Business Law Exam 1

Chapters 1 -6

In our country, the principles and ideals guarding our individual liberty are presented in the common law

False

Statutes are laws passed by state and federal legislatures

True

The kind of law that results when a court disregards an existing statute, an accepted precedent, or a principle of common law, or interprets them differently, with the result that a new precedent is established, is known as precedent law

False

The purpose of the Uniform Commercial Code is to provide uniform laws for all states to regulate business transactions in the states

True

Unenforceable obligations that people have to one another are considered to be an aspect of moral law

True

The authority of a court, as granted by a constitution or legislative act, is known as the court’s jurisdiction

True

If a court has the power to review the decisions of another court, it has original jurisdiction

False

Common law is defined as

the body of law recorded from previous court decisions

Which of the following is not a source of law that is enforced by state or federal governments in the United States?

Moral law

What recommended body of laws has been enacted to regulate business law by all 50 states?

The Uniform Commercial Code

Moral law is defined as

Law defined by moral obligations not enforceable by law

Federal district court opinions are appealed to

Federal circuit courts

The power of a court to hear a case is known as

Jurisdiction

Federal courts hear cases that involve

Federal claims and claims by citizens of different states

The highest level of court in the federal system is

The U.S. Supreme Court

Laws passed by legislatures are known as

Statutory law

Laws passed by local governments, such as city councils, are usually known as

Ordinances

Unethical behavior has not been a problem in society until recent times

False

Generally, what is unethical is also illegal

False

The term values relates to the price of merchandise on sale

False

Although ethical principles have influenced many laws, the laws themselves are usually more precise

True

A whistleblower is a person who calls attention to illegal or unethical behavior

True

A corporate code of ethics might be called a set of guidelines for the ethical behavior expected of employees

True

Individual and societal beliefs are

Values

The standards that underlie an individual or society’s beliefs are

Morals

Standards that govern behavior but are not enforceable in court are

Ethics

Ethical reasoning based on consequences of actions is known as

Consequential-based reasoning

Corporate officers tasked with overseeing ethics compliance are usually known as

Corporate ethics officers

An employee who discloses employer wrongful or illegal activities may be offered protection as

Whistleblower

The purpose of criminal law is to compensate injured parties for their losses

False

If a person’s reckless driving results in automobile accident, he or she can be charged with both a tort and a crime

True

Shoplifting is the term that describes the theft of merchandise from retail stores

True

When employees with access to a firm’s money, such as accountants, cashiers, and bank tellers, wrongfully divert money to themselves or to others, they are usually charged with burglary

False

A person who profits from the sale of publicly traded stock as a result of using non-public information can be charged with violations of federal law

True

The crime of perjury is limited to the false swearing of under oath before a judge in federal court

False

Criminal laws are enforced (prosecuted) by

Only government individuals

The crime of reckless driving is most equivalent to the tort of

Negligence

The crime of giving aid and comfort to the nation’s enemies is

Treason

A felony is

More serious than a misdemeanor

Punishments for a misdemeanor usually include

Fines and imprisonment less than one year

An example of a violation of the Racketeer Influenced and Corrupt Organizations Act of 1970 (RICO) is

Wire fraud among several individuals

The difference between robbery and burglary is

Both involve taking of property, but robbery includes threat of bodily harm

The crime of perjury is an intentional false statement in which circumstance?

In a court proceeding

The crime of embezzlement occurs

In any theft of property from a business where the embezzler is an employee

The theft of a victim’s personal information for the purpose of illegally obtaining loans is

Identity theft

A tort is a violation of the rights of a particular person

True

Defamation includes both libel and slander

True

The tort of libel is concerned with injury to a person’s reputation caused by false statements that are used in testimony in court

False

Liability is the state of being responsible for a wrong or injury

True

The tort of conversion is concerned with acts that deny a person the possession of their property

True

The “reasonable person” doctrine is concerned with the appeal to a jury to assume how a person would behave under the best conditions

False

A tort is a violation of private rights related to

Person, property, or reputation

The crime of larceny is often related to the tort of

Conversion

In a defamation suit, a plaintiff alleges harm to

Reputation

Libel requires that false damaging statements are made

In written form

Defenses to defamation include

Truth and privilege

Nuisance that denies enjoyment to a community is

Public nuisance

One defense to a tort claim when the plaintiff is aware of the dangers of an activity and is injured from that activity is

Assumption of risk

The charging of a negligent act of one person to another not directly involved in the act is known as

Vicarious negligence

The doctrine that assigns liability regardless of the level of care is

Strict liability

A person responsible for a loss in a tort lawsuit is referred to as

Liable

The federal Constitution has been amended more than 100 times

False

The First Amendment’s right to freedom of religion is divided into two interconnected pieces, referred to as the enterprise clause and the free exercise clause

False

The Supreme Court has ruled that the term “to keep and bear arms” applies only to the military use of arms

False

The Supreme Court has ruled that a Fourth Amendment search only occurs when a person expects privacy in the thing searched and society believes that expectation is reasonable

True

The Fifth Amendment does not allow a court to try a criminal defendant more than once for the same offense unless the first trial has ended in an acquittal

False

The Eighth Amendment mandates that people accused or convicted of crimes are not to be subject to excessive bail

True

While it is impermissible for the federal government to deny an individual due process under the Fifth Amendment, it is not unconstitutional for a state to deny an individual due process

False

The Sixteenth Amendment granted the federal government power to impose and collect a tax on individuals’ incomes

True

Amendment of the U.S. Constitution requires

Both two thirds vote of Congress and approval of the three fourths states

Under the doctrine of preemption, when a state law is inconsistent with a federal law

Federal law must be applied

Federal regulation of business activities is most often based on which of the following constitutional provisions

Commerce clause

The First Amendment free exercise clause

Prohibits government interference with individual religious practice

The Second Amendment gives the right

For both militias and private citizens to carry firearms

The Fourth Amendment prohibition against unreasonable search and seizure

Allows government searches only with probable cause

The Fifth Amendment protections include

Due process, double jeopardy, and eminent domain

Each level of government has three branches; executive, legislative, and judicial

True

The executive branch of government sees that all enacted legislation is enforced

True

The judicial branch of government determines if there have been violations of law

True

The hearings conducted by administrative agencies customarily include trial by jury

False

The sole purpose of administrative agencies is to regulate business firms

False

There is no recourse from the decisions made at an administrative agency hearing

False

Administrative agencies are found at local, state, and federal levels of government

True

In most cases, the individual voter has direct control over administrative agencies

False

The courts often reverse the decisions of administrative agencies

False

The branches of the U.S. government are

Executive, legislative, and judicial

The branch of government tasked with passing laws is

Legislative

The branch of government tasked with interpreting laws is

Judicial

The branch of government tasked with enforcing laws is

Executive

Which of the following is not a function of an administrative agency?

Enact statutory law

Administrative agencies are created by

The legislative branch

Administrative rules and regulations resemble

Laws passed by a legislature

An order to appear at a judicial proceeding is known as

Subpoena

A judicial proceeding conducted by an administrative agency is known as

An administrative hearing

A common criticism of administrative agencies is that they are

Too influenced by the businesses that they regulate