Deck 1: Legal Foundations and Thinking Strategically

Question 1

Much of the origins of the law dealt with issues related to property ownership.

Answer 1

True

Question 2

A presidential veto is only overridden by a two-thirds majority vote of the Senate.

Answer 2

False

Question 3

Attorneys representing a business only consult current laws to determine the best course of action or strategy.

Answer 3

False

Question 4

The United States Constitution is consistently amended to reflect the current societal needs.

Question 5

According to the doctrine of stare decisis cases with similar facts and issues should have the same outcome.

Question 6

Employing stare decisis and precedent allows a business to predict how the court will treat their situation and plan strategically.

Question 7

The courts always apply the doctrine of stare decisis.

Question 8

Irina promised to mow Axel's lawn. In return, Axel paid her $500.00. When Irina arrived, she became mad at Axel and only mowed one strip of grass and then mowed over his foot and through his prized flower garden and then left. Which statement below is correct:

A) Axel can only sue Irina for one category of law, such as breach of contract because laws are mutually exclusive
B) Technically Irina did mow part of Axel's lawn and partial completion of a contract bars bringing a lawsuit
C) Axel could sue for multiple causes of actions because one particular act of transaction may be classified in more than one legal category
D) Axel would be barred from recovery because he invited Irina to his house

Question 9

__________ provide(s) mechanisms for resolving disputes from duties and rights and allows parties to enforce them in a court of law.

A) Ethics
B) Societal norms
C) Laws
D) The will of the majority

Question 10

George, the supervisor at Shylo Company, punches an employee, Fred, when he finds him asleep next to his work station. Fred sustains a broken jaw. Which statement is true.

A) George could not be sued as he was an agent of his employer, Shylo Company
B) George could be prosecuted criminally and held civilly wrong to compensate Fred for the damages he sustained from being hit
C) Fred would have to choose whether to pursue this cause of action either in the criminal system or civil system
D) Fred would need to base any lawsuits brought on a violation of an ordinance

Question 11

Sherry attends a training session at her job as a contract administrator. The presenter continually refers to the term "force majeur" which is unclear to Sherry. What is this an example of?

A) Legalese
B) Primary authority
C) Secondary authority
D) Ethical constructs

Question 12

Legal vocabulary used in the United States is a combination of

A) Spanish, Latin and Portuguese
B) Russian, Swedish and French
C) German, English and French
D) Latin, English and French

Question 13

Origins of the law derived from chieftans and was intended to

A) Protect the dominion of the chieftans
B) Protect the individual's rights
C) Promote fair dealing and good faith in business transactions
D) Promote uniformity in the law throughout the land

Question 14

Today, many antidiscrimination statutes have been passed, especially in the area of education and employment. The goals of these statutes are

A) To establish basic standards of employment qualifications and educational standards
B) To promote the most cost-effective systems
C) To ensure that every person is treated exactly the same
D) To ensure consistency and fairness

Question 15

In commerce today, the intent of laws are all of the following except

A) To promote good faith
B) To promote maximum profits
C) To encourage fair dealing
D) To create reliability

Question 16

Bekah owns Sweet Creations, a bakery which is famous for making the most delicious organic baked goods. Bekah learns that a bill, being publicly debated in Congress, is likely to become law which will require any bakeries stating that their products are organic to purchase all of baked goods through one central supplier to ensure accuracy and quality of baked goods deemed organic. Finding out this information, Bekah contacts the central supplier to enter into a long term contract for the lowest possible price of the supplies as she predicts the prices will soar once the general public learns of this new law. Bekah

A) Is engaged in unethical insider trading as she is using her knowledge to her own advantage
B) Is morally required to ensure that others in her industry know of this bill so that they too can make similar contracts
C) Is legally aware which allows her to be proactive in business planning
D) Will not be able to enforce the terms of the contract due to a change in circumstances

