MGMT 200 Midterm Practice

What are the three branches of government and their functions?

Legislative - makes laws; Executive - enforces laws; Judicial - interprets laws.

What are the five primary sources of law?

Constitutional, Statutory, Regulatory/Administrative, Executive Orders, Common Law.

What is the "Supreme Law of the Land"?

The U.S. Constitution (and state constitutions under it).

Define "stare decisis."

Doctrine of precedent - courts follow earlier decisions in similar cases.

What's the difference between legal and equitable remedies?

Legal = monetary compensation; Equitable = actions (to do/refrain from doing).

Civil vs. Criminal Law - who brings the case and what's the burden of proof?

Civil = individual plaintiff, preponderance of evidence; Criminal = government prosecutor, beyond a reasonable doubt.

What's the difference between substantive and procedural law?

Substantive defines rights and duties; procedural defines how to enforce them.

Order of law hierarchy?

Federal > State > Local; Supreme Court > all other courts.

What case established judicial review?

Marbury v. Madison.

What are the two main court systems in the U.S.?

Federal and State systems.

Federal court levels (lowest → highest)?

U.S. District Courts → U.S. Courts of Appeal → U.S. Supreme Court.

Define "jurisdiction."

A court's authority to hear and decide a case.

What is personal jurisdiction (in personam)?

Power over people or entities within the court's territory.

What are "minimum contacts"?

Sufficient connection with a state to justify jurisdiction over an out-of-state defendant.

Define subject matter jurisdiction.

Determines the types of cases a court may hear.

When does federal court have jurisdiction?

Cases involving a federal question OR diversity of citizenship + >$75,000 in controversy.

Difference between venue and standing?

Venue = proper location; Standing = plaintiff's legal interest or harm.

Stages of a civil trial (in order)?

Pleadings → Pre-trial motions → Discovery → Trial → Verdict → Post-trial → Appeal.

What is "discovery"?

Process to gather evidence (depositions, subpoenas, interrogatories).

What's a "Judgment NOV"?

Judge overturns jury's verdict if unreasonable.

When can you appeal a case?

Only for mistakes of law or improper handling—not to add new evidence.

What is habeas corpus used for?

Criminal cases to challenge illegal detention or imprisonment.

Define ethics vs. law.

Law = legal standards; Ethics = moral standards (not always the same).

List the five major ethical theories.

Utilitarianism, Rights-Based, Duty-Based, Justice-Based, Virtue-Based.

What is utilitarianism?

The greatest good for the greatest number—judges actions by outcomes.

What is rights-based ethics?

Focuses on natural human rights that everyone holds equally.

Duty-based ethics comes from what principle?

Universal duty—everyone should act the same way under same circumstances (Kantian).

What is the "veil of ignorance"?

Rawls' idea that fair decisions come from ignorance of personal traits or status.

What does virtue-based ethics emphasize?

Character traits like honesty, integrity, empathy—not just decisions.

What's Corporate Social Responsibility (CSR)?

Companies' duty to act ethically toward all stakeholders, not just shareholders.

What does the Foreign Corrupt Practices Act (FCPA) prohibit?

Bribery of foreign officials by U.S. persons or companies.

FCPA penalties?

Up to $100,000 + 5 years jail (individuals); $2M per violation (corporations).

How can an attorney-client relationship form?

Explicit agreement or implied through giving/receiving legal advice.

What is attorney-client privilege?

Protects confidential communications between lawyer and client.

When does privilege not apply?

Future plans to harm someone or commit a crime.

What is a conflict of interest?

Representing one client adversely affects duties to another client.

What governs lawyer ethics in Washington?

Washington Rules of Professional Conduct (RPC Titles 1-8).

What are the three main alternatives to litigation?

Negotiation, Mediation, Arbitration.

Why might parties avoid litigation?

To save time, reduce costs, preserve relationships, and maintain privacy.

What is negotiation?

Informal discussion between parties (with or without lawyers) to reach a settlement; no third party required.

What is assisted negotiation?

A neutral third party helps facilitate or evaluate positions, but does not decide the case.

What is mediation?

Neutral facilitator assists parties in finding a mutually acceptable resolution; mediator suggests but doesn't decide.

What is arbitration?

