the court of appeals wherein the party agrees not to contest the charges against the defendant B) an oath administered to a witness requiring him to speak the truth C) a request by the losing party in the court of appeals for permission to file an appeal with the U.S. Supreme Court D) the underlying principle of a case E) the process of finding out the facts of a case

C) a request by the losing party in the court of appeals for permission to file an appeal with the U.S. Supreme Court

47) A lawsuit that is totally lacking in merit is said to be ________. A) dogmatic B) cognizable C) frivolous D) consequential E) peremptory

C) frivolous

35) An arbitrator's award must ________. A) set forth the specific credentials of the arbitrator B) be desirable to both the disputing parties to be legally binding and enforceable C) give a disclosure of findings and the reasons if an arbitration agreement so requires D) define the scope of the arbitrator's powers E) set forth the findings of fact under any circumstance

C) give a disclosure of findings and the reasons if an arbitration agreement so requires

19) The takings clause of the Fifth Amendment to the Constitution allows A) federal government to regulate business activity under foreign and interstate commerce. B) courts to decide whether the possession of a gun by an individual is valid or unnecessary. C) government to take specific resources away from private owners for public use upon the payment of just compensation. D) federal government to impact contractual relationships between companies. E) courts to decide if a state law is invalid or unconstitutional because it conflicts with a federal law or a policy of a federal institution.

C) government to take specific resources away from private owners for public use upon the payment of just compensation.

34) When a losing party in an arbitration proceeding makes allegations of bias against an arbitrator, the allegations ________. A) normally set off a new round of litigation B) automatically nullify a panel's opinion C) normally do not affect the results of arbitration D) normally remove that arbitrator's opinion from the results of the arbitration E) result in a judge overturning the opinion

C) normally do not affect the results of arbitration

39) The typical long-arm statute allows a court to obtain jurisdiction over a defendant even though the process is served beyond its borders if the defendant ________. A) files a counterclaim against a plaintiff B) qualifies for res judicata C) owns property within the state that is the subject matter of the lawsuit D) has committed a tort outside the state in which the court obtaining jurisdiction is located E) has not obtained a writ of certiorari from the state in which he or she currently resides

C) owns property within the state that is the subject matter of the lawsuit

7) Under the ________, courts may be called upon to decide if a state law is invalid because it conflicts with a federal law. A) minimum rationality approach B) exclusion clause C) supremacy clause D) contract clause E) strict scrutiny approach

C) supremacy clause

60) Ann filed a lawsuit against Larry in the U.S. District Court in California. She was not represented by an attorney. She claimed that Larry failed to perform on an agreement that she had with him. Ann paid Larry $80,000.00 to remodel her home in Los Angeles. Larry, a resident of San Diego, took the money, but never showed up to paint her home. Ann's case is dismissed by the federal court. Which of the following is an accurate statement as to why Ann's case was dismissed? A) Ann should have filed her case in the U.S. District Court in Arizona. B) Ann needed a writ of certiorari to have her case heard by the federal court. C) Ann was required to have an attorney represent her in order to file a case in federal court. D) Ann's issue is not a federal question, and she and Larry are both from California. E) The amount in controversy does not exceed the jurisdictional limit for federal court.

D) Ann's issue is not a federal question, and she and Larry are both from California.

16) ________, a tort theory, is used to recover damages as a result of printed defamation of character. A) Slander B) Embezzlement C) Battery D) Libel E) Larceny

D) Libel

17) An individual would be harmed by libel if ________. A) an untruth that would harm his/her reputation has been spoken B) a taking has occurred without just compensation C) a robbery has occurred D) a defamatory falsehood has been printed E) he/she has been battered

D) a defamatory falsehood has been printed

10) Limits are placed on a state's regulatory powers regarding business by which section of the U.S. Constitution? A) Second Amendment B) Bill of Rights C) Establishment clause D) Contract clause E) Commerce clause

E) Commerce clause

54) The federal courts have the power to hear cases in which there is diversity of citizenship, meaning that ________. A) all plaintiffs have presented a case arising out of the US Constitution B) all defendants qualify for ratio decidendi C) all plaintiffs be citizens of different states D) all plaintiffs be citizens of different states from all defendants E) all defendants be citizens of different states

D) all plaintiffs be citizens of different states from all defendants

55) Courts have held that the existence of diversity of citizenship is determined by the citizenship of the ________. A) lawyers involved in a case B) judges deciding a case C) people affected by the defendants of a case D) parties in a case E) jurors involved in a case

D) parties in a case

29) Which of the following is not true of an award? A) It is usually filed with the clerk of the appropriate court. B) It is final on all issues submitted. C) It is valid as long as it settles the entire controversy and states which party is to pay. D) In most states, it must be in writing. E) It is subject to judicial review on the merits of a decision.

