(Test Bank) Business Law Principles And Practices

Goldman,Sigismond, 9

Business

Test Bank

9th Edition

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Test Bank for Business Law Principles And Practices, The downloadable file consists of 343 pages, and the total size of the file is 2.42 MB. Purchase now only for highly discounted price.

Author(s): Goldman, Sigismond

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Chapter 1 —Foundations of Law and the Role of Ethics in Business TRUE/FALSE 1. Law actually refers to the duties imposed upon people requiring them to act in a certain manner. ANS: T PTS: 1 DIF: Difficulty: Easy REF: p. 6 OBJ: LO: 1 -2 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Knowledge 2. Business Ethics is the inquiry into the moral judgment people make in deciding what is right or good in their daily lives. ANS: F PTS: 1 DIF: Difficulty: Easy REF: p. 16 OBJ: LO: 1 -8 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Knowledge 3. The constitution of a state is the primary legal authority for that state. ANS: T PTS: 1 DIF: Difficulty: Easy REF: p. 9 OBJ: LO: 1 -5 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Knowledge 4. A government may take private property without compensation if it is needed for public use. ANS: F PTS: 1 DIF: Difficulty: Easy REF: p. 8 OBJ: LO: 1 -3 NAT: BUSPROG: Reflecti ve Thinking STA: AICPA: BB -Legal KEY: Bloom's: Knowledge 5. The most important influences on the development of law today are criminal law and civil law. ANS: F PTS: 1 DIF: Difficulty: Easy REF: p. 8 OBJ: LO: 1 -4 NAT: BUSPROG: Reflective Thinking STA : AICPA: BB -Legal KEY: Bloom's: Knowledge 6. The Romans developed the concept of a written code, which became known as the Justinian Code. ANS: T PTS: 1 DIF: Difficulty: Easy REF: p. 8 OBJ: LO: 1 -4 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Knowledge 7. English common law is the basis for much of the law in Europe today. ANS: F PTS: 1 DIF: Difficulty: Easy REF: p. 8 OBJ: LO: 1 -4 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB-Legal KEY: Bloom's: Knowledge 8. "Law" refers only to the statutes passed by federal and state legislatures. ANS: F PTS: 1 DIF: Difficulty: Easy REF: p. 9 OBJ: LO: 1 -2 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Knowledg e 9. Laws passed by local governments are called acts. ANS: F PTS: 1 DIF: Difficulty: Easy REF: p. 10 OBJ: LO: 1 -5 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Knowledge 10. Any law, whether enacted by Congress or by a state legislature, may be declared invalid if it conflicts with the Constitution of the United States. ANS: T PTS: 1 DIF: Difficulty: Easy REF: p. 9 OBJ: LO: 1 -5 NAT: BUSPROG: Reflective Thinking STA: AICPA: B B-Legal KEY: Bloom's: Knowledge 11. Administrative regulations have the same force and effect as statutes and court decisions. ANS: T PTS: 1 DIF: Difficulty: Easy REF: p. 12 OBJ: LO: 1 -5 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Knowledge 12. The Environmental Protection Agency is an example of a federal administrative agency. ANS: T PTS: 1 DIF: Difficulty: Easy REF: p. 12 OBJ: LO: 1 -5 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Comprehension 13. Criminal law includes rules that protect society. ANS: T PTS: 1 DIF: Difficulty: Easy REF: p. 13 OBJ: LO: 1 -6 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Knowledge 14. Because equity is so important, special equity cour ts have been established within the state court system. ANS: F PTS: 1 DIF: Difficulty: Easy REF: p. 14 OBJ: LO: 1 -6 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Knowledge 15. Violations of business ethics occur only in large c orporations. ANS: F PTS: 1 DIF: Difficulty: Easy REF: p. 18 OBJ: LO: 1 -8 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Knowledge MULTIPLE CHOICE 1. A major reason rules or laws were first established was to a. provide jobs for people. b. restrict people's movement in society. c. make it possible for the majority to rule the rest. d. protect the rights of individuals against acts by others. ANS: D PTS: 1 DIF: Difficulty: Moderate REF: p. 7 OBJ: LO: 1 -3 