ACCT 2700 - EXAM 1 SAMPLE QUESTIONS

The stability and predictability of the law is essential to business activities.

True

A state constitution is a primary source of law.

True

Even if it conflicts with the US Constitution, a State Constitution is supreme within that state’s borders.

False

A local ordinance is considered statutory law.

True

There is only one right answer to every legal question.

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

Constitutional Law, Statutory Law, Administrative Law, Case Law, and Common Law

Stare Decisis is best described 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 US Constitution is a secondary source of law.

False

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.

In deciding a case of first impression, appropriate sources for a state court to consider include all of the following EXCEPT:

a poll of those present in the courtroom at the time of the decision.

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 US Constitution allows each branch of government to limit the actions of the other balances.

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

When there is a direct conflict between a federal law and a state law, both laws are rendered invalid.

False

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

True

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.

False

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

False

Today the Commerce Clause authorizes the federal government to regulate virtually any business enterprise in any industry.

False

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

The commerce clause

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

The Bill of Rights embodies:

a series of protections for the individual against government action.

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.

False

An individual’s right to privacy is specifically stated and guaranteed in the US 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

The reason the Articles of Confederation were weak was because:

it gave primary power to the states which impeded interstate commerce.

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

False

A court must have proper jurisdiction over a matter in order to hear that case.

True

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

False

The amount of business a corporation does within a state 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 considered a citizen of every 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 he 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.

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.

Hardware Inc. makes hand saw 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.

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

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

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.

True

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 the 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 state court.

False

The US Supreme Court is required to hear an appeal from a US Court of Appeals case:

under no circumstances.

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 facts necessary to show that the party filing the complaint is entitled to relief.

True

A defendant’s motion to dismiss asserts that plaintiff’s complaint failed to state a claim with any basis in law.

True

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

False

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

True

The process of jury selection is an important aspect of litigation
strategy.

True

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.

Barge Company and Cove Harbor dispute the meaning of their contract. Unable to agree on settlement, the parties prepare for trial. To obtain information, they engage in discovery. This includes gaining access to each other’s witnesses and other types of evidence by:

Depositions and other discovery tools.

In Rebuild Company’s suit against Structural Engineers Inc., the plaintiff wants to introduce evidence that it claims is relevant. This is evidence that:

All the choices.

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 the 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 pursuant to an alleged e-mail order. Perry denies the charge. If the e-mail order exists, it is:

evidence that is discoverable.