Question 17

Connor is an aerospace engineer and project manager for Space Corporation. His team is actively researching, developing and building a satellite to be launched in soon. Connor learns that a new statute is passed that requires all satellites must be built using American made supplies. He immediately orders his team to scrap the current satellite and start building a new satellite in compliance with the new statute. However, what he did not know is that a provision of the new law states that this applies only to new projects started six months from today. Connor should have

A) Consulted an attorney who is skilled in this area of law and worked cooperatively for better strategic planning.
B) Made no changes in his actions as his decisions were reasonable.
C) Done a cost-benefit analysis to determine if it was worth paying an attorney to advise about the law.
D) Sought the approval of all the employees of Space Corporation to determine the will of the company.

Question 18

The European Union fining Google $2.7 billion for manipulating search results illustrates a trend in the law that

A) Globalization of commerce is inherently more expensive.
B) Sovereignty of United States business is being challenged worldwide.
C) Penalties are becoming stiffer for non-compliance of laws.
D) Big business is unethical.

Question 19

Recent data breaches of some major corporations have increased

A) The need for legal advice in technology issues.
B) The exposure of officers and director liabilities.
C) The need for businesses to keep sensitive information only in hard copy form rather than electronically stored.
D) The liability of shareholder for the action or inaction of the corporation.

Question 20

An attorney in the business context is called

A) Barrister
B) Esquire
C) Counsel
D) Jurisdoctor

Question 21

Sunshine Recording Artists, a major business in the music industry, routinely seeks to copyright the songs of each artist they sign. Rockin' Robert, a new artist with amazing musical talent has just signed with them and he has already created 40 amazing songs in the first week alone and he is not expected to slow down. What advice would you give Sunshine Recording Artists about their legal needs due to their extraordinary increase in intellectual property rights due to Rockin' Robert?

A) They must hire a litigator who possesses strong trial skills in the courtroom.
B) They must get a computer program where they can file their own copyright paperwork since it is coming in such large quantities.
C) They should terminate their contract with Rockin' Robert because the cost of the legal representation could outweigh the benefits.
D) They should employ in-house counsel because of the extraordinary regulatory burdens.

Question 22

The state of Virginia enacts a statute that states no private citizen may own or possess a gun. This statute will

A) Be declared unconstitutional because a state law cannot violate the Second Amendment of the U.S. Constitution.
B) Be held constitutional as long as the state of Virginia has a substantial governmental interest.
C) Be limited in jurisdiction and apply only in the state of Virginia.
D) Be declared unconstitutional only if it violates the constitution of Virginia.

Question 23

In 2008, the state of North Carolina created a law that made it illegal for a registered sex offender to access social media websites that allow minors to access it, as well. That law demonstrates:

A) Secondary authority
B) Ordinance
C) Primary authority
D) Common law

Question 24

Packingham, a registered sex offender in North Carolina, was convicted of a felony for violating a North Carolina law which made it a felony for a registered sex offender to access social media sites that allowed minor children to as well. Packingham appealed his conviction to the U.S. Supreme Court which overturned his conviction stating that the law was unconstitutional because it impermissibly restricted lawful speech and violated the First Amendment. The opinion of the U.S. Supreme Court is

A) Secondary Authority
B) Civil law
C) Precedent
D) Regulations

Question 25

The U.S. Supreme Court bans registered sex offenders from accessing social media sites that minors may also access. This was declared unconstitutional because it impermissibly limits lawful speech and establishes the precedent that will be applied to future cases with similar facts and issues under the doctrine of:

A) Due process
B) Equity
C) Res Ipsa Loquitor
D) Stare decisis

Question 26

Rachel recently earned her driver's license. She learned all the rules of the road within her state, Illinois, and aced her Illinois driver's test. While traveling through Missouri, she follows all of the traffic rules that she learned in Illinois. If a Missouri traffic rule conflicts with an Illinois law, which one would apply to an Illinois licensed driver who is driving in Missouri?