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Knowledge 2. The Social Security system is an example of using law to a. settle disputes. b. promote worthwhile social objectives. c. protect property. d. protect society. ANS: B PTS: 1 DIF: Difficulty: Easy REF: p. 8 OBJ: LO: 1 -3 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Comprehension 3. The body of legal decisions made by English court judges over a period of many years was called a. constitutional law. b. administrative law. c. statute law. d. common law. ANS: D PTS: 1 DIF: Difficulty: Easy REF: p. 8 OBJ: LO: 1 -4 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Knowledge 4. Law in the United States is derived primarily from a. constitutions, statutes, and ordinances. b. court decisions. c. administrative regulations. d. all of these. ANS: D PTS: 1 DIF: Difficulty: Easy REF: p. 9 OBJ: LO: 1 -5 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Knowledge 5. The practice of following precedents in deciding later cases is known as a. stare decisis . b. equity. c. statute law. d. moral law. ANS: A PTS: 1 DIF: Difficulty: Easy REF: p. 9 OBJ: LO: 1 -4 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Knowledge 6. The supreme law in the United States is a. the constitutions of the various states. b. decisions made by courts. c. administrative regulations. d. the U.S. Constitution. ANS: D PTS: 1 DIF: Difficulty: Easy REF: p. 9 OBJ: LO: 1 -5 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Knowledge 7. A city council passed a local law restricting the use of water for car washing and lawn watering during a very dry season. This law is an example of a. common law. b. case la w. c. administrative law. d. an ordinance. ANS: D PTS: 1 DIF: Difficulty: Moderate REF: p. 10 OBJ: LO: 1 -5 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Application 8. The body of written law that defines the rights and duties of individuals and describes the power and limitations of the government is known as a. business law. b. common law. c. constitutional law. d. moral law. ANS: C PTS: 1 DIF: Difficulty: Easy REF: p. 9 OBJ: LO: 1 -5 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Comprehension 9. It is not within the power of states to regulate a. zoning. b. postal delivery. c. marriage. d. traffic control. ANS: B PTS: 1 DIF: Difficulty: Moderate REF: p. 11 OBJ: LO: 1 -5 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Comprehension 10. Another name for common law is a. written law. b. equity law. c. administrative law. d. case law. ANS: D PTS: 1 DIF: Difficulty: Easy REF: p. 11 OBJ: LO: 1 -5 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Comprehension 11. An illustration of common law is a. the constitution of a particular state. b. the Constitution of the United States. c. a statute enacted by a legislative body. d. decisions of federal and state courts. ANS: D PTS: 1 DIF: Difficulty: Moderate REF: p. 11 OBJ: LO: 1 -5 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Comprehension 12. A Federal Communications Commission restriction on the amount of prescription drugs permitted on television is an example of a. administrative law. b. constitutional law. c. common law. d. statutory law. ANS: A PTS: 1 DIF: Difficulty: Moderate REF: p. 12 OBJ: LO: 1 -5 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Application 13. Laws regulating the rights and obligations of individuals in relationship to each other are called a. civil laws. b. criminal laws. c. constitutional laws. d. administrative laws. ANS: A PTS: 1 DIF: Difficulty: Easy REF: p. 13 OBJ: LO: 1 -6 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Comprehension 14. Higgins willfully and maliciously set fire to his neighbor's garage. The branch of law that would govern Higgins' action is a. moral law. b. criminal law. c. the law of equity. d. administrative law. ANS: B PTS: 1 DIF: Difficulty: Moderate REF: p. 13 OBJ: LO: 1 -6 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Application 15. Grimes is suing Winkler for damages brought about when Winkler breached a contract with Grimes. Assuming that both parties lived in the state of Nevada, the case will appear