LEGL 3301 Exam 1

Laws and government regulations affect almost all business activities.

Laws and government regulations affect almost all business activities.

True

The U.S. Constitution is the basis of all law in the United States.

True

A citation identifies the publication in which a legal authority can be found.

True

Common law is a term for the laws that are familiar to most of us.

False

Decisions by higher courts are not binding on lower courts.

False

Stare decisis is a doctrine obligating judges to help persons who have failed to protect their own rights.

False

Courts are not obligated to follow precedents.

False

In most legal controversies, there is one single correct result.

False

The party against whom a lawsuit is brought is the plaintiff or petitioner.

False

When all the judges (or justices) agree on a decision, a majority opinion is written for the entire court.

False

In a federal form of government, the national government does not share sovereign power with the states.

False

The checks and balances in the U.S. Constitution prevent any one branch of government from exercising too much power.

True

The states can establish laws and regulations that would interfere with trade and commerce among themselves.

False

The breadth of the commerce clause permits the government to legislate only in areas in which Congress has explicitly been granted power.

False

Under the supremacy clause, a valid federal statute or regulation will take precedence over a conflicting state or local law or regulation on the same general subject.

True

The Bill of Rights protects individuals, but not business entities, against various types of interference by the government.

False

According to the United States Supreme Court, the First Amendment prevents limits from being placed on independent political expenditures by corporations.

True

Keralyn creates a Web site to post threatening messages about celebrities. The First Amendment protects such speech

None of them.

An overemphasis on long

run profit maximization is the most common reason that ethical problems occur in business.

An action may be legal but not ethical.

True

The FCPA is a criminal law.

True

In making business decisions, Ridgeline Utility Service Company and other corporations should strive to be "good citizens" by evaluating

the safety risks for consumers and employees

the public relations impact

the legal implications of each decision

Palette Paints, Inc. expends funds and takes steps to ensure that all employees are safe on the job, that all products are safe for consumers, and that the environmental impact of the corporation is minimal. Palette Paints appears to believe in the concept of

corporate social responsibility

GetTogether, A Social Media Company encourages its managers to behave ethically, reasoning that lower

level employees will take their cues from management. One of the most important ways to create and maintain an ethical workplace is for GetTogether's management to

The federal courts are superior to the state courts.

False

A court can exercise jurisdiction over property that is located within its boundaries.

True

To have standing to sue, the complaining party must have a sufficient stake in a matter to justify seeking relief through the court system.

True

A court's review of an arbitrator's award may be restricted.

True

International treaties never stipulate arbitration for resolving disputes.

False

As a judge in a federal court, Christine can decide, among other things, whether the laws or actions of the executive and legislative branches are constitutional. The process for making this determination is known as

judicial review

A Maryland state court can exercise jurisdiction over National Insurance Corporation, an out

of

Arnold loses his suit against Buffy in a Texas state trial court. Arnold appeals to a state intermediate court of appeals and loses again. Arnold would appeal next to

the Texas Supreme Court

The Iowa Supreme Court rules against Jennifer in a case against Kut

Rate Stores, Inc. Jennifer wants to appeal her case to the United States Supreme Court. She must ask the Court to issue a writ of

Donatello files a suit against Erasmus. Before going to trial, the parties meet, with their attorneys to represent them, to try to resolve their dispute without the involvement of a third party. This is

negotiation

Orson files a suit against Portia. Before going to trial, the parties meet, with their attorneys to represent them, to present their dispute to a third party who is not a judge but who imposes a resolution on the parties. This is

arbitration

Transnational Corporation and United Shipping, Inc., agree to a contract that includes an arbitration clause. If a dispute arises, a court having jurisdiction may

order a party to submit to arbitration

A clause in a contract between Tall Timber Corporation, a U.S. firm, and Wang Woods, Ltd., a Japanese firm, specifies that disputes over the contract will be adjudicated in the United States. This is

a forum

Procedural law does not have a significant impact on a person's ability to pursue a legal claim.

