(Test Bank) Business Law, Text & Cases; The First Course

Miller, 14

Law

Test Bank

14th Edition

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Test Bank for Business Law, Text & Cases; The First Course, The downloadable file consists of 461 pages, and the total size of the file is 5.46 MB. Purchase now only for highly discounted price.

Author(s): Miller

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Name: Class: Date: ch 1 Powered by Cognero Page 1 Indicate whether the statement is true or false. 1. In most states, the courts no longer grant “equitable” remedies. a. True b. False 2. Remedies in equity include injunctions. a. True b. False 3. The U.S. Constitution reserves to the federal government all powers not granted to the states. a. True b. False 4. The stability and predictability of the law are essential to business activities. a. True b. False 5. Whether a law is constitutional depends on its source. a. True b. False 6. A jury’s good sense and careful consideration of consequences is known as jurisprudence. a. True b. False 7. Statutory law does not include county ordinances. a. True b. False 8. Criminal acts are prohibited only by federal government statutes. a. True b. False 9. Most state trial court decisions are not published. a. True b. False 10. Stare decisis is a doctrine obligating judges to help persons who have failed to protect their own rights. a. True b. False 11. Criminal law focuses on rights and duties that exist between persons. a. True b. False Name: Class: Date: ch 1 Powered by Cognero Page 2 12. In a common law system, judges generally follow stare decisis unless there is a compelling reason to overturn a precedent. a. True b. False 13. Administrative law consists of the rules, orders, and decisions of administrative agencies. a. True b. False 14. A key to avoiding business disputes is to go ahead without thinking ahead. a. True b. False 15. The courts, in interpreting statutory law, may rely on the common law as a guide to what the legislators intended. a. True b. False 16. Business decision makers are expected to make decisions that are ethically sound. a. True b. False 17. Law consists of enforceable rules governing relationships among individuals and between individuals and their society. a. True b. False 18. Remedies in equity include specific performance. a. True b. False 19. Administrative law includes only state regulations. a. True b. False 20. Statutory law includes state statutes. a. True b. False 21. Administrative law is a source of American law that consists of statutes. a. True b. False 22. The party against whom a lawsuit is brought is the plaintiff or petitioner . a. True b. False Name: Class: Date: ch 1 Powered by Cognero Page 3 23. Courts never depart from precedents. a. True b. False 24. “UCC 2–207(1)” is a citation to Uniform Commercial Code Section 2–207, subsection 1. a. True b. False 25. Damages are a remedy at law. a. True b. False 26. A citation identifies the publication in which a legal authority can be found . a. True b. False 27. The term common law refers to law that is common throughout the world. a. True b. False 28. The common law is a term for the laws that are familiar to most of us. a. True b. False 29. Procedural law consists of all laws that outline the methods of enforcing rights. a. True b. False 30. Laws and government regulations affect almost all business activities. a. True b. False 31. Statutes are laws enacted by Congress and the state legislatures and comprise one of the sources of American law. a. True b. False 32. When all the judges (or justices) agree on a decision, a majority opinion is written for the entire court. a. True b. False 33. The courts, in interpreting statutory law, may rely on sources outside of the statute (such as common law precedents) as a guide to what the legislators intended. a. True b. False 34. Many different laws may affect a single business transaction. Name: Class: Date: ch 1 Powered by Cognero Page 4 a. True b. False 35. Constitutional law includes only the U.S. Constitution. a. True b. False Indicate the answer choice that best completes the statement or answers the question. 36. Dave and Ellen enter into a contract via e-mail. When a dispute arises over the performance of the deal, Dave files a suit against Ellen. The emerging body of law that governs transactions such as this conducted via the Internet is referred to by the term a. cyberlaw. b. civil law. c. equitable maxims. d. IRAC. 37. In a suit against Ian, Jenna obtains an injunction. This is a. an order to do or to refrain from doing a particular act. b. an order to perform what was promised. c. a payment of money or property as compensation. d. the cancellation of a contract. 38. Zoom In, Inc., is engaged in the business of coding, with an emphasis on Internet marketing, business apps, and intra- corporate networks. In all of Zoom In’s business activities, it is subject to United States laws and regulations. The basis for all law in the U.S. is a. the U.S. Constitution. b. each of the states’ individual constitutions. c. legislation enacted by Congress. d. the executive orders of the president. 39. Jack enters into a contract with Jill’s Farm to provide water for Jill’s irrigation needs. Jack fails to deliver. Jill initiates a suit against Jack, asking the court to order Jack to perform. Jill is a. the plaintiff. b. the defendant. c. the binding authority. d. the persuasive authority. 