on the court docket as a. Winkler v. State of Nevada . b. Winkler v. Grimes . c. Grimes v. Winkler . d. State of Nevada v. Winkler . ANS: C PTS: 1 DIF: Difficulty: Moderate REF: p. 13 OBJ: LO: 1 -6 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Application 16. Laws that are enacted by legislative bodies forbidding conduct that is considered harmful to society and that is subject to punishment are referred to as a. moral law. b. civil law. c. Roman law. d. criminal law. ANS: D PTS: 1 DIF: Difficulty: Easy REF: p. 13 OBJ: LO: 1 -6 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Comprehension 17. Remedies available in a civil action include all of the following except a. damages. b. ordering a person to refrain from certain conduct. c. ordering a person to perform a certain act. d. a prison term. ANS: D PTS: 1 DIF: Difficulty: Easy REF: p. 13 OBJ: LO: 1 -6 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Comp rehension 18. The relief granted in a civil action is a. punishment. b. money damages. c. having a person arrested. d. bringing an action against society. ANS: B PTS: 1 DIF: Difficulty: Easy REF: p. 13 OBJ: LO: 1 -6 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Comprehension 19. In making a distinction between law and equity, which of the following is a correct statement concerning the distinction? a. Law provides different remedies than those ava ilable in equity. b. Equity grants relief in accordance with fair and just principles. c. One possible remedy in a court of equity is specific performance. d. All of these. ANS: D PTS: 1 DIF: Difficulty: Moderate REF: p. 13 -14 OBJ: LO: 1 -6 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Comprehension 20. The Uniform Commercial Code governs a. violations of civil law. b. equity cases. c. business transactions. d. citizens' rights. ANS: C PTS: 1 DIF: Difficulty: Easy REF: p. 15 OBJ: LO: 1 -7 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Comprehension COMPLETION 1. The rules established by government to regulate the conduct of individuals and groups in a society are called ____________________. ANS: law PTS: 1 DIF: Difficulty: Easy REF: p. 6 OBJ: LO: 1 -2 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Knowledge 2. An important concept in our legal system is that the law protects people but, at the same time, imposes legal ____________________ upon them. ANS: duties PTS: 1 DIF: Difficulty: Easy REF: p. 6 OBJ: LO: 1 -2 NAT: BUSPROG: Reflecti ve Thinking STA: AICPA: BB -Legal KEY: Bloom's: Comprehension 3. Common law had its beginnings in ____________________. ANS: England PTS: 1 DIF: Difficulty: Easy REF: p. 8 OBJ: LO: 1 -4 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Knowledge 4. One of the first printed books containing important decisions of English court judges was ____________________ Commentaries. ANS: Blackstone's PTS: 1 DIF: Difficulty: Easy REF: p. 9 OBJ: LO: 1 -4 NAT: BUSPROG : Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Knowledge 5. Most state constitutions are modeled after the ____________________. ANS: U.S. Constitution PTS: 1 DIF: Difficulty: Easy REF: p. 9 OBJ: LO: 1 -5 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Knowledge 6. Laws passed by Congress are called ____________________. ANS: acts PTS: 1 DIF: Difficulty: Easy REF: p. 10 OBJ: LO: 1 -5 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Lega l KEY: Bloom's: Knowledge 7. ____________________ is concerned with the relationships between and among individuals. ANS: Civil law PTS: 1 DIF: Difficulty: Moderate REF: p. 13 OBJ: LO: 1 -6 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Comprehension 8. Two remedies available to persons at equity are ____________________ and ____________________. ANS: injunction; specific performance specific performance; injunction PTS: 1 DIF: Difficulty: Easy REF: p. 14 OBJ: LO: 1 -6 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Knowledge 9. The State of Tennessee v. Peterson is an example of a case title indicating a(n) ____________________ action. ANS: criminal PTS: 1 DIF: Difficulty: Moderate REF: p. 13 OBJ: LO: 1 -6 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Application 