Business Law - Chapter 2 Questions

Generally, given the broad language of the Constitution, the line between state and national powers is often determined by

a.

the President.

b.

the administrative branch.

c.

the courts.

d.

Congress.

c.

A federal form of government is one in which the national government shares sovereign power with

a.

the people.

b.

the states.

c.

the national government.

d.

no one.

b.

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

a.

none of the choices.

b.

Congress.

c.

the President.

d.

any state.

a.

The term checks and balances refers to the system under which

a.

a state must refrain from imposing unreasonable burdens on citizens of another state.

b.

any judicial decision with respect to property rights in one state will be honored and enforced in all states.

c.

the national government regulates interstate commerce.

d.

the powers of government are divided among its branches, each of which exercises a check on the actions of the others.

d.

The federal government has the power to regulate commercial activities among the states under

a.

the First Amendment.

b.

the privileges and immunities clause.

c.

the commerce clause.

d.

the full faith and credit clause.

c.

Under the U.S. Constitution, the federal government has the power to regulate commercial activities among the states. This grant implies that the regulation of such activities is not within the authority of

a.

the courts.

b.

the President.

c.

Congress.

d.

the states.

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 purpose of interstate commerce.

c.

the statute's impact on noneconomic activity.

d.

the state's interest in regulating the matter.

d.

A rule issued by the federal Environmental Protection Agency (EPA) limits the amount of carbon that can be emitted from a car's exhaust system. California state law prescribes much lower limits. Under the U.S. Constitution

a.

the rule and the law are invalid.

b.

the rule and the law apply equally.

c.

the state law takes precedence.

d.

the federal rule takes precedence.

d.

Under the U.S. Constitution, Congress has the power to regulate

a.

only non-commercial activities.

b.

only local commercial enterprises.

c.

every commercial enterprise in the United States.

d.

only intrastate commercial enterprises.

c.

Federal regulations concerning medical devices directly conflict with a certain state law. Under the U.S. Constitution, which law takes precedence is determined by

a.

the privileges and immunities clause.

b.

the full faith and credit clause.

c.

the commerce clause.

d.

the supremacy clause.

d.

NatGas Corporation obtains a federal license to operate a gas pipeline through a certain area of Oregon. The Oregon state legislature enacts a law that bans gas pipelines in that area. Most likely, the state law violates

a.

the due process clause.

b.

the supremacy clause.

c.

the commerce clause.

d.

no provision in the U.S. Constitution.

b.

The state of Florida can regulate building contractors and building codes in the state under its

a.

system of checks and balances.

b.

entitlement to full faith and credit.

c.

commerce power.

d.

police powers.

d.

Bryan creates a website to post threatening messages about celebrities. Under the First Amendment, these messages are most likely protected

a.

none of the time.

b.

only if there are no accompanying ads.

c.

only if the threats can be verified.

d.

all of the time

a.

Rory, the chief executive officer of Spout Off Inc., a website for short rants, claims that certain state and federal government actions infringe on rights guaranteed by the Bill of Rights. Most of these guarantees have been held to limit

a.

federal and state actions.

b.

only the power of the federal government.

c.

only the claims of individuals.

d.

only the conduct of corporations and other commercial entities.

a.

The Bill of Rights embodies

a.

rights established under deeds, wills, contracts, and similar instruments.

b.

the privileges and immunities of the citizens in the several states.

c.

a series of protections for the individual against government action.

d.

payment in the form of taxes by business entities to obtain certain rights.

c.

Alix posts a podcast on the Believe! website in which she insists that Congress base all federal law on her religious principles. Under the First Amendment, Alix is guaranteed

a.

the right to a review of her opinion in due process.

b.

the power to delegate her view to the federal government.

c.

the freedoms of religion and speech.

d.

the right to fair payment for her podcast.

c.

The members of Climate Action believe that a recently enacted federal law is unconstitutional. They write and sign a petition to the government to repeal the law, refuse to obey it, and stop others from complying with it. Under the First Amendment, these individuals have a right to

a.

stop others from complying with any law.

b.

refuse to obey any law with which they disagree.

c.

none of the choices.

d.

petition the government.

d.

Centre City enacts an ordinance that bans the distribution of all printed materials on city streets. Diners Café opposes the city's latest "revenue-enhancing" measure—a tax on prepared food sales—and wants to protest by distributing handbills. In Diners' suit against the city, a court would likely hold the ban on printed materials to be

a.

unconstitutional under the commerce clause.

b.

constitutional under the First Amendment.

c.

unconstitutional under the First Amendment.

d.

not subject to the U.S. Constitution.

c.

