Business Law Exam 1 Practice Questions

One primary source of American law is:

the U.S. Constitution.

A state's constitution is a primary source of law in that state.

True

Law based on documents setting forth the general organization, powers, and limits of the government is called

constitutional law

Of all U.S. laws, including state laws, the U.S. Constitution

is considered the supreme over all others

If the United States Supreme Court determines that a state criminal law violates a provision of the Fourth Amendment to the U.S. Constitution, that law will be declared

unconstitutional

Statutes are enacted by either

the US Congress or state legislatures

When the U.S. Congress passes federal statutes, states are not obligated to follow them

False

The _____ is a uniform law adopted by all states that facilitates business transactions

Uniform Commercial Code

Which of the following is not true of administrative agencies:

They are prohibited from adjudicating disputes regarding their own regulations.

The Federal Trade Commission is an example of a(n)

independent regulatory agency

Enabling legislation:

creates an administrative agency and gives the agency powers.

Case law is based on the decisions made by those who run administrative agencies.

False

Administrative law

the rules, orders, and decisions of federal, state, or local government administrative agencies

case law

the law as states by judges in their court opinions

constitutional law

the law as expressed in the US Constitution and state constitutions

statutory law

laws enacted by federal, state, and local legislative bodies

A precedent is a decision that furnishes an example or authority for deciding subsequent cases involving similar legal principles or facts.

True

The Latin term stare decisis

to stand on decided cases

persuasive authority

any legal authority or source of law that a court may look to for guidance but does not need to follow when making a decision

binding authority

a source of law that a court must follow when deciding a case

A binding authority does NOT include

opinions from experts in the field

Remedies in quite include_____

specific performance

Today, most jurisdictions maintain separate courts of equity and courts of law.

false

Positivist

law is contracted based on the norms as created by a legislature within the framework of the time in which they are created

natural law

legal standards derive from a universality of rights which apply to all human beings

legal realism

customary practices and the circumstances surrounding a transaction guide us in shaping the decision for that situation

historical

doctrines that have withstood the passage of time, either unchanged or have evolved with time, help guide us in shaping laws

From the following, civil law can best be described as:

the law that protects private and public rights of individuals

Which of the following would NOT be the subject of a criminal law statute?

Not performing an employment agreement

If one nation violates international law, it is up to other nations to use persuasion or ___ actions such as severance of diplomatic relations____ sanctions or armed conflict

coercive, boycotts

In the field of legal research, a "citation" is:

a reference to a publication in which a legal authority can be found

When Congress passes a law, it can be found in which publication?

United States Statutes at Large

A citation to 42 U.S.C. § 1981 means that the statute is in

Section 1981 of Title 42 of the US Code

The plaintiff is the person who files the original petition with the court to start a lawsuit.

True

The ____ is the party who appeals a lower court’s decision

appellant

United States Supreme Court opinions can be found in which three of the following reporters?

Lawyers' Edition of the Supreme Court Reports (L.Ed.), United States Reports (U.S.), Supreme Court Reporter (S.Ct.)

In a case title at the appellate court level, the first party name is always the plaintiff at the trial court level.

False

When a court's opinion is not unanimous but most judges in that case agree with it, it is called a:

majority opinion.

In a particular case, Judge A does not agree at all with the other judges' opinions. Which of the following type of opinion will he write?

A dissenting opinion

The Uniform Commercial Code provides a set of rules governing

commercial transactions.

Jaime and Kay enter into a contract for the sale of a bicycle, but Kay later refuses to deliver the goods. Jaime asks a court to order Kay to perform as promised. Ordering a party to perform what was promised is

an equitable remedy.

In a suit against Guillermo, Hailey obtains an award of damages. This is

a payment of money or property.

The Environmental Protection Agency (EPA) discovers that Fish Farm Inc. has violated an EPA regulation. If no settlement is reached, the EPA can

.

issue a formal complaint.

Secondary sources of law include

legal scholars’ research.

Persons who favor the creation of a federal agency to regulate the production of genetically modified agricultural products should concentrate their lobbying efforts on

Congress

Administrative law includes

the rules, orders, and decisions of a government agency.

A constitution sets forth a government’s

limits and powers.

The Uniform Commercial Code facilitates commerce

among the states.

Federico and Gwen are involved in a court proceeding to enforce a right. This is

an action.

Congress passes a law prohibiting cigars made in Cuba from being sold in the United States. The Florida state legislature then passes a law allowing the sale of Cuban cigars in Florida. If the constitutionality of the Florida law is challenged in court, it will most likely be:

struck down on the basis of the supremacy clause.