10. The subject of contracts is governed by ____________________ law. ANS: civil PTS: 1 DIF: Difficulty: Moderate REF: p. 13 OBJ: LO: 1 -6 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Comprehension SHORT ANSWER 1. What were the two greatest influences on the development of law in the United States? ANS: Roman law and the English common law. PTS: 1 DIF: Difficulty: Easy REF: p. 8 OBJ: LO: 1 -4 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Knowledge 2. What are the four sources of law in the United States? ANS: Constitutions, statutes, court decisions, and administrative regulations. PTS: 1 DIF: Difficulty: Easy REF: p. 9-12 OBJ: LO: 1 -5 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Knowledge 3. What is the advantage of relying on prior court decisions (stare decisis doctrine) to decide future cases? ANS: Predictability. Established court decisions allow judges, attorneys, and people in general to a ct in a certain way knowing that there is existing precedent to rely on when emerging cases involving similar disputes arise. PTS: 1 DIF: Difficulty: Moderate REF: p. 11 OBJ: LO: 1 -4 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Comprehension 4. Mention a basic distinction between suing at law and suing in equity. ANS: In a court of law, a person who sues another and is successful receives money damages. If money damages are unsuitable as a remedy, a court of equity m ay allow a person to seek nonmonetary relief, such as ordering a person to perform a certain act (specific performance) or to refrain from certain conduct (injunction). PTS: 1 DIF: Difficulty: Moderate REF: p. 13 -14 | p. 14, Table 1.2 OBJ: LO: 1 -6 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Comprehension 5. Based on the information in the text, name three ethical challenges faced by business owners and managers in the workplace. ANS: Privacy issues; restrictions placed on empl oyees; sexual harassment; behavior that significantly influences work performance; management style. PTS: 1 DIF: Difficulty: Moderate REF: p. 19 -20 OBJ: LO: 1 -9 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Knowledge Chapter 2 —The Legal System in the United States and Its Constitutional Foundation TRUE/FALSE 1. The United States has two separate and distinct court systems: the federal court system and the state and local court system. ANS: T PTS: 1 DIF: Difficulty: Easy REF: p. 27 OBJ: LO: 2 -1 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's : Knowledge 2. A trial court has the power to hear an appeal of a decision of a lower court. ANS: F PTS: 1 DIF: Difficulty: Moderate REF: p. 27 OBJ: LO: 2 -1 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Comprehension 3. Courts enforce law by imposing punishment for violations or awarding damages to ones who have been injured. ANS: T PTS: 1 DIF: Difficulty: Easy REF: p. 27 OBJ: LO: 2 -1 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Knowledge 4. The federal court system varies from one area of the country to another. ANS: F PTS: 1 DIF: Difficulty: Moderate REF: p. 27 OBJ: LO: 2 -1 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Comprehension 5. "Jurisdiction over the perso n" means that a court has the power to hear a case because it has authority over the parties. ANS: T PTS: 1 DIF: Difficulty: Easy REF: p. 28 OBJ: LO: 2 -1 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Knowledge 6. Both the U.S. district courts and the U.S. courts of appeal have jurisdiction to review decisions of the highest state courts. ANS: F PTS: 1 DIF: Difficulty: Easy REF: p. 39 OBJ: LO: 2 -3 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Knowledge 7. The U.S. Supreme Court was established by an act of Congress. ANS: F PTS: 1 DIF: Difficulty: Easy REF: p. 39 OBJ: LO: 2 -3 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Comprehension 8. At least four out of nine justices must agree to hear an appeal from a state or federal court before a case comes before the U.S. Supreme Court. ANS: T PTS: 1 DIF: Difficulty: Moderate REF: p. 41 OBJ: LO: 2 -3 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Comprehension 9. The