Ostendorf - Business Law Exam 1

(T/F) A statute is the primary source of law

True

(T/F) Even if it conflicts with the U.S Constitution, a state constitution is supreme within that states borders.

False

(T/F) The common law is a body of law developed from judicial decisions and the principles established in those judicial decision.

True

On a challenge to a provision in a state constitution that conflicts with a provision in the U.S Constitution

The state provision will not be enforced

3 multiple choice options

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

similar facts

3 multiple choice options

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

True

(T/F) An individual's right to privacy is specifically stated and guaranteed in the U.S Constitution.

False

(T/F) 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

3 multiple choice options

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

The commerce clause

3 multiple choice options

(T/F) The 1803 case of Marbury v. Madison established the power of judicial review, whereby the U.S Supreme Court has the ability to declare a law unconstitutional.

True

1 multiple choice option

(T/F) Any court can exercise jurisdiction over any person

False

1 multiple choice option

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

The court must have proper jurisdiction

3 multiple choice options

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

3 multiple choice options

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

3 multiple choice options

(T/F) Negotiation requires the use of a neutral third party to facilitate a settlement.

False

1 multiple choice option

(T/F) The federal courts are superior to the state courts and only hear cases on appeal from the state courts.

False

1 multiple choice option

A trial court's ability to directly observe witnesses' gestures, demeanor, and other nonverbal behavior supports the decision of an appellate court to:

defer to the trial court's findings on questions of fact.

3 multiple choice options

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

the state's highest court makes a decision

3 multiple choice options

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

arbitration

3 multiple choice options

(T/F)Attempts to settle a case may continue throughout the litigation process.

True

1 multiple choice option

(T/F) Voir dire refers to the jury selection process.

True

1 multiple choice option

(T/F) Before a lawsuit is initiated, a plaintiff should consider whether the defendant is able to pay the damages sought.

True

1 multiple choice option

Carly files a complaint against Delivery Corporation, charging that she has not been paid and wants to recover the unpaid amount, plus interest. The complaint and a summons will most likely be served on:

the corporation's registered agent

3 multiple choice options

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

3 multiple choice options

(T/F) The Study Of business law does not involve ethical dimensions.

False

1 multiple choice option

(T/F) a state constitution is a primary source of law

True

1 multiple choice option

(T/F) A federal statute applies only to those states that agree to apply it within their borders

False

1 multiple choice option

(T/F) 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

3 multiple choice options

Stare Decisis is best defined as:

A doctrine under which judges follow established precedents.

3 multiple choice options

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

Monetary Damages

3 multiple choice options

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

False

1 multiple choice option

(T/F) The system of checks and balances in the US Constitution allows each branch of government to limit the actions of the other branches.

True

1 multiple choice option

(T/F) 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

1 multiple choice option

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

True

1 multiple choice option

(T/F) Political speech by a corporation falls within the protection of the First Amendment.

True

1 multiple choice option

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

False

1 multiple choice option

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

The supremacy clause

3 multiple choice options

The Bill of Rights embodies

A series of protections for the individual against government action

3 multiple choice options

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

3 multiple choice options

(T/F) In the American governmental system, applying the laws to specific situations is the essential role of Congress.

False

1 multiple choice option

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

True

1 multiple choice option

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

True

1 multiple choice option

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

True

1 multiple choice option

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

True

1 multiple choice option

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.

True

1 multiple choice option

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

True

1 multiple choice option

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

True

1 multiple choice option

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

Within the power of judicial review

3 multiple choice options

A court's subject matter jurisdiction maybe limited by all of the following EXCEPT:

The prior experience of the court in similar disputes

3 multiple choice options

Ty, a citizen of Texas, files suit in 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.

3 multiple choice options

The jurisdiction of the federal courts is limited because:

The federal government has limited powers

3 multiple choice options

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

3 multiple choice options

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

True

1 multiple choice option

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

false

1 multiple choice option

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

False

1 multiple choice option

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

1 multiple choice option

State trial courts that are called county, district, superior or circuit courts are most likely to be courts of:

General Jurisdiction

3 multiple choice options

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

3 multiple choice options

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

3 multiple choice options

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

3 multiple choice options

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

True

1 multiple choice option

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

True

1 multiple choice option

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

True

1 multiple choice option

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

False

1 multiple choice option

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

True

1 multiple choice option

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

False

1 multiple choice option

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

3 multiple choice options

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.

3 multiple choice options

Sportsfield, Inc. files suit against TailgateServices. Before the trial, during jury selection, Sportsfield's attorney asks, without providing any reason, that one of the jury pool members be removed. This is:

A peremptory Challenge

3 multiple choice options

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

3 multiple choice options