Business Law Exam 1- Ostendorf

The study of business law does not involve an ethical dimension

False

A state constitution is a primary source of law.

True

Even if it conflicts with the U.S. Constitution, a state constitution is supreme within that states' borders.

False

A federal statute applies only to those states that agree to apply it within their borders.

False

Common law is a body of law developed from judicial decisions and the principles established in those judicial decisions.

True

Primary sources of law include:

common law

Stare Decisis is best best defined as

A doctrine under which judges follow established precedents.

Once a court has applied a principle to a certain set of facts, that principle must generally be applied in future cases involving:

similar facts

At one time, a court of law could grant as a remedy only

monetary damages

The United States is a secondary source of law.

False

A state constitution cannot conflict with the United States Constitution

True

The common law is a body of law developed from judicial decisions and the principles established in those judicial decisions.

True

Courts will generally only change or overrule a precedent if:

the current precedent is clearly wrong, or times have changed and a new precedent is needed

Once a court has applied a principle to a certain set of facts, that principle must generally be applied in future cases involving:

similar facts

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

False

The system of checks and balances in the U.S. Constitution allows each branch of government to limit the actions of the other branches

True

The commerce clause has never been held to support the federal regulation of commercial activities that take place wholly within a state's borders.

False

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

True

Political speech (that is, political campaign contributions) by a corporation falls within the protection of the First Amendment.

True

A corporation is a natural person and is therefore entitled to the privilege against self-incrimination.

False

Under the full faith and credit clause, any judicial decision in one state with respect to contract rights will be honored and enforced in all states.

True

Equal protection means that the government must treat all individuals exactly the same

False

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

Commerce Clause

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

Supremacy Clause

The Bill of Rights embodies

a series of protections for the individual against government action.

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

Protected

A law that distinguishes among individuals based on gender will be analyzed by the court under which standard:

intermediate scrutiny

A corporation is a legal entity (not a natural person) and is therefore not entitled to the privilege against self-incrimination.

True

An individual's right to privacy is specifically stated and guaranteed in the U.S. Constitution.

False

Under the full faith and credit clause, any judicial decision in one state with respect to contract rights will be honored and enforced in all states.

True

In a case involving a law that treats people differently based on race or national origin, what level of scrutiny must the court apply?

strict scrutiny

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

The commerce clause

In the American governmental system, applying the law to specific situations is the essential role of Congress

False

Any court can exercise jurisdiction over any person.

False

Under a state's long-arm statute, a court can exercise jurisdiction only over certain nonresidents.

True

The amount of business a corporation does within a state's can serve to subject or exempt the corporation from that state's jurisdiction.

True

A federal court will apply federal law in a case involving a federal question.

True

A federal court will apply the relevant state law in a diversity of citizenship case.

True

For purposes of diversity of citizenship, a corporation is not considered a citizen of any state

False

In a case involving Internet transactions, jurisdiction is proper only when the defendant conducts substantial business in the jurisdiction online.

False

An element of standing includes the fact that a favorable court decision will be likely to remedy the harm.

True

A question of law is generally the focus of an appellate court.

True

A challenge to the constitutionality of a law or executive order is:

within the power of judicial review

Ivan, a resident of Illinois, owns a warehouse in Alabama. A dispute arises over the ownership of the warehouse with Ginny, a resident of Georgia. Ginny files suit against Ivan in Alabama. Regarding this suit, Alabama has:

In rem jurisdiction

A court's subject matter jurisdiction may be limited by all of the following except:

The prior experience of the court in similar disputes

The jurisdiction of the federal courts is limited because

The federal government has limited powers

The 1803 case of Marburg v. Madison established the power of judicial review, whereby the U.S. Supreme Court has the ability to declare a law unconstitutional.

True

Ty, a citizen of Texas, files suit in a Texas state court against Wash Sales Corporation, a Washington state company that does business in Texas. The Texas state court has original jurisdiction which means:

the case is being heard for the first time

Sarah wants to file suit against Mike. For a court to hear the case:

the court must have proper jurisdiction

Hardware Inc. makes hand saws of substandard quality. Home Building Company has never bought or used a Hardware hand saw, but files a suit against Hardware, alleging that its products are defective. The defendant's best ground for dismissal of the suit is that the plaintiff does not have:

Standing to sue

Any court can exercise jurisdiction over any person.