False

The litigation process has three phases: filing, answering, and appealing.

False

Interrogatories are written questions for which written answers are prepared by a judge.

False

Any written material, including information stored electronically, can be the object of a discovery request.

True

A court of appeals does not consider new evidence.

True

It is guaranteed that any judgment will be enforceable.

False

Neville files a suit against Olina. If Olina fails to respond,

Olina may have a default judgment entered against her.

Renewable Resources, Inc., files a suit against Sunrich Utility Company and seeks to examine certain documents in Sunrich's possession. A legitimate reason for this examination is that the documents contain

information that is relevant to the case.

To prepare for a trial between SmartPhones, Inc., and TechApps Company, TechApps' attorney places SmartPhones' chief executive officer (CEO) under oath. A court official makes a record of the attorney's questions and the CEO's answers. This is

a deposition

During the trial phase of Sof' Drink Soda Corporation's suit against TimeOut Convenience Stores, Inc., their attorneys engage in voir dire. This is

the selection of jurors

Two notions serve as the basis for all torts: wrongs and compensation.

True

A successful defense releases the defendant from partial or full liability for a tortious act.

True

There are three broad classifications of torts: intentional torts, unintentional torts, and accidental torts.

False

Specifically targeting the customers of a competitor is always a legitimate business practice.

False

Hayley is injured in an incident precipitated by Isolde. Hayley files a tort action against Isolde, seeking to recover for the damage suffered. Damages that are intended to compensate or reimburse a plaintiff for actual losses are

compensatory damages

Dom, an EZ Baked Goods salesperson, follows Flora, a salesperson for Gooey Pastries, Inc., as she attempts to make sales to food stores. Dom solicits each of Flora's customers. Dom is most likely liable for wrongful interference with a

business relationship

OK Dry

Cleaning advertises so effectively that the regular customers of its competitor Purity Cleaners patronize OK instead of Purity. This is

In advertising circulars, Lo

Price Autos falsely accuses Hi

Oliver slips and falls on Port Harbor's Tour Boat and is injured. Oliver files a suit against Port Harbor for $500,000. If Oliver is 20 percent at fault and Port Harbor is 80 percent, under the "50 percent rule" comparative negligence principles, Oliver would recover

$400,000

The extreme risk of an activity is a defense against imposing strict liability.

False

People who keep domestic animals are strictly liable for any harm inflicted by the animals.

False

A product liability action based on negligence does not require privity of contract between the injured plaintiff and the defendant

manufacturer.

The law imposes strict product liability as a matter of public policy based in part on the assumption that manufacturers can better bear the costs associated with injuries caused by their products.

True

There is a duty to warn about risks that are obvious or commonly known.

False

Roadbuilders, Inc., uses dynamite in its operations. Sky

Hi Fireworx, Inc., stores explosives in its warehouses. Most likely liable under the doctrine of strict liability for any injury caused by an abnormally dangerous activity will be

Luke is playing a video game on a defective disk that melts in his game player, starting a fire that injures his hands. Luke files a suit against Mystic Maze, Inc., the game's maker, under the doctrine of strict liability. A significant application of this doctrine is in the area of

product liability

Good Cookin' Products Company makes heat convection ovens. Heidi discovers that her Good Cookin' oven is defective and sues the maker for product liability based on strict liability. To win, Heidi must show that she

suffered an injury cased by the defect

The brakes on a train owned by Rolling Stock Railway Inc. malfunction. The train rolls towards maintenance workers on the tracks. Everyone gets out of the way except Sid, who wants to show off. The train hits Sid, who sues Train Components, Inc., the brakes' manufacturer. Train Components can raise the defense of

assumption of risk

Garage Magic, Inc., contracts for the sale of a certain number of garage door openers to Home & Yard Hardware stores. Ian buys one of openers. The applicable statute of limitations prescribes a period of four years. To bring a product liability claim against Garage Magic, Ian must file a suit within four years of

