(Test Bank) The Legal Environment of Business A Managerial Approach Theory to Practice

Melvin, 4

Business

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4th Edition

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Test Bank for The Legal Environment of Business A Managerial Approach Theory to Practice, The downloadable file consists of 614 pages, and the total size of the file is 3.75 MB. Purchase now only for highly discounted price.

Author(s): Melvin

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Version 1 1 CHAPTER 1 1) A case of first impression comes before a state court in Illinois. While the issue has not been heard in Illinois courts, appellate courts in the states of Wisconsin, Iowa, and Indiana have definitively ruled on the issue, although the outcomes of the various cases were slightly different in each case. Further, the case heard by the Indiana court was definitively ruled upon by the U.S. Supreme Court. Explain whether the court in Illinois is bound by the decision of any of the other courts, and why. 2) Mike is a high school dropout employed as a counter worker at Bob’s Roasted Chicken (BRC), a local fast food franchise in Georgia. Mike is voted Employee of the Month and awarded a trip to visit the home office of BRC in Knoxville, Tennessee. While on a tour of the offices at BRC’s headquarters, Mike notices an open wall safe, and when he looks inside, he discovers the original, handwritten copy of the secret family chicken recipe. He quickly makes a copy and returns the original to the safe. Once he arrives home, he contacts a number of local fried-chicken restaurants and offers to sell them the recipe. When BRC’s president, Bob, discovers what Mike is doing, BRC immediately sues Mike. However, it quickly discovers that there are no applicable trade secret statutes. What effect does the lack of an applicable statute have on BRC’s claim, and what, if anything, can BRC rely upon to maintain its claim? What relief should BRC seek against Mike? 3) Name the three essential functions of the U.S. Constitution.Version 1 2 4) Define and explain the concepts of permanence and preemption as they apply regarding the U.S. Constitution. 5) Congratulations! You have just been named as a judge in your state's general trial court. Your first case involves a complicated environmental statute. What resources might you use to interpret and apply the statute to your case? 6) Describe the similarities and differences among statutes, ordinances, and regulations. Version 1 3 7) Discuss the differences between the common law and civil law with regard to precedent and the court's right to establish new law. 8) Tom has attacked Kathy in the parking lot of a bar. He knocked her to the ground and stole her wallet, breaking her arm in the process. Kathy works as a data input specialist at a bank and missed eight weeks of work due to her injury. Discuss how her case could be handled under both the criminal law and civil law systems, including possible remedies available under each system. 9) Identify and discuss the various types of secondary law. How does secondary law affect the American legal system? 10) In 2010, the state of Arizona passed an immigration law that allowed law enforcement officers to check the immigration status of individuals charged with a crime. Which legal philosophy best fits the theory of jurisprudence used by Arizona lawmakers to justify this law?Version 1 4 11) Much of the origins of the law dealt with issues related to _______. 12) When the United States Supreme Court formally recognized its role in achieving equality for all Americans during the civil rights movement, it was following a ________ philosophy. 13) Attorneys who work for a company and are part of the executive or midlevel management team are specifically referred to as ________ counsel. 14) Attorneys, particularly in a business context, are also referred to as _______. 15) Measures of judicial action intended to compensate an injured party in a civil lawsuit are known as _______. 16) Equitable rules intended to be broad statements of rules that are based on notions of fairness and justice are referred to as equitable _______. 17) A judicial opinion is also referred to as the ________ of the case.Version 1 5 18) A collection of uniform legal principles focused on a particular area of traditional state law is calledThe ________ of the Law. 19) Trial lawyers from outside firms, often selected by general counsel when a particular field of expertise is needed, are referred to as _______. 20) ________ are recognized as binding between two parties even though no specific statute or regulation provides for the rights of the parties. 21) Marlene is a law school professor speaking about the philosophy of law under the British system. Which of the following legal categories is she addressing? A) Statutory construction B) Historical jurisdiction C) Jurisprudence D) Ordinances 22) Which of the following is correct about the law in the United States? A) To be defined as law, something must have been codified by a legislature. B) Law creates duties and obligations, but not rights, as these are exclusively created by constitutions. C) Law is prescribed by controlling authority. D) All of the answer choices are correct. Version 1 6 23) The origins of recorded law are cited by the textbook as being: A) The writings of the British royals who recorded court decisions and then wrote them in a codified system of law. B) A collection of rules of tribal chieftains to perpetuate their power. C) The common law rules adopted by the Founding Fathers of the United States. D) The Justinian Code which standardized the civil law system among the Romans. 24) According to the text, which of the following does the system of law in the United States provide for? A) Good faith dealings between merchants and consumers B) Equality C) Consistency D) All of the answer choices are correct. 