U.S. system of government is based on a concept known as separation of powers. ANS: T PTS: 1 DIF: Difficulty: Easy REF: p. 43 OBJ: LO: 2 -5 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Knowledge 10. Both statute law and case law are used in the United States legal system to reach decisions in civil lawsuits and criminal actions. ANS: T PTS: 1 DIF: Difficulty: Moderate REF: p. 43 OBJ: LO: 2 -5 NAT: BUSPROG: Reflective Thinkin g STA: AICPA: BB -Legal KEY: Bloom's: Comprehension 11. Our legal system operates within the framework of litigation. Litigation refers to a lawsuit or legal action. ANS: T PTS: 1 DIF: Difficulty: Easy REF: p. 44 OBJ: LO: 2 -5 NAT: BUSPROG: Reflective T hinking STA: AICPA: BB -Legal KEY: Bloom's: Knowledge 12. In the United States, courts have the power to offer advisory opinions and answer hypothetical questions put to them by attorneys. ANS: F PTS: 1 DIF: Difficulty: Easy REF: p. 44 OBJ: LO: 2 -5 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Comprehension 13. The Supreme Court case of Marbury v. Madison established the basis for the concept of judicial review in our legal system. ANS: T PTS: 1 DIF: Difficulty: Moderate REF: p. 43 OBJ: LO: 2 -5 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Knowledge 14. The Fourth Amendment guar antees the individual's right to free speech. ANS: F PTS: 1 DIF: Difficulty: Moderate REF: p. 45 OBJ: LO: 2 -5 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Comprehension 15. The first ten amendments to the U.S. Constitution are known as the Bill of Rights. ANS: T PTS: 1 DIF: Difficulty: Easy REF: p. 45 OBJ: LO: 2 -5 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Knowledge MULTIPLE CHOICE 1. The power of courts to hear and decide a case is known as a. jurisdiction. b. constitutionality. c. judicial review. d. accommodation of interests. ANS: A PTS: 1 DIF: Difficulty: Easy REF: p. 27 OBJ: LO: 2 -1 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Knowledge 2. The role of an appellate court is to a. try a case for the first time. b. review a case that has already been tried in a lower court. c. select a jury to help decide a case. d. select attorneys to present a case. ANS: B PTS: 1 DIF: Difficulty: Easy REF: p. 27 OBJ: LO: 2 -1 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Knowledge 3. A court of original jurisdict ion is called a a. trial court. b. higher court. c. review court. d. criminal court only. ANS: A PTS: 1 DIF: Difficulty: Easy REF: p. 27 OBJ: LO: 2 -1 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Knowledge 4. A court that has the power to hear almost any case brought before it is considered to have a. appellate jurisdiction. b. general jurisdiction. c. constitutional jurisdiction. d. limited jurisdiction. ANS: B PTS: 1 DIF: Difficulty: Easy REF: p. 28 OBJ: LO: 2 -1 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Knowledge 5. A small claims court is an example of a(n) a. appellate court. b. criminal court. c. district court. d. local court. ANS: D PTS: 1 DIF: Difficulty: Easy REF: p. 31 OBJ: LO: 2 -2 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Comprehension 6. Most state court systems include all of the following except a. lower -level trial courts. b. an appellate court of final resort. c. intermediate -level appeals courts. d. bankruptcy courts. ANS: D PTS: 1 DIF: Difficulty: Moderate REF: p. 29 OBJ: LO: 2 -2 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Comprehension 7. A federal court has limited jurisdiction in a a. small claims action. b. constitutional issue. c. murder case. d. bankruptcy case. ANS: D PTS: 1 DIF: Difficulty: Moderate REF: p. 38 OBJ: LO: 2 -3 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Comprehension 8. The federal court system was established by a. a mandate from the public. b. Congress. c. Article III, Section I of the Constitution. d. a vote of the judges on the Supreme Court. ANS: C PTS: 1 DIF: Difficulty: Easy REF: p. 37 OBJ: LO: 2 -3 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Knowledge 9. The trial courts in the federal court system are called a. U.S. district courts. b. criminal courts. c. tax