False

Olivia wants to file a suit against Peter. For a court to hear the case:

the court must have proper jurisdiction

Heather, a resident of Alabama, owns an office building in Georgia. A dispute arises over the ownership of the office building with Jennifer, a resident of Mississippi. Jennifer files a suit against Heather in Georgia. Regarding this suit, Georgia has:

in rem jurisdiction

Larry, a citizen of Florida, wants to file suit against Nathan, a citizen of South Carolina. The diversity of citizenship of the two parties may be a basis for:

a federal court to exercise jurisdiction.

The federal courts are an independent system of courts which are superior to the state courts.

False

An appellate court will not change he a trial court's findings of fact, even if the finding is clearly erroneous.

False

A question of law is generally not the focus of an appellate court

False

Negotiation requires the use of a neutral third party to facilitate a settlement.

False

To use arbitration as a method of dispute resolution, the parties must agree to arbitrate any dispute before it arises.

False

Arbitration differs from other forms of alternative dispute resolution in that a third party hearing a dispute makes a binding decision for the parties.

True

A decision on a question of state law is final when:

the state's highest court makes a decision.

Frank files a suit in a federal district court against Greg. Frank loses the suit, appeals to the US Court of Appeals for the 9th circuit, and loses again. Frank asks the United States Supreme Court to hear the case. The Court is:

not required to hear the case

Jill and Katie, with their attorneys, meet to try to solve a dispute. A neutral third party works with both sides and proposes a solution, but does not make a decision resolving the matter. This is:

mediation

Liz and Mary disagree over the amount due under their contract. To avoid involving a third party in the resolution of their dispute, Liz and Mary could resolve their dispute through:

Negotiation

Negotiation requires the use of a neutral third party to facilitate a settlement.

False

The federal courts are superior to the state courts and only hear cases on appeal from the highest court.

False

The U.S. Supreme Court is required to hear an appeal from a U.S. Court of Appeals case:

Under no circumstances

A decision on a question of state law is final when:

the state's highest court makes a decision.

Carl and David resolve their dispute over Carl's real property by having a neutral third party render a binding decision. This is:

arbitration

Attempts to settle a case must be concluded before the litigation process begins.

False

A complaint contains a brief summary of the facts necessary to show the party filing the complaint is entitled to relief.

True

A motion to dismiss asserts that a claim has no basis in law

True

If a defendant does not answer a complaint within the time plotted by the applicable rules, the plaintiff may seek a default judgement.

True

Discovery is the process of serving a summons and a copy of a complaint on a defendant.

False

A deposition can be used to impeach a party or witness who changes his/her testimony at trial

True

To meet the standard of proof of preponderance of the evidence, a party must prove its case beyond a reasonable doubt.

False

Shippers Warehouse files suit against Trucking Company by filing a complaint. Trucking Company files a motion to dismiss, which asserts that:

Even if the facts in the complaint are true, the defendant is not liable

Radiant Supply wants to initiate a suit against Solar Power LLC by filing a complaint. The complaint should include a statement of the facts necessary to show that

the plaintiff is legally entitled to a remedy.

Sportsfield Inc. files a suit against Tailgate Services. Before the trial, during the jury selection process, Sportsfield's attorney asks, without providing any reason, that one of the potential jurors not be sworn in. This is

a peremptory challenge

ABC Corp files suit against XYZ Inc. and seeks to examine certain documents in the defendant's possession. A legitimate reason for this examination is that the documents contain:

Information relevant to the case

Attempts to settle a case may continue throughout the litigation process.

True

Voir dire refers to the jury selection process.

True

Before a lawsuit is initiated, a plaintiff should consider whether the defendant is able to pay the damages sought.

True

Randy wants to initiate a suit against Sally by filing a complaint. The complaint should include a statement of facts necessary to show that:

The plaintiff is legally entitled to a remedy.

Olivia files a suit against Perry, claiming that Perry failed to pay for goods shipped in response to an alleged e-mail order. Perry denies the charge. If the e-mail order exists, it is:

Evidence that is discoverable