Test 1 Spring 2020

Applying the relevant rule of law to the facts of a case requires a judge to find previously decided cases that, in relation to the case under consideration, are a. as similar as possible. b. exactly identical. c. as different as possible. d. at odds.

A

Bram knows that the pipes in his building leak, but he tells Cass, a potential buyer, that there are no leaks. On this assurance, Cass buys the building. On learning the truth, she may sue Bram for a. fraudulent misrepresentation. b. defamation. c. conversion. d. wrongful interference with a business relationship.

A

Excavation, Inc., uses explosives to prepare land for construction projects. Strict liability is imposed on this activity because a. the activity is extremely risky. b. Excavation is a corporation. c. the amount of liability can be added to the costs of construction. d. the activity is inherently negligent.

A

France and the United States are signatories of the Berne Convention. Alain, a citizen of France, publishes a book first in France and then in the United States. Alain's copyright must be recognized by a. all of the signatories of the Berne Convention. b. none of the choices. c. France and the United States only. d. France only.

A

George burns a U.S. flag in his backyard. He films the activity and posts the video on YouTube.com. George's conduct is most likely a. protected by the First Amendment. b. expressly prohibited by the Constitution. c. given strict scrutiny under the equal protection clause. d. subject to reasonable restrictions under the due process clause.

A

Hal, a resident of Illinois, owns a warehouse in Indiana. A dispute arises over the ownership of the warehouse with Jack, a resident of Kentucky. Jack files a suit against Hal in Indiana. Regarding this suit, Indiana has a. in rem jurisdiction. b. in personam jurisdiction. c. federal jurisdiction. d. no jurisdiction.

A

Laws enacted by legislative bodies at any level of government make up the body of law generally referred to as a. statutory law. b. the basis of all law in the United States. c. uniform law. d. the supreme law of the land.

A

Leah, a citizen of Maine, obtains a federal license to operate a commercial fishing boat in a certain area off the Maine coast. The Maine state legislature enacts a law that bans all commercial fishing in that area. Most likely, the state law violates a. the supremacy clause. b. the commerce clause. c. the due process clause. d. no provision in the U.S. Constitution.

A

Opal is injured and her property is damaged when a truck with defective brakes careens off an adjacent highway and crashes into her home. If Opal brings a successful tort action against the truck's owner for gross negligence, she may be awarded punitive damages to a. punish the defendant and deter others from similar wrongdoing. b. put her into the same position she would have been in if the tort had not occurred. c. compensate for her total losses. d. all of the choices.

A

Phoenix Inc. is a publisher. Phoenix uses a logo featuring a bird rising from a flame to identify its publications. The publications are printed in a unique process that includes a 3-D printer. Phoenix could most likely obtain trademark protection for its a. logo. b. publications. c. printer. d. printing process.

A

The 1803 decision of the United States Supreme Court in the case of Marbury v. Madison established a. the power of judicial review. b. the jurisdiction of the courts. c. the rule of four. d. voir dire.

A

The Environmental Protection Agency (EPA) discovers that Fish Farm Inc. has violated an EPA regulation. If no settlement is reached, the EPA can a. issue a formal complaint. b. take the matter to the U.S. Supreme Court. c. do nothing. d. immediately impose sanctions.

A

The utilitarian theory of ethics does not require a. the acquiring of the means of production by workers. b. an assessment of the effects of alternatives on those affected. c. a determination of whom an action will affect. d. a choice among alternatives to produce the maximum societal utility.

A

Bix backs out of City Parking Garage, colliding with Dill's car. Dill may recover $7,500 to cover the cost of the repairs if Bix failed to act as a. faultless person. b. a reasonable person. c. a blameless person. d. an objective person.

B

Business ethics looks at whether business decisions a. follow legal doctrine. b. are right or wrong. c. derive from well-known business principles. d. align with corporate policy.

B

Commercial Supply wants to initiate a suit against Downwind Power Corporation by filing a complaint. The complaint should include a statement of the facts necessary to show that a. the case can be disposed of without a trial. b. Commercial is legally entitled to a remedy. c. the solvency of Downwind is in question. d. Downwind does not have a valid defense.

B

Dian enters a car race, knowing that there is a risk of being injured in a crash. Dian assumes a. only those risks that she agrees to assume. b. the risk of being injured in a crash. c. no risk in this situation. d. any risk—contemplated or not—associated with the race.

B

Evan is arrested for a theft committed by someone who stole his identity. A court orders his release, but due to a police error in Evan's paperwork, he is held in jail for a month. The police are most likely liable for a. defamation. b. false imprisonment. c. assault. d. intentional infliction of emotional distress.

B

Fran tells Gio that her Hyundai Kia has never been in an accident. This may give rise to an action for fraud if the statement is a. puffery. b. false. c. fact. d. opinion.

B

GoodGro Inc. makes genetically modified seeds that are identical to Harvest Corporation's patented seeds, without Harvest's permission. This is most likely a. copyright infringement. b. patent infringement. c. none of the choices. d. trademark infringement.