25) According to the textbook, which of the following statements about corporate strategy with legal counsel is/are true? A) It is considered a sound strategy for a corporation to rely exclusively on attorneys to drive the legal decision-making process because they are the experts in the law and will generally understand the business side of things better than many corporate managers. B) Research indicates that management working cooperatively with attorneys will add value to the business. C) If one can understand the fundamentals of legal theory and how they impact a business, this is all that is needed to be able to understand how legal decisions should be made in a business context. D) All of the answer choices are correct. Version 1 7 26) According to the textbook, which of the following statements about lawyers is/are true? A) Corporate lawyers typically spend a large percentage of their time in court. B) The general counsel is a phrase for one who works in an outside law firm and handles cases on general business law issues. C) In larger organizations, corporate counsel are often part of the management or executive team. D) All of the answer choices are correct. 27) Donovan works for a corporation as general legal counsel. Which of the following would be typical of the duties that a person in his position would perform in the U.S. legal system? A) Managing one or more associate attorneys B) Selecting and supervising lawyers from outside law firms C) Being a corporate officer of the company, called a secretary D) All of the answer choices are correct. 28) According to the textbook, which of the following statements are true about the typical relationships between corporations and attorneys in the United States? A) Working closely with a business attorney results in opportunities and reduced business costs. B) The majority of companies rely upon in house counsel for their legal needs. C) It is almost unheard of for more than one attorney’s advice to be needed on a legal matter, as consulting more than one attorney leads to confusion and conflicting counsel. D) All of the answer choices are correct. 29) Dalvosta, Georgia has passed a law banning the building of apartment complexes higher than 100 feet. This law would be defined as:Version 1 8 A) an ordinance. B) a regulation. C) a statute. D) a common law. 30) Congress is drafting a piece of legislation that legalizes marijuana. It has not yet passed both Houses of Congress by a majority vote or been signed by the president. This is known as a: A) Statute B) Law C) Draft D) Bill 31) Constitutional law and administrative law are known in the United States as _______________ sources of law. A) Common B) Primary C) Secondary D) Procedural 32) The State of California has passed a law banning the use of poultry meat in restaurants if the chickens were raised in what the legislators defined as "inhumane industrial operations." The law set a fine of $5,000 for restaurants that were in violation and set up an administrative court that would hear appeals from restaurant owners. This law making the use of certain types of poultry illegal is a type of law known as a/an _________________ and the rules that set out the fine and the administrative court are a type of law known as a _________________?Version 1 9 A) Ordinance, procedural law B) Ordinance, substantive law C) Statute, procedural law D) Statute, substantive law 33) Walker, a federal court judge, cited several prior cases in reaching her decision in a case, deciding her case in a manner similar to the cases she cited. This is known in the law as the process of: A) Creating secondary sources of law B) Res ipsa loquitur C) Stare decisis D) Ad hominem reasoning 34) Which of the following is a secondary source of law? A) A regulation passed by a federal agency B) A model law passed as a guide to states in crafting their statutes on healthcare C) A constitutional interpretation of a statute by a federal court of appeals D) All of the answer choices are secondary sources of law. 35) Which of the following is an accurate statement of the concept of stare decisis and precedent under the U.S. legal system?Version 1 10 A) Janet, an attorney, told her client that once precedent is established, it may not be changed except by an amendment to the Constitution or a new law passed by Congress. B) Randall, a judge, told the attorneys in a case that stare decisis is an "iron mold" that cannot be deviated from unless the United States Supreme Court authorizes it. C) Trace, a law student, told a classmate that stare decisis is a secondary source of law. D) Hani, a law professor, told her class that precedent established in New York will have no bearing on cases in neighboring New Jersey. 36) Stare decisis is a Latin phrase that means ____________________________. A) One must not sit upon their rights in a court of equity, you must vigilantly pursue your rights to receive an equitable remedy from a court. B) There can be no law higher than human-made law, there exist no absolutes of right and wrong. C) Similar cases with similar facts and issues should have similar judicial outcomes. D) All of the answer choices are correct. 37) The Immigration and Naturalization Service, a federal agency involved in immigration security, has applied a rule stating that prior to deportation, an individual must be allowed a due process hearing at which they can make a case against their deportation. This would be which of the following types of laws? A) administrative laws B) securities laws C) statutory laws D) ordinances 38) Which of the following statement(s) is/are true?Version 1 11 A) If Heinrich is driving recklessly and smashes his car into Shanna, Heinrich could be both prosecuted and sued for his actions. B) Procedural law sets out the steps that the state of Iowa must take if it wishes to have its agents break into the office of Benjamin and search his computer for evidence of embezzlement. C) In the United States, breach of contract is classified as civil law, and the laws that give a party the right to sue for breach of contract are known as substantive laws. D) All of the answer choices are correct. 