40. James and Kay enter into a contract for the sale of a bicycle, but Kay later refuses to deliver the goods. James asks a court to order Kay to perform as promised. Ordering a party to perform what was promised is a. an equitable remedy. b. an unenforceable demand. c. a remedy at law. d. beyond the court’s authority. 41. The Federal Trade Commission (FTC) is a government agency that issues rules, orders, and decisions. The Georgia Name: Class: Date: ch 1 Powered by Cognero Page 5 state legislature enacts statutes. The Harrison County Board and the Island City Council enact ordinances. Administrative law includes a. all of the choices. b. the rules, orders, and decisions of the FTC. c. statutes enacted by the Georgia state legislature. d. ordinances enacted by county boards and city councils. 42. Deb and Earl are involved in a lawsuit. This is a. an action. b. a breach. c. an injunction. d. a remedy. 43. Café Espresso is a coffee shop subject to the laws of Illinois. In Illinois, the highest -ranking (superior) law is a. a case decided by the Illinois Supreme Court. b. a rule created by an Illinois state administrative agency. c. a provision in the Illinois constitution. d. a statute enacted by the Illinois legislature. 44. Judge Bell decides that the precedent for the case she is hearing is no longer correct due to technological changes. She overturns the precedent when she decides the case. It is likely that her case will a. go unnoticed by the public. b. be thrown out of court. c. receive a great deal of publicity. d. be ignored by the media. 45. In an action against Gina, Harry obtains a remedy. This is a. an administrative agency’s enforcement of its rule. b. a principle of the law derived from earlier court cases. c. a statute enacted by a state legislature or Congress. d. the legal means to recover a right or to redress a wrong. 46. In a suit against Olive, Pimento obtains damages. In the U.S. legal system, this remedy at law is a. unique. b. usual. c. unlikely. d. unusual. 47. Rachel is a state court judge. Salina appears in a case in Rachel’s court, claiming that Tomas breached a contract. Possible remedies include a. compensation to Rachel for a favorable ruling. b. Tomas’s imprisonment. c. a criminal fine levied by Rachel on either party. d. an award of damages to Salina. Name: Class: Date: ch 1 Powered by Cognero Page 6 48. In the early King’s Court of England, a court of law could grant as a remedy only a. damages. b. an order to perform a contract as promised. c. a judicial proceeding for the resolution of a dispute. d. an injunction. 49. The Appellate Division of the New York Supreme Court issues an opinion that can be found at 137 A.D.3d 409, 26 N.Y.S.3d 66. “137” is a. the number of the volume in the official reports of the court’s decisions. b. the number of the volume in Thomson Reuter’s unofficial publication of the court’s decisions. c. a page number in the referenced volume. d. the number of the case in a sequence decided by the court. 50. Kevin is a judge hearing the case of Local Dispatch Co. v. National Transport Corp . Applying the relevant rule of law to the facts of the case requires Kevin to find previously decided cases that, in relation to the case under consideration, are a. as different as possible. b. as similar as possible. c. at odds. d. exactly identical. 51. In a suit against Ethan, Francisco obtains an award of damages. This is a. an order to do or to refrain from doing a particular act. b. an order to perform what was promised. c. a payment of money or property as compensation. d. the cancellation of a contract. 52. A provision in the California state constitution conflicts with a provision in the U.S. Constitution. If challenged a. neither provision will be enforced. b. the provisions will be balanced to reach a compromise. c. the state provision, not the U.S. Constitution, will be enforced. d. the U.S. Constitution, not the state provision, will be enforced. 53. The North Carolina state legislature enacts a law that violates the U.S. Constitution. This law can be enforced by a. no one. b. the federal government only. c. the state of North Carolina only. d. the United States Supreme Court only. 54. Creamy Dairy produces award -winning ice cream sold to wholesale distributors, retail sellers, and individual consumers in all fifty states. Its business is regulated by the UCC, which provides a set of rules governing a. commercial transactions. b. dairy products and their production. c. merit standards for nutrition awards. d. the formation and initiation of a business. Name: Class: Date: ch 1 Powered by Cognero Page 7 55. As a judge, Baxter applies common law rules. These rules develop from a. decisions of the courts in legal disputes. b. regulations issued by administrative agencies. c. statutes enacted by Congress and the state legislatures. d. uniform laws drafted by legal scholars. 56. Charles is a federal judge whose judicial decisions are part of case law, which does not include interpretations of a. regulations created by administrative agencies. b. constitutional provisions. c. statutes enacted by legislatures. d. parties’ subjective motives for engaging in litigation. 