A) Illinois laws will apply since Rachel is licensed and domiciled in Illinois.
B) Missouri laws will apply to Rachel when she is driving in Missouri.
C) The state which has the strictest laws will apply no matter in which state Rachel drives.
D) Since Rachel is an Illinois resident and crossed state lines into Missouri, federal law will apply.

Question 27

__________ has the power to regulate interstate commerce.

A) The U.S. Supreme Court
B) Congress
C) The President
D) The Department of Justice

Question 28

Statutory law is

A) Created by the legislative branch and approved by the executive branch.
B) Created by the legislative branch and affirmed by the judicial branch.
C) Created by the executive branch and affirmed by the legislative branch.
D) Created by administrative agencies and affirmed by the legislative branch.

Question 29

Congress can override a presidential veto of a bill by:

A) A majority vote
B) Unanimous vote
C) 3/4 majority vote
D) 2/3 majority vote

Question 30

__________ is derived from the courts.

A) Civil law
B) Criminal law
C) Equity law
D) Statutory law

Question 31

Common law is used by

A) United States, United Kingdom, Canada and Australia
B) Japan, China, and Korea
C) Germany, France and Spain
D) Brazil, Costa Rica and Bolivia

Question 32

Shelby's Sea Shells Company, realizes that it is losing money daily and must file to the bankruptcy. Which level of government's law would apply?

A) State
B) Federal
C) Village
D) International

Question 33

Alexander entered into a contract with Eowynn to purchase a vintage 1962 Shelby Cobra for $5000.00. After both parties agreed to the price Eowynn learned that the actual market value of the car is around $760,000.00. She therefore decides to back out of the deal and offers to give Alexander his money back. Alexander does not want the money. He wants the car. For what remedy might Alexander sue Eowynn?

A) Criminal punishment
B) The equitable remedy of specific performance
C) The equitable remedy of an injunction
D) The monetary damages caused by the breach of contract.

Question 34

Each day that Tara goes to work she parks on the street in front of an expired meter. She is fully aware that she will get a $3.00 parking ticket each time that she does this. The closest parking lot charges $100.00 a month to park there. Therefore, Tara decides that it is cheaper to disregard the law because benefit outweighs the cost in that it is cheaper for her to pay the daily parking ticket than the monthly rate for the parking lot. This type of strategy is called:

A) Non-compliance
B) Avoidance
C) Prevention
D) Value creation

Question 35

Marty Company, located in Illinois, learns that the state of Illinois will be increasing taxes on all businesses. Before the tax goes into effect, Marty Company relocates to Missouri where the taxes are far lower on businesses. This type of business strategy is called:

A) Non-compliance
B) Avoidance
C) Prevention
D) Value creation

Question 36

Kevin is in-house counsel for a major corporation. The chief officer, Steve, wants to create a company policy whereby if an employee is pregnant, she will only work a maximum of 30 hours a week so as to not overwork the pregnant employee. Steve asks Kevin to research the law to determine if there would be any potential legal risks with the course of action. This type of business strategy is called

A) Non-compliance
B) Avoidance
C) Prevention
D) Value creation

Question 37

A business securing patents for all of their creations and inventions is an example of what type of business strategy?

A) Non-compliance
B) Avoidance
C) Prevention
D) Value Creation

Question 38

Andre, Michael and Reed go on a hunting trip to Texas, leaving their good buddy Evan behind to run the business they own together as partners. In a fit of jealousy and rage, Evan burns the business to the ground. Which statement below is correct?

A) Since Evan's actions were criminal, he can only be held criminally responsible and the other partners will have pay for the repair to the business
B) Since Evan's actions were criminal, he could be held criminally liable and since his actions caused monetary damages to the business, he could also be held civilly liable to his partners for the damages.
C) Evan will only be held civilly liable since no person was injured and it was only monetary damages.
D) Evan will not be liable criminally or civilly unless he violated a statute.