B

Khan takes a rock from a pile of stones on Lamb's property and throws it intending to hit Minh, but misses and hits Nasir instead. For the tort of battery, Nasir can sue a. Minh. b. Khan. c. no one. d. Lamb.

B

Lake City enacts an ordinance that bans the distribution of all printed materials on city streets. Mackensie opposes the city's latest "revenue-enhancing" measure and wants to protest by distributing handbills. In her suit against Lake City, a court would likely hold the ban on printed materials to be a. not subject to the U.S. Constitution. b. unconstitutional under the First Amendment. c. constitutional under the First Amendment. d. unconstitutional under the commerce clause.

B

Martin files a suit against Nichelle in a state court over an employment contract. The case proceeds to trial, after which the court renders a verdict. The case is appealed to the state's highest court. After that court's review of Martin v. Nichelle, a party can appeal the decision to the United States Supreme Court if a. the party is unsatisfied with the result. b. a federal question is involved. c. a state question is unresolved. d. the state trial and appellate court rulings are different.

B

Oklahoma enacts a statute to ban advertising in "bad taste." Most likely, a court would hold this statute to be a. necessary to protect national interests. b. an unconstitutional restriction of speech. c. justified by the need to protect individual rights. d. constitutional under the First Amendment.

B

Paving Corporation taps into the computer network of Roadwork Inc., a competitor, and downloads confidential business data without Roadwork's knowledge or authorization. This is most likely a. patent infringement. b. a theft of trade secrets. c. copyright infringement. d. trademark infringement.

B

Pete, a broker, advises Ollie to invest in Rocky Road Inc. When the share price of Rocky's stock decreases, Ollie accuses Pete of fraud, claiming reliance on Pete's advice. The reliance that gives rise to liability for fraud requires a. a threat of physical force. b. a misrepresentation of fact knowing that it is false. c. puffery. d. a statement communicated to at least one person other than the plaintiff.

B

Ruby invents a new type of pillow and obtains a patent for it. Sleep-Time Inc. believes that Ruby's pillow infringes on one of Sleep-Time's previously patented products. Sleep-Time must file a challenge to Ruby's patent within a. the life of the inventor plus seventy years. b. nine months. c. twenty years. d. no specific time.

B

A cost-benefit analysis is part of a. the principle of rights theory. b. corporate social responsibility. c. utilitarianism. d. a duty-based ethics approach.

C

Berry Good LLC registers its trademark with the U.S. Patent and Trademark Office, and uses it to market a distinctive line of ice cream products. Crabapple Inc. uses the mark without Berry's consent to sell imitation frozen desserts. Berry has a cause of action against a. all of the choices. b. consumers who buy Crabapple's desserts. c. Crabapple. d. the U.S. Patent and Trademark Office.

C

Common law rules develop from a. regulations issued by administrative agencies. b. uniform laws drafted by legal scholars. c. principles underlying judges' decisions in actual controversies. d. statutes enacted by Congress and the state legislatures.

C

Criminal statutes proscribe a. the prosecution of public officials by private individuals. b. the prosecution of private individuals by other private individuals. c. wrongs committed against society for which society demands redress. d. the relief available when a person's rights are violated.

C

Flo, the manager of Grounds Maintenance Inc., must decide whether to use an herbicide that could be unhealthy to employees using it and to the public once it is on the ground. Flo might lose the client if she refuses to use the herbicide. If Flo analyzes the importance of good health and avoidance of disease to people in making her decision, she is likely using a. the categorical imperative. b. religious principles. c. the principle of rights theory. d. utilitarianism.

C

Grain Farms, Inc., files a suit against Harvest Services. Before the court can exercise jurisdiction over Harvest, the court must have proof that a. Harvest committed the act of which Grain Farms complains. b. Grain Farms did not act to precipitate a dispute with Harvest. c. Harvest was notified of the suit. d. Grain Farms is prepared to notify Harvest of the suit.

C

Honi is not a resident of Iowa although her website can be accessed by residents of that state. Jean files a suit against Honi in an Iowa state court. The court is most likely to have jurisdiction over Honi if Jean's claim arises from a. minimum contacts between Honi and any Iowa resident. b. no interactivity between Honi and any Iowa resident through Honi's website. c. substantial business between Jean and Honi through Honi's website. d. the Internet's capacity to bypass boundaries.

C

If a company strictly complies with existing laws, the firm will a. fulfill no business ethics obligations. b. fulfill all business ethics obligations. c. fulfill some business ethics obligations. d. not need to fulfill any business ethics obligations.

C

In the case of Sales Corp. v. Transport Co., the court may rule contrary to a precedent if the court decides that the precedent a. is not in line with the judge's personal values. b. would lead to unintended consequences. c. is incorrect or inapplicable. d. would not bring about the result the judge prefers.

C

Isabel and Josh engage in a business transaction that leads to a dispute. Isabel initiates a lawsuit against Josh by filing a complaint. The sheriff serves Josh with a summons. If Josh chooses to ignore it, a. Josh will have a judgment entered in his favor. b. Josh must be served with a second summons. c. Isabel will have a judgment entered in her favor. d. Isabel must file an amended complaint.