Garrett was a commercial tour-boat operator on the northern coast of Kauai, Hawaii. He was licensed by the state of Hawaii to operate his boat in Hanalei Bay. The U.S. Department of Transportation and the U.S. Coast Guard also granted Garrett an unrestricted license to operate his boats in Hanalei Bay. Hawaii subsequently passed a law that banned all commercial use of Hanalei Bay. The state refused to renew Garrett's state license and ruled that he was not allowed to operate his vessel based on his federal licenses. Garrett sued the state, alleging that the state law that prohibited him from operating his boat conflicted with the federal law that authorized him to do so. The court probably found that the state law was:

unconstitutional under the supremacy clause

The Iowa legislature passed a law banning trucks sixty-five feet long or longer from operating on its roads and highways because big trucks do more damage to roads than smaller trucks and are involved in more serious accidents. Prior to the ban, Consolidated Freightways (CF) had driven big trucks through Iowa on a regular basis, and these trucks were legal in other states. Switching to smaller trucks for trips through Iowa was inconvenient and costly. CF filed a lawsuit contending that the statute was unconstitutional. The United States Supreme Court most likely found that the Iowa statute was:

unconstitutional under the dormant commerce clause.

A state legislature passes a statute prohibiting businesses from supporting any political candidate. If some business owners challenge the constitutionality of the law in court, will the law be upheld?

No, because the law is an unconstitutional restriction on free speech

Mary is a line cook at a restaurant and unknowingly has a highly contagious disease, "Syfoid." She hasn't show any symptoms herself, but she has passed it through the food she handles to several customers who later died. The Center for Disease Control (CDC) traced the disease back to Mary and order her to "appear for testing and treatment as well as to cease all handling of food." When Mary refuses, the CDC and law enforcement arrive at her home and forcibly take her to a hospital where she is quarantined though she was not charged with any crime. Several months later Mary has still not been released from quarantine because she is still communicable, however, she has never been provided an opportunity to contest her quarantine. In the meantime, Mary lost her job. Has any of Mary's fundamental rights been violated?

Possibly, because she was deprived of her liberty without due process.

A Minnesota statute required all operators of slow-moving vehicles to display a fluorescent red triangular sign. Henderson, an adherent of the Amish religion, was charged with violating the statute. His defense was that the law violated his First Amendment right to freedom of religion because displaying "loud" colors on his slow-moving black buggy conflicted with his religious belief that he should remain separate from the modern world. Henderson stated that he was willing to display the sign if he could use silver, instead of red, reflective tape, which was equally effective. The state argued that the law applied to all equally. The court most likely found that the statute, as it applied to Henderson, was:

unconstitutional under the free exercise clause.

Ocean City passes an ordinance that prohibits all churches from meeting within its city limits. This rule affects the residents' constitutional right to:

substantive due process.

A city ordinance allows only two hot-dog stands to operate in the city's downtown area. If someone who would like to add another hot-dog stand challenges this ordinance under the equal protection clause, the rule will be subject to:

the rational basis test.

The city of Trenton, New Jersey, passed an ordinance making it unlawful to use any form of sound amplification on the city streets. Keller mounted a speaker on a truck. Through the speaker, he played music and spoke on a microphone while driving on city streets. Keller was convicted and fined $50. He appealed, arguing that the ordinance violated his rights of free speech and free assembly. The city claimed that the ordinance served a legitimate governmental function in keeping the city streets safe and orderly, and did not prohibit or unduly restrict any particular speech. The court probably found that the ordinance was

constitutional as a reasonable restriction on fundamental rights.

The FBI wants to gain access to personal information (such as bank account numbers and social contacts) via the internet activities of Marcus Girard, a suspected terrorist who is a French citizen living in the U.S. on a temporary work visa. Which of the following acts allows the FBI to access this kind of information?

USA Patriot Act.

Congress passes a law that regulates the amount of lettuce that can be grown on a farm. Milton is a farmer who grows lettuce. He grows more lettuce than is allowed under the new law and is fined. He sues to have the law declared unconstitutional, arguing that he grew the allowed amount for sale and then grew some extra for his family to use in personal consumption. The federal courts are likely to

declare the law constitutional because Milton's actions substantially affect interstate commerce.

The state of Nevada passes legislation that bans public speakeing from hallways in academic buildings on university campuses to preserve the quiet that students need to study effectively and to ensure that pedestrian traffic is not blocked. Luis challenges the law as a violation of his rights to free speech. Will Luis win his suit?

No, because the right to free speech allows for a reasonable regulation of time, place, and manner so long as the regulation is content neutral.