57. The legislature of the state of Wyoming enacts a new statute that sets standards for the liability of businesses selling defective products. This statute applies in a. Wyoming only. b. only Wyoming and its bordering states. c. all states. d. all states but only to matters not covered by other states’ laws. 58. The Bay City Planning Department, the Coastal County Zoning Commission, the California Environmental Quality Agency, and the U.S. Bureau of Land Management issue regulations. These rules constitute a. administrative law. b. case law. c. constitutional law. d. statutory law. 59. Erin believes that a higher, or universal, law exists that applies to all human beings. Erin asserts that each written law should reflect the principles inherent in this higher law. Erin a. is a legal positivist. b. adheres to the historical school of legal thought. c. is a legal realist. d. adheres to the natural law tradition. 60. The branch of law dealing with the enforcement of private rights and duties between parties is a. administrative law. b. civil law. c. constitutional law. d. federal law. 61. Martin Luther King, Jr. played a singular role in the most significant social movement in the history of the United States—the Civil Rights Movement. King has been chronicled in books and movies, and is featured on mementoes, some of which are offered for sale by PriceMart Corp. Under the principles discussed in “A Sample Court Case,” Rosa and Raymond Parks Institute for Self-Development v. Target Corp., PriceMart’s sale of these items most likely a. constitutes misappropriation. b. implies something false about King’s legacy. Name: Class: Date: ch 1 Powered by Cognero Page 8 c. is a qualified privilege to communicate on matters of public interest. d. violates the common -law right of publicity. 62. In the case of Retail Sales Corp. v. Trucking Delivery Co., the court may rule contrary to a precedent if the court decides that the precedent a. is incorrect or inapplicable. b. is not in line with the judge’s personal values. c. would lead to unintended consequences. d. would not bring about the result the judge prefers. 63. Larry enters into a contract with Motivational Education Services to host a panel discussion at a sales conference. When the conference is postponed indefinitely, Larry asks a court to cancel the contract and return the parties to the positions that they held before its formation. This request involves a. specific performance. b. an injunction. c. rescission. d. an action that the court cannot order. 64. Congress enacts a statute, the Federal Deposit Insurance Corporation (an administrative agency) issues rules, the Southeast Financial Institutions Association (a private organization) issues instructions, South Valley Bank posts a memo with orders for its employees, and Tina tells her co-worker about a recent news story. Sources of law include a. the instructions issued by private associations. b. the orders posted by employers. c. the rules issued by federal administrative agencies. d. the stories released by news agencies. 65. In Benny v. City Car Dealership , a state supreme court held that a minor could cancel a con-tract for the sale of a car. Now a trial court in the same state is deciding Dora v. Even Steven Auto Deals, Inc., a case with similar facts and issues. Under the doctrine of stare decisis , the trial court is likely to a. allow the minor to cancel the contract. b. disregard the Benny case. c. order the minor to cancel the contract. d. require the minor to fulfill the contract. 66. The Regional Counties Commission approves a new property tax measure, and the professors and students at State Law School publish the results of their most recent legal research. Sources of law include a. the new property tax measure. b. the legal scholars’ research. c. the new property tax measure and the legal scholars’ research. d. neither the new property tax measure nor the legal scholars’ research. 67. Criminal law is concerned with a. the prosecution of private individuals by other private individuals. b. the prosecution of public officials by private individuals. c. the relief available when a person’s rights are violated. Name: Class: Date: ch 1 Powered by Cognero Page 9 d. wrongs committed against the public as a whole. 68. There are no precedents on which the court deciding the case Standard Resource Co. v. Topline Inventory, Inc., can base its decision. The court can consider, among other things, a. the opinions of the friends and relatives of the judge. b. the results of a poll of those in the courtroom. c. public policy or social values. d. none of the choices. 69. Distinguishing between legal and equitable remedies is a. not important because legal remedies cannot be granted today. b. not important because equitable remedies cannot be granted today. c. important so that statistical data on the remedies can be compiled. d. important because the type of remedy available will depend on the type of harm suffered. 70. Statistics, Inc., is a corporation engaged in the business of compiling, analyzing, and marketing data. To accomplish its purposes, Statistics obtains financing, and hires and fires employees. Laws and government regulations affect such business activities as a. hiring and firing decisions. b. the manufacturing and marketing of products. c. business financing. d. all of the choices. 