courts. d. bankruptcy courts. ANS: A PTS: 1 DIF: Difficulty: Easy REF: p. 38 OBJ: LO: 2 -3 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Knowledge 10. The Supreme Court of the United States derives its judicial power from the a. U.S. Constitution. b. U.S. president. c. U.S. Congress. d. state courts. ANS: A PTS: 1 DIF: Difficulty: Easy REF: p. 39 OBJ: LO: 2 -3 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Comprehension 11. The thirteen intermediate courts of appeal of the federal court system are called a. circuit courts. b. district courts. c. claims courts. d. supreme courts. ANS: A PTS: 1 DIF: Difficulty: Easy REF: p. 39 OBJ: LO: 2 -3 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Comprehension 12. The only court actually provided for by name in the U.S. Constitution is a. the U.S. Supreme Court. b. the Court of International Trade. c. small claims court. d. commercial claims court. ANS: A PTS: 1 DIF: Difficulty: Easy REF: p. 39 OBJ: LO: 2 -3 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Comprehension 13. A specialized federal court is a. a U.S. district court. b. a U.S. court of appeals. c. a U.S. claims court. d. none of these. ANS: C PTS: 1 DIF: Difficulty: Moderate REF: p. 38 OBJ: LO: 2 -2 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Comprehension 14. What are the grounds for trying a case in a federal court? a. State crimes and diversity of citizenship b. Only diversity of citizenship cases involving $50,000 or more c. Federal issues and diversity of citizenship d. Bankruptcy and state crimes ANS: C PTS: 1 DIF: Difficulty: Easy REF: p. 38 OBJ: LO: 2 -3 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Comprehension 15. The U.S. Supreme Court consists of a. four justices. b. five justices. c. eight justices. d. nine justices. ANS: D PTS: 1 DIF: Difficulty: Easy REF: p. 41 OBJ: LO: 2 -3 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Knowledge 16. The number of jurors selected for a particular trial will a. depend upon whether the trial is civil or criminal. b. vary according to the particular state where the jurors r eside. c. vary according to the judge's wishes. d. be affected by both whether the trial is civil or criminal and by the particular state where the jurors reside, but not according to the judge's wishes. ANS: D PTS: 1 DIF: Difficulty: Easy REF: p. 43 OBJ: LO: 2 -4 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Knowledge 17. The concept of judicial review w as established by a. Congress. b. the president. c. the judicial branch of government. d. English common law. ANS: C PTS: 1 DIF: Difficulty: Moderate REF: p. 43 OBJ: LO: 2 -5 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Comprehension 18. The right of courts to review the decisions of lower courts is called a. separation of powers. b. judicial review. c. litigation. d. none of these. ANS: B PTS: 1 DIF: Difficulty: Easy REF: p. 43 OBJ: LO: 2 -5 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Knowledge 19. The amendment to the U.S. Constitution that protects the individual's right to privacy by prohibiting unreasonable search and seizure by government is the a. First Amendment. b. Fifth Amendment. c. Fourth Amendment. d. Sixth Amendment. ANS: C PTS: 1 DIF: Difficulty: Easy REF: p. 46 OBJ: LO: 2 -5 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Knowledge COMPLETION 1. "Jurisdiction over the person" means that a court can hear and decide a case because it has authority over the ____________________ in the case. ANS: parties PTS: 1 DIF: Difficulty: Easy REF: p. 28 OBJ: LO: 2 -1 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Knowledge 2. If a court has the power to hear only certain types of cases, it is said to have ____________________ jurisdiction. ANS: limited PTS: 1 DIF: Difficulty: Easy REF: p. 28 OBJ: LO: 2 -1 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Knowledge 3. To provide fast and inexpensive hearings on minor claims, many states have established ____________________ courts. ANS: small claims PTS: 1 DIF: Difficulty : Easy REF: p. 31 OBJ: LO: 2 -2 NAT: BUSPROG: Reflective Thinking STA: AICPA: BB -Legal KEY: Bloom's: Comprehension