The town of Rock River decides to put a new road through the middle of town to increase tourist traffic. To build the road, the town must tear down a number of buildings. It sends a note to the buildings' owners, telling them to vacate the premises within 24 hours. It is likely that the town has violated which provision of the Constitution?

The due process clause

In 1961, the executive director of the Planned Parenthood League of Connecticut was arrested and convicted of providing contraceptive information and materials to married people in violation of state law. The director appealed her conviction, and the United States Supreme Court found that the law violated a constitutional right to privacy. The Constitution never mentions privacy, but the justices found that the right is embedded in several amendments. Which of the following is NOT one of those amendments?

Eighth

The US constitution created a _____

federal form of government

Article 1, Section 8, of the U.S. Constitution impacts businesses greatly and is referred to as the

Commerce Clause

If you are a farmer who grows and sells only locally, can you correctly conclude that the commerce clause does NOT apply to your activities?

No, because the commerce clause has been broadly interpreted.

State laws that allow the use of medical marijuana protect users in those states from federal prosecution.

False

What powers do the states have to regulate or prohibit private activities?

Police powers

State police powers only authorize the creation and maintenance of police forces.

False

Which of the following would NOT be regulated at the state level?

Interstate commerce laws

If a state passes a regulation that impacts interstate commerce, it may violate the____

dormant commerce clause. Courts typically balance the interests of the state against the burdens on interstate commerce

When there is a direct conflict between a federal and a state law, the STATE law is rendered invalid

true

When Congress intends to exclusively control a subject where the U.S. Constitution allows for both states and the federal government to act, courts will use the doctrine of

preemption to invalidate any state regulations

In addition to the right to assemble peaceably and to petition the government, the First Amendment guarantees which of the following three freedoms?

1. press

2. religion

3. speech

The Fourth Amendment prohibits unreasonable searches and seizures of persons or property.

true

As originally intended, the first ten amendments to the Constitution limited only the power of

the federal government

When the language in the Bill of Rights is unclear, which of the following may occur?

The United States Supreme Court ultimately may decide what the language means

The two main purposes of the free speech clause of the First Amendment are to allow people to

1. freely voice their political opinions

2. criticize the government.

Symbolic speech is not protected by the Bill of Rights.

false

Content-neutral laws may regulate the

time place and manner but not content

The compelling government interest test is used by the courts to determine whether a law regulating the content of speech will be permissible.

true

Your state passes a law prohibiting businesses from supporting political candidates. You challenge the law in court. Will a court uphold that law?

No, because the law is an unconstitutional restriction of free speech

Commercial speech is protected to the same extent as political speech.

false

Provisions of the Fifth and Fourteenth Amendments guarantee that no person shall be deprived of life, liberty, or property without due process of law. This clause applies to all "legal persons," meaning:

individuals and corporations.

substantive due process

requires that the government be fair in its legislation and executive actions

equal protection

requires that the government treat similarly situated people in a similar manner

procedural due process

requires that the government give proper notice and opportunity to be heard and follow any established procedures

A law that imposes prison sentences on all street entertainers without a trial would likely violate procedural due process.

true

If a student is kicked out of school based on an allegation of cheating but that student does not have an opportunity to present his case to the dean, it is likely a violation of

procedural due process

To determine whether a law violates the equal protection clause, courts use one of three different standards. These three standards are:

1. rational basis scrutiny

2. strict scrutiny

3. intermediate scrutiny

A state law that bans illegitimate children from claiming child support from their parents after they turn ten, but does not ban legitimate children from doing the same, violates the equal protection clause.

true

The rational basis test requires that

the classification of people at issue in the law be related to a legitimate government interest

The U.S. Constitution specifically mentions privacy as one of the protected rights of U.S. citizens.

true

Freedom of Information Act

gives individuals a right to access information about them in government files

Gramm-Leach-Bliley Act

prohibits disclosure of nonpublic personal information without certain requirements being met

Family Educational Rights and Privacy Act

limits access to certain school-related records

Privacy Act

regulates agency use and disclosure of data related to individuals

The USA Patriot Act___

greatly expanded the authority of government to monitor emails and web site visits

Pros in Politics, a bookstore in Capitol City, sells publications that criticize government actions and policies. The city enacts an ordinance prohibiting the sale of such materials in the interest of preserving public tranquility. This ordinance is most likely

an unconstitutional restriction of speech.

Peoples Rights Organization (PRO), a political lobbying group, wants a certain policy enacted into law. If PRO’s policy conflicts with the U.S. Constitution, a law embodying it can be imposed by

none of the choices.