Formal ADR where parties present evidence to an arbitrator, who issues an award (binding or non-binding).

Difference between binding and non-binding arbitration?

Binding = legally enforceable, final; Non-binding = parties may still go to court.

What is the Federal Arbitration Act (FAA)?

Federal law that enforces arbitration agreements and allows courts to confirm arbitration awards.

What is an arbitration agreement?

A voluntary, explicit contract to resolve disputes through arbitration (often required by employers).

List the four stages of arbitration.

Submission → Hearing → Award → Confirmation & Compliance.

When can a court set aside an arbitration award?

Fraud, corruption, bias, misconduct, or arbitrator exceeding authority.

Why are administrative agencies called the "fourth branch" of government?

They perform legislative (rulemaking), executive (enforcement), and judicial (adjudication) functions.

What are the two types of administrative agencies?

Executive agencies and Independent regulatory agencies.

What is enabling legislation?

Statute through which Congress creates an agency and defines its powers.

What are the three main functions of agencies?

Rulemaking, Enforcement, Adjudication.

Describe the three steps of the rulemaking process.

Notice of Proposed Rulemaking → Comment Period → Final Rule publication.

What are informal agency actions?

Nonbinding interpretive rules or policy guidance exempt from formal rulemaking.

What enforcement powers do agencies have?

Investigations, self-reporting, subpoenas, inspections.

When can agencies conduct warrantless searches?

In highly regulated industries or emergencies.

What happens in agency adjudication?

ALJ conducts hearing, issues initial order; final if not appealed.

What is the Chevron Doctrine?

Courts defer to agency interpretations if statute is ambiguous and interpretation is reasonable.

What does "arbitrary and capricious" mean in admin law?

Agency acted without rational explanation or ignored key facts.

What are the three types of checks on agencies?

Executive, Legislative, and Judicial controls.

What is federalism?

Division of power between national and state governments.

What is the Supremacy Clause?

Constitution is supreme law; federal law preempts conflicting state law.

What is the Preemption Doctrine?

Federal law overrides conflicting state law.

What is the Commerce Clause and why is it important?

Gives Congress power to regulate interstate commerce; basis for federal regulation.

What are the Privileges & Immunities and Full Faith & Credit Clauses?

P&I: prevents discrimination vs. out-of-state citizens; FF&C: states must honor civil judgments from other states.

What are the three standards of judicial review?

Strict Scrutiny, Intermediate Scrutiny, Rational Basis.

When is strict scrutiny applied?

When a law affects a fundamental right or suspect class (race, national origin).

What must the government prove under strict scrutiny?

Law is necessary for a compelling interest and uses least restrictive means.

When is intermediate scrutiny used?

When laws involve gender or illegitimacy.

What is required under the rational basis test?

Law must be rationally related to a legitimate government interest.

What types of speech get highest protection?

Content-based political or opinion speech.

What is commercial speech and when can it be regulated?

Business/economic speech; regulation ok if substantial interest, directly advances it, and no broader than necessary.

What is symbolic speech?

Nonverbal expression like flag burning; protected if content-neutral and narrowly tailored.

What are "time, place, and manner" restrictions?

Regulation of when, where, and how speech occurs; must be content-neutral and leave alternatives open.

What is unprotected speech?

Violence, obscenity, fighting words, incitement, false commercial speech.

What was the Citizens United v. FEC (2010) ruling?

Corporate political spending is protected speech under the First Amendment.

What are the two religion clauses?

Establishment Clause and Free Exercise Clause.

What is the Establishment Clause test?

Secular purpose, no advancement/inhibition of religion, no excessive entanglement.

What did Burwell v. Hobby Lobby (2014) decide?

Closely held corporations may refuse laws conflicting with owners' religious beliefs if less restrictive means exist.

What does the Equal Protection Clause guarantee?

No state shall deny any person equal protection of the laws.

What classes trigger strict scrutiny?

Race, national origin, alienage, sometimes poverty.

What triggers intermediate scrutiny?

Gender and illegitimacy.

What is procedural due process?

Right to notice and hearing before loss of life, liberty, or property.

What is substantive due process?

Protects fundamental rights from arbitrary government interference.

When can government take private property?

Only for public use and with just compensation (Takings Clause).