Question 39

Business Corporation Law is an example of what type of law?

A) Procedural law
B) Private law
C) Public law
D) Civil law

Question 40

Congress is drafting a federal statute to increase the speed limit on the interstate to 100 miles per hour. However, it has not been passed or been approved by the President. It is called a(n)

A) Bill
B) Ordinance
C) Secondary authority
D) Precedent

Question 41

Brooke and Travis are looking to build a small building where they can run their trendy coffee shop as a business. When they find the perfect spot, they are told that cannot put a business there because it is zoned residential. The zoning limit is an example of

A) Common law
B) An ordinance
C) Unethical conduct
D) Unconstitutional conduct

Question 42

Secondary sources of law, such as Restatements,

A) Are binding in all 50 states
B) Ensure that the law is clear to all that read it
C) Requires that the executive branch approves it
D) Have no independent authority or legally binding effect

Question 43

Janet enters into a contract with Laura to tutor her in Chemistry one day a week for a year. After the second session, Janet decides to stop tutoring Laura due to their conflciting schedules. Laura sues Janet for breach of contract. This is an example of:

A) Private laws
B) Public laws
C) Procedural laws
D) Equitable laws

Question 44

Regulation of financial markets through the Dodd-Frank Act show a current regulatory trend of

A) An increase in the monitoring of fiscal responsibility
B) An increase in the regulations of corporate ethics
C) An increase in the expense of litigation in corporations.
D) An increase in U.S. and foreign regulations.

Question 45

The "general counsel," may also

A) Supervise the Board of Directors in a large corporation
B) Supervise one or more attorneys, usually called "associate counsel"
C) Supervise and approve or disapprove all managerial decisions
D) Supervise the actions of the shareholders

Question 46

Which statement below is correct as it relates to business strategy?

A) Since legal fees and representation costs have sky-rocketed, large businesses should focus on hiring one attorney to address all their legal needs.
B) Those in managerial roles should learn more about the law so as to decrease their need for legal representation.
C) Since the law has become increasingly complex and specialized, and businesses routinely face many different legal issues, it is not unusual for a business to need to seek advice from more than one attorney.
D) All business decisions should be run by an attorney before the business moves forward with any plans.

Question 47

The governmental body charged with actually enforcing and carrying out the laws promulgated by Congress is:

A) Administrative agencies
B) The judicial branch
C) Local townships
D) the American Law Institute

Question 48

Japan, for example, does not rely extensively on precedent, but rather adheres to a strict interpretation of a legislatively established code or regulation. What type of system of law is that called?

A) Common law system
B) Civil law system
C) Statutory law system
D) Administrative law system

Question 49

Lisa owns a wedding planning business. Her signature wedding services are in demand all over the country and keep her very busy. She seeks legal advice from counsel when necessary. A new federal statute becomes effective in six months that allows a wedding planner to protect their signature wedding techniques as a trade secret and also creates penalties if a wedding planner infringes upon the protected trade secrets of another wedding planner. Chris, her trusted counsel, offers four strategies to plan for the new statute. First, Chris says the penalties are rather small compared to the profit she makes each time she plans a wedding. Therefore, she can just ignore the new law and all the hassle that comes with it. A second option Chris offers is that should could change her business classification from a wedding planner to an event planner because this new law only applies to wedding planners and not event planners. He believes this is a legal loophole. The third option Chris offers is to register some of her most popular services as trade secrets and create a brochure where she lists the types of signature wedding plans she has registered and not deviate from that list of offered services. This will ensure that she does not risk infringing upon a trade secret another wedding planner has protected. Finally, the fourth option Chris offers is that since the law is relatively new and virtually unknown to anyone in her industry, they should register for every possible type of wedding technique that she has ever used or can think to possibly use in the future. This will limit the options of all the other wedding planners and will therefore make her the wedding planner with the most services to offer. For each of the four options Chris offered, identify and briefly explain the type of business strategy employed.