E) It is subject to judicial review on the merits of a decision.

45) Which of the following is a pre-trial motion filed to show that no genuine factual dispute exists and that the party filing the motion is entitled to judgment as a matter of law? A) Motion for sanctions B) Motion in limine C) Motion for judgment on the pleadings D) Motion for res judicata E) Motion for summary judgment

E) Motion for summary judgment

4) Which of the following is part of the pretrial procedure? A) The process of jury selection B) The res judicata examination C) Delivering opening statements D) The voir dire examination E) The discovery process

E) The discovery process

23) Which of the following statements is true of focus groups? A) They are employed by two disputing parties to decide on feasible solutions. B) They are precluded during the pretrial process when a particular case is subject to litigation. C) They are primarily employed to determine the facts of a particular case. D) They are a group of experts from the field of law who provide insights into a case. E) They are used by attorneys, and they point out weaknesses in a particular case.

E) They are used by attorneys, and they point out weaknesses in a particular case.

38) Ellis, a resident of New York, wants to sue Timothy, a resident of Texas, for damage to Ellis's house in New York. To use a long-arm statute to obtain personal jurisdiction over Timothy, the New York court must find that ________. A) Timothy owns property in Texas that he purchased ten years ago B) Ellis also damaged property in Texas and owns a home in Texas C) The damage occurred while Ellis was in his home in New York D) Timothy has committed torts in New York E) Timothy committed the tort in New York

E) Timothy committed the tort in New York

8) Which of the following statements is true of the supremacy clause? A) This clause gives priority to U.S. laws when various laws are not consistent. B) This clause prohibits states from enacting laws that impact rights and duties of companies under the existing companies' contracts. C) Under this clause, state laws decide the validity of the laws passed by Congress. D) The application of this clause is traditionally limited by the district courts. E) Under this clause, it is immaterial that a state did not intend to frustrate the federal law if the state law in fact does so.

E) Under this clause, it is immaterial that a state did not intend to frustrate the federal law if the state law in fact does so.

40) Collectively, the people suing a medical device company, alleging injuries from a product, would be called ________. A) the prosecutors. B) the defendants C) the counterdefendants in a counterclaim. D) the counterplaintiffs in a counterclaim. E) a class for a tort action.

E) a class for a tort action.

51) Subject matter jurisdiction is defined as ________: A) a judicial philosophy about the role of the courts in our society B) a party's inability to further pursue a matter that has been fully adjudicated C) a judicial philosophy on how judges should decide cases D) the underlying principle of a judicial precedent E) a court's power over the issues involved in a case

E) a court's power over the issues involved in a case

28) The decision handed down by an arbitrator in a hearing is called a(n) ________. A) judgment B) verdict C) summon D) submission E) award

E) award

15) Handbags Plus, a handbag manufacturer and retailer, produces a misleading magazine advertisement, which shows that a particular handbag is made of 100% genuine leather when it is actually a mixture of leather and faux leather. A consumer organization, a group that protects consumers from corporate exploitation, files a complaint with a federal institution which in turn issues an order prohibiting Handbags Plus from making such false statements about its products. This instance of regulation on advertising about consumer products is an example of a limitation on ________. A) the right to compensation for a taking B) freedom of the press C) freedom of establishment of religion D) the right to free exercise of religion E) commercial speech

E) commercial speech

27) In the absence of a statute, the rights and duties of the disputing parties to a submission for arbitration are described and limited by ________. A) the legislature B) the arbitrator's decision C) the Constitution D) the litigator E) the parties' agreement

E) the parties' agreement


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