Ian's discovery of an injury caused by the opener

Assume that Congress passes a law establishing a new administrative agency to oversee cyberterrorism issues. The agency writes rules to enable itself to carry out its duties. The rules written by the agency will be known as:

administrative law

The Indiana state legislature passes a law increasing the minimum jail time for repeat violent offenders. This law becomes part of a body of law known as:

statutory law

The National Conference of Commissioners on Uniform State Laws (NCCUSL) passes a new uniform act related to texting while driving. This uniform act:

becomes the law in every state that adopts the uniform act through legislative action

Richard is a state appeals court judge. In making judicial decisions, Richard issues rulings that are consistent with precedents established in similar cases within his jurisdiction. Richard is following the principle of:

stare decisis

All of the cases that have been decided by U.S. judges, as well as by English judges prior to the American Revolution, constitute a body of law known as:

the common law

Sarah prevails in her lawsuit against Carl for injuries she sustained in a car accident. As a result, Sarah is entitled to a remedy. In the U.S. legal system, Sarah's remedy will most likely be in the form of:

damages

A case comes before a Wisconsin state trial court on the subject of free speech on the internet. It is a case of first impression, meaning that no case involving the same issue has been decided by the Wisconsin courts. In deciding such a case, it would not be considered proper for the judge to consider:

equitable maxims

Tyler believes that some laws passed by his state's legislature are bad, and he refuses to comply with them. He believes that there is a universal law above all others that grants rights to all people and that it is above all other laws. Tyler subscribes to what school of jurisprudential thought?

The natural law school

Monroe is reviewing an appellate case for class and must correctly identify the parties to the case. In the case, the original defendant (Franklin) is appealing his conviction by the State of Idaho. In the appeals case, Franklin is known as the:

appellant

The city of Flagstaff passes legislation to make it illegal to carry an open container of alcohol on any city street at any time. This legislation is called:

an ordinance

Joseph is appointed to serve as an officer for a federal agency. He is appointed by the president of the United States and confirmed by the U.S. Senate. He is to serve for a six

year fixed term and cannot be removed without cause (even if there is a change in the president). Joseph is most likely serving in:

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:

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:

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

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 speaking 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

Marshall owns and operates a construction firm. He uses inexpensive and low

grade building products and accepts inferior carpentry work from his subcontractors. Nevertheless, Marshall complies with all the city building codes as well as all state and federal laws. Has he fulfilled all of his ethical obligations?

Ted is the owner and chief executive officer of a business. He recently began an advertising campaign to promote a new product that is regulated by state law. The law is somewhat unclear. Before launching the campaign, he researched the relevant law and consulted with his attorney in an effort to comply with the law. Nevertheless, the attorney general of his state has filed a lawsuit against him for deceptive advertising. Ted's best defense is that:

he acted in good faith by conducting due diligence and acting accordingly, under an unclear law

Regan owns and manages The Coffee Shoppe. She likes to experiment with different management styles and life philosophies. She recently studied Kantian ethics and asks her employees to begin following Kant's categorical imperative at work. This means that the employees should:

consider their actions in light of the consequences if everyone in society acted the same way

Jeff believes in the principle of rights theory and uses it to make ethical decisions for his business. He must decide whether to expand his business into Asia. Several key employees do not want the business to expand overseas and have threatened to quit if Jeff makes this move. Under the principle of rights theory, he will make this decision by considering:

how his decision will affect the rights of his employees, his consumers, and others

The upper

level management of Nationwide Sales Corporation wants to fire Andy because he is a nonproductive employee. Using a utilitarian approach to business ethics, management would probably consider:

Bernard is the owner and manager of a small auto

parts store. He thinks that talking about business ethics with employees takes time that would be better spent paying attention to customers. He also does not believe that he has a right to tell other people how they should behave. Is Bernard likely to create an ethical workplace with this way of thinking? Why or why not?

Patrick, the human resources manager at Acme Company, must decide how to cut personnel costs. This decision will harm employees who are laid off or fired. Patrick must balance the interests of employees who have been loyal to the firm for a long time against the interests of:

Acme's shareholders