39) Luke hit a golf ball from his front yard into a parking lot. The ball smashed the window of Abigail’s car. The type of law that gives Abigail the right to be compensated monetarily for Luke’s conduct is which of the following? A) It is civil and substantive B) It is civil and administrative C) It is criminal and substantive D) It is administrative and procedural 40) The State of Colorado has a law stating that you may not be in possession of more than four ounces of certain controlled drugs. This is an example of which of the following types of law? A) Substantive law B) Procedural law C) Interrogative law D) Interpretive functional law Version 1 12 41) A surgeon accidently severed a nerve in Miranda's back during surgery so she now has numbness in her left leg. Miranda sued to get compensation for her pain and suffering and additional medical expenses as a result of alleged malpractice. The malpractice statute in her state gave her two years from the time she "knew or should have known of the injury" to file a lawsuit. What type of law is the malpractice statute that gives her the right to sue and what type of law is the statute that determines that she has two years to file her claim? A) Private law, Public law B) Substantive law, Procedural law C) Procedural law, Substantive law D) Compensatory law, Punitive law 42) LaQuisha paid Francis for an original Jean-Michel Basquiat painting, but while he accepted her money, he has not given her the painting. Which of the following equitable remedies would be appropriate for LaQuisha to use in her legal proceeding against Francis to compel him to turn over the painting? A) Specific performance B) Injunction C) Rescission D) All of the equitable remedies listed would be appropriate. 43) Aunt Betsey is sick and tired of neighbors who walk their dogs across her front yards. She is considering going to district court to stop the trespassers. What type of remedy should she pursue? A) Specific performance B) Laches C) Rescission D) Injunction Version 1 13 44) The City of Draconia has informed Miko that they are going to evict her from her land and auction it off for nonpayment of $100 in taxes. Miko is contesting the tax bill and wants to stop them from evicting her and auctioning off the land. Which of the following would best enable Miko to accomplish this? A) Specific performance B) Injunction C) Rescission D) A legal remedy 45) Garbo purchased a riding lawnmower from Thrifty mowers for $5,000. It was their standard, top-selling model. Garbo paid in cash and scheduled a delivery for the next day to her house. If Thrifty does not deliver the mower, then refuses to pay back her money, what is the best remedy for Garbo to seek? A) An equitable remedy of an injunction B) An equitable remedy of rescission C) An equitable remedy of specific performance D) A legal remedy for the $5,000. 46) The equitable maxim "substance over form" would best be described by which of the following examples?Version 1 14 A) Raul filed his lawsuit seeking an injunction in district court, but it was dismissed because he filed too late. B) Dugan worked for ABC Corp, which treated him exactly like an employee but called him an outside contractor and did not pay him benefits. The court ruled that Dugan was entitled to benefits and ordered ABC to classify Dugan as an employee. C) Stanley made a motion to the court to deny the equitable remedy that Roger was seeking against him, because Roger had intentionally misrepresented several things in their dealings with one another. D) Gracie sought specific performance against XYZ Corp to have provide her with the company car which was promised to her, but then XYZ entered evidence that Gracie had embezzled from them and the court denied her request. 47) Enrique advertised his custom-made airplane for sale. Wallace offered him $100,000 by email. Enrique told Wallace that he accepted his offer, but that he would have to bring a cashier’s check to his house for $100,000 the next day. Wallace said he’d arrive with the check the next day after work. Wallace arrived at 6 p.m. and when he did, Enrique told him he’d just gotten an offer for $110,000 and that Wallace would have to pay that amount to get the plane. If Wallace sues Enrique, what course of action will best provide him the results he desies? A) Sue for breach of contract and seek a legal remedy. B) Sue for an injunction. C) Bring a suit in equity and seek monetary damages. D) Sue for breach of contract and seek a decree of specific performance. 48) Bart was angry at his neighbor Homer, who had been playing loud hip hop music after midnight every night. In retaliation, Bart had been throwing eggs at Homer's house. Bart has pursued the equitable remedy of an injunction against Homer. What is Homer's best defense to Bart's equitable action under these circumstances?Version 1 15 A) Laches B) Substance over form C) Equity aids the vigilant D) Clean hands 49) Emily went to court to get the court to stop Laura, her neighbor, from driving her car across Emily's property. Laura had been driving across the property for 10 years, and Emily had finally had enough. What defense might Laura have against Emily's claim? A) Laura has no defense because she has done the offending activity for such a long period of time. B) Clean hands C) Substance over form D) Laches 50) Jennifer’s complaining about a patently unfair employment contract she signed. She wants to be released from the terms of the contract, which states in the fine print that she must "Allow the company President to adopt her first-born child". Which of the following would describe the best course of action to get her out of the contract? A) A legal remedy for monetary damages B) Substance over form C) Specific performance D) Rescission 51) Jurisprudence is roughly defined as the science and philosophy of law. ⊚ true ⊚ false