71. In a lawsuit between Cloud Computing Corporation and Digital Enterprises, Inc., the court applies the doctrine of stare decisis . What is this doctrine? What does this doctrine have to do with the American legal system? 72. National Rights Council, a nonp rofit organization, files a suit against the U.S. Department of Justice (DOJ), claiming that a certain federal statute the DOJ is empowered to enforce conflicts with the U.S. Constitution and with a state constitution. In each situation, which source of law has priority? Name: Class: Date: ch 1 Powered by Cognero Page 10 Answer Key 1. False 2. True 3. False 4. True 5. False 6. False 7. False 8. False 9. True 10. False 11. False 12. True 13. True 14. False 15. True 16. True 17. True 18. True 19. False 20. True 21. False 22. False 23. False 24. True 25. True Name: Class: Date: ch 1 Powered by Cognero Page 11 26. True 27. False 28. False 29. True 30. True 31. True 32. False 33. True 34. True 35. False 36. a 37. a 38. a 39. a 40. a 41. b 42. a 43. c 44. c 45. d 46. b 47. d 48. a 49. a 50. b 51. c Name: Class: Date: ch 1 Powered by Cognero Page 12 52. d 53. a 54. a 55. a 56. d 57. a 58. a 59. d 60. b 61. c 62. a 63. c 64. c 65. a 66. a 67. d 68. c 69. d 70. d 71. In a common law legal system, past judicial decisions are binding in current disputes with similar facts and issues. This feature of the common law, which is the basis of the American legal system, is unique because, unlike the law in other legal systems, it is judge -made law. Within the common law system, when possible, judges attempt to be consistent and to base their decisions on the principles suggested by earlier cases. The body of principles and doctrines that form the common law emerged over time as judges applied the principles announced in earlier cases to subsequent legal controversies. The practice of deciding cases with reference to former decisions, or precedents —the cornerstone of the American legal system—is called the doctrine of stare decisis . Under this doctrine, judges are oblig ated to follow the precedents established within their jurisdictions. This helps courts to be more efficient, and makes the law more stable and predictable. 72. The U.S. Constitution is the supreme law of the land. A law in violation of the U.S. Constitution, no matter what its Name: Class: Date: ch 1 Powered by Cognero Page 13 source, will be declared unconstitutional and will not be enforced. Thus, the federal statute does not have priority over the Constitution. The federal statute would have priority over the state constitution, however, becau se under the U.S. Constitution, when there is a conflict between a federal law and a state law, the state law is rendered invalid. Name: Class: Date: ch 2 Powered by Cognero Page 1 Indicate whether the statement is true or false. 1. No court offers mediation as an option before a case goes to trial. a. True b. False 2. A business firm may have to comply with the laws of any jurisdiction in which it actively targets customers. a. True b. False 3. The minimum -contacts requirement is usually met if a corporation advertises or sells its products within a state. a. True b. False 4. Generally, a foreign court’s decision can be enforced in the United States. a. True b. False 5. The role of the courts is to interpret and apply the laws. a. True b. False 6. The amount in controversy in a diversity of citizenship case must be more than $1 million before a federal court can take jurisdiction. a. True b. False 7. State courts are superior to federal courts. a. True b. False 8. Minimum contacts with a jurisdiction are never enough to support jurisdiction over a nonresident defendant. a. True b. False 9. In mediation, the mediator proposes a solution and makes a decision resolving the dispute. a. True b. False 10. A state case typically originates in a federal court. a. True b. False 11. Some cases decided by federal courts of appeals are not subject to review by the United States Supreme Court. a. True b. False Name: Class: Date: ch 2 Powered by Cognero Page 2 12. A justiciable controversy is a case in which the court’s decision—the “justice” that will be served—will be controversial. a. True b. False 13. Arbitration that is mandated by a court is often binding on the parties. a. True b. False 14. Trials courts conduct trials. a. True b. False 15. Negotiation is the most complex form of alternative dispute resolution. a. True b. False 16. In many cases, a court can exercise jurisdiction over an out-of-state defendant who has done business in the state only over the Internet. a. True b. False 17. A court can exercise jurisdiction over property that is located within its boundaries. a. True b. False 18. Concurrent jurisdiction exists when only state courts have the power to hear a particular case. a. True b. False 19. In most states, in suits brought in small claims courts, lawyers are not required. a. True b. False 20. Most online dispute resolution services apply international principles promulgated by the United Nations to resolve disputes. a. True b. False 21. Cases arising between citizens of different states involve diversity of citizenship. a. True b. False 22. The United States Supreme Court does not have original jurisdiction in any case. a. True