Power Company creates a t-shirt design to express support for state tax credits favoring the use of energy-efficient products. The firm distributes the t-shirts to many of its customers. The t-shirts are an example of

a.

commercial speech.

b.

symbolic speech.

c.

illegal speech.

d.

unprotected speech.

b.

Dom burns a U.S. flag in his backyard. He films the activity and posts the video on YouTube.com. Dom's conduct is most likely

a.

subject to reasonable restrictions under the due process clause.

b.

expressly prohibited by the Constitution.

c.

given strict scrutiny under the equal protection clause.

d.

protected by the First Amendment.

d.

Pharma Corporation expresses opinions on political issues through its financial contributions to political action committees and other groups. Under the First Amendment, Pharma's "expression" is most likely

a.

prohibited.

b.

discouraged.

c.

prescribed.

d.

protected

d.

Utah 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.

justified by the need to protect individual rights.

c.

constitutional under the First Amendment.

d.

an unconstitutional restriction of speech.

d.

Metro City enacts an ordinance that bans the use of "sound amplifying systems" on public streets. Niles wants to campaign for a seat on the city council by broadcasting his message through speakers mounted on a truck. In Niles's suit against the city, a court would likely hold the ordinance to be

a.

constitutional under the First Amendment.

b.

necessary to protect national interests.

c.

an unconstitutional restriction of speech.

d.

justified by the need to protect individual rights.

a.

Under the First Amendment, in comparison with noncommercial speech, the protection given commercial ads is

a.

equally extensive.

b.

non-existent.

c.

more extensive.

d.

not as extensive.

d.

Mind Games Inc. markets a variety of shooting, fighting, and hunting video games. A state statue is enacted to require all game makers to label any games with an option to kill something as "excessively violent." A court would likely hold this regulation to be

a.

constitutional under the First Amendment.

b.

justified by the need to protect individual rights.

c.

necessary to protect national interests.

d.

an unconstitutional restriction of speech

d.

Congress enacts the Ad Restriction Act (ARA) to limit advertising in certain circumstances. The ARA will be considered valid if it directly advances a substantial government interest

a.

and goes no further than necessary to achieve its objective.

b.

and the parties affected by it can elect how "far" to go in applying it.

c.

without regard to how "far" it goes.

d.

and goes further than necessary to ensure full coverage.

a.

Pat stands in front of Rogue's Tavern, shouting "fighting words" that are likely to incite Rogue's patrons to respond violently. The First Amendment protects such speech

a.

only if it is noncommercial.

b.

none of the time.

c.

only if it is symbolic.

d.

all of the time.

b.

Book Stop, a bookstore in Capital 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

a.

constitutional under the First Amendment.

b.

a violation of corporations' rights to certain privileges.

c.

an invalid invasion of individuals' privacy.

d.

an unconstitutional restriction of speech.

d.

Kansas enacts a law requiring all businesses in the state to donate 10 percent of their profits to Protestant churches that provide certain services to persons whose income is below the poverty level. Lo-Price Stores files a suit to block the law's enforcement. The court would likely hold that this law violates

a.

the free exercise clause.

b.

the supremacy clause.

c.

the establishment clause.

d.

no clause in the U.S. Constitution.

c.

Under the First Amendment, in comparison with commercial speech, the protection given obscene speech is

a.

more extensive.

b.

non-existent.

c.

not as extensive.

d.

equally extensive.

b.

Mia claims that a North Carolina state statute infringes on her "procedural due process" rights. This claim focuses on

a.

the treatment of similarly situated individuals.

b.

the steps to be taken to protect Mia's privacy.

c.

the content of the statute.

d.

procedures used in making decisions to take life, liberty, or property.

d.

ared claims that a Kentucky state statute infringes on his "substantive due process" rights. This claim focuses on

a.

procedures used to make decisions to take life, liberty, or property.

b.

the treatment of similarly situated individuals.

c.

the content of the statute.

d.

the steps to be taken to protect Orin's privacy

c.

River City enacts an ordinance that prohibits all advertising on the sides of trucks. A court would likely review this ordinance under the principles of

a.

interstate commerce.

b.

equal protection.

c.

due process

d.

free exercise.

c.

To reduce traffic, Market Town enacts an ordinance that allows only a few specific street vendors to operate in certain areas. A court would likely review this ordinance under the principles of

a.

free exercise.

b.

interstate commerce.

c.

equal protection.

d.

free speech.

c.

Jon, a law enforcement official, monitors Kelsey's Internet activities—e-mail and website visits—to gain access to her personal financial data and student information. This may violate Kelsey's right to

a.

privacy.

b.

privileges and immunities.

c.

free exercise.

d.

free speech.

a.