C

Mary creates a t-shirt design that expresses support for Nash, a presidential candidate, and distributes t-shirts to all of her friends. The t-shirts are an example of a. illegal speech. b. commercial speech. c. symbolic speech. d. unprotected speech.

C

Ricard, an engineer, supervises the construction of a new mountainside roadway. The road collapses in a landslide due to faulty grading. Motorists injured in the collapse sue Ricard in a tort action for negligence. Under that theory, as a professional, Ricard is held to the same standard of care as a. ordinary persons. b. those injured in the collapse of the bridge. c. other engineers. d. other professionals, including doctors, dentists, and lawyers.

C

State trial courts that are called county, district, superior, or circuit courts are most likely to have a. appellate jurisdiction. b. limited jurisdiction. c. general jurisdiction. d. no jurisdiction.

C

To be protected under the Copyright Act, a work must be a. none of the choices. b. an inseparable idea and expression. c. original and fixed in a durable medium. d. a concept, principle, or discovery.

C

Tyler, a citizen of Utah, files a suit in a Utah state court against SeaCoast Sales Corporation, a Washington state company that does business in Utah. The court has original jurisdiction, which means that a. the subject matter of the suit is interesting and new. b. the court has unusual procedural rules. c. the case is being heard for the first time. d. the court has a unique method of deciding whether to hear a case.

C

Under the principle of rights theory, a key factor in determining whether a business decision is ethical is how that decision a. compares to religious principles. b. supports the right to make a profit. c. affects the rights of others. d. causes consequences that would follow if everyone acted the same way.

C

Works that are copyrightable include a. music videos. b. product packaging. c. all of the choices. d. books.

C

"Be honest and treat people fairly." With respect to business ethics, implementing this motto is a. only important with large customers. b. not important. c. only important in democratic societies. d. very important.

D

A statute enacted by the Wyoming state legislature to regulate trucking affects interstate commerce. In evaluating this statute, the courts will weigh the burden that it imposes on interstate commerce against a. the federal government's authority to regulate the matter. b. the statute's impact on noneconomic activity. c. the purpose of interstate commerce. d. the state's interest in regulating the matter.

D

Caryn is faced with making a business decision. As she thinks about the problem, she feels that there is no easy answer. She continues to think about what is making her uncomfortable about the situation before brainstorming possible solutions. If Caryn is using the IDDR approach to decision making, she is engaged in a. the decision step. b. the discussion step. c. the review step. d. the inquiry step.

D

Cattle House Steaks, an Alabama company, enters into a contract over the phone with Beef Packing Inc., an out-of-state corporation. If a dispute arises, an Alabama court can exercise jurisdiction over Beef Packing a. on the basis of a federal question. b. in no circumstances. c. only if Beef Packing files the suit. d. under the minimum contacts test.

D

Cynthia is the chief financial officer of Digital Corporation. In that capacity, when she is unsure whether a certain business action is legal, she should act a. in her own best interest. b. to maximize profit. c. in the short-run interest of Digital. d. honestly and responsibly.

D

Greg is marketing manager for Home Stuff LLC. Greg is responsible for branding the company's products. Aspects of branding that can be trademarked include a. none of the choices. b. use of another party's established trademark, with or without permission. c. the shape of a container, even if it does not aid in product identification. d. a catchy phrase, such as "Stuff your home with Home Stuff!"

D

Home Care Company is charged with violating a rule of the Social Security Administration. Most likely, Home Care will be required to appear at a hearing presided over by a. a U.S. Marshal. b. a federal district court judge. c. a federal appellate court judge. d. an administrative law judge.

D

In a suit against Karen, Luke obtains an injunction. This is a. the cancellation of a contract. b. a payment of money. c. a departure from precedent. d. an order to do or to refrain from doing a certain act.

D

Leigh buys Masters of Business, a copyrighted book. Under the first sale doctrine, Leigh can legally a. control the distribution of other copies of the book. b. none of the choices. c. republish the book as his own work. d. sell the book to another person.

D

On a challenge to a provision in a state constitution that conflicts with a provision in the U.S. Constitution a. neither provision will be enforced. b. the state provision will be enforced only within that state's borders. c. both provisions will be enforced. d. the state provision will not be enforced.

D

The Uniform Commercial Code provides a set of rules governing a. congressional procedures. b. state legislative adoptions. c. administrative processes. d. commercial transactions.

D

When making decisions that are ethical under either profit maximization or corporate citizenship theories, a business should include all of the following steps except a. apply ethical theories to reasonable alternatives. b. recognize that there is an ethical issue in the decision. c. reflect on the outcome of the decision once it is made. d. publicize the options you rejected with your reasons.

D

A resident of one state, when in another state, can be denied the privileges and immunities of that state for any reason. True False

False

In situations involving fundamental rights, a law that rationally relates to a legitimate government end will be struck down. True False

False

Corporations enjoy many of the same rights and privileges as natural persons do. True False

True

Preemption occurs when Congress chooses to act exclusively on a subject over which the federal government shares power with the states. True False

True