Deck 1: The Legal and Constitutional Environment of Business

Question 1

Common law is a term for the laws that are familiar to most of us.

Answer 1

False

Question 2

The American Law Institute was the only organization involved in developing the Uniform Commercial Code.

Answer 2

False

Question 3

Criminal acts are prohibited only by federal government statutes.

Answer 3

False

Question 4

The federal government and the states have the same constitution.

Question 5

Businesspersons are expected to make decisions that are ethically sound.

Question 6

Administrative law is a source of American law that is comprised of statutes.

Question 7

Article I,Section 8,of the U.S.Constitution permits Congress to regulate interstate commerce.

Question 8

Criminal law focuses on duties that exist between persons.

Question 9

Many different laws may apply to a single business transaction.

Question 10

Preemption occurs when Congress chooses to act exclusively in a concurrent area and a valid federal statue or regulation takes precedence over a conflicting state or local law.

Question 11

Administrative law includes only state regulations.

Question 12

Equity is a branch of law,founded in justice and fair dealing,that seeks to supply a remedy when no adequate remedy at law is available.

Question 13

Common law is the same as statutory law.

Question 14

Money or property,including land,areremedies at law.

Question 15

Statutes are laws enacted by Congress and the state legislatures and comprise one of the sources of American law.

Question 16

Administrative law consists of the rules,orders,and decisions of administrative agencies.

Question 17

Statutory law includes state statutes and ordinances passed by cities and counties.

Question 18

Laws and government regulations affect almost all business activities.

Question 19

Stare decisis is a doctrine obligating judges to follow the precedents established within their jurisdictions.

Question 20

Government authorities cannot enforce na-tional law.

Question 21

The Second Amendment to the U.S.Constitution reserves all powers not delegated to the national government to the states.

Question 22

The Fifth Amendment prohibits unreasonable searches and seizures of persons or property.

Question 23

A law that limits the liberty of all persons may violate substantive due process.

Question 24

The Constitution does not explicitly mention a right to privacy.

Question 25

Data Analytics,Inc.,is a corporation engaged in the business of compiling,analyzing,and marketing data.To accomplish its purposes,Data Analytics 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.

Question 26

The First Amendment requires a complete separation of church and state.

Question 27

The Uniform Commercial Code has been adopted,at least in part,in

A)all states.
B)forty-five states.
C)thirty-five states.
D)no state.

Question 28

The Bay City Planning Department,the Coastal County Zoning Commission,the Delaware Environmental Quality Agency,and the U.S.Bureau of Land Management issue regulations.These rules constitute

A)administrative law.
B)case law.
C)staredecisis.
D)statutory law.

Question 29

The Children's Internet Protection Act requires public schools and libraries to use filtering software to block children's access to adult contact on Web sites.

Question 30

Substantive due process limits what the government may do in its legislative capacity.

Question 31

A restriction on commercial speech is valid as long as it forbids only the expression of views on controversial issues.

Question 32

The Eighth Amendment prohibits excessive bail and fines,as well as cruel and unusual punishment.

Question 33

A law that limits only some persons' exercise of a fundamental right is valid under any circumstances.

Question 34

The First Amendment protects corporate political speech.

Question 35

A law that has any impact on religion is unconstitutional.

Question 36

A law that restricts people of a certain national origin from doing something will be carefully examined to make sure it promotes a compelling government interest before it is allowed to stand.

Question 37

Congress enacts a statute,the Federal Deposit Insurance Corporation (an administrative agency) issues rules,the Southeast Financial Institutions Association (a private organizations) 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.

Question 38

Symbolic speech is defined as nonverbal expressions of belief and is protected by the First Amendment.

Question 39

Individuals have a right to obtain access to information about them collected in government files.

Question 40

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.

Question 41

Eliza is a state court judge.Flora appears in a case in Eliza's court,claim-ing that Glover breached a contract.Which of the following actions may Eliza take?

A)Award damages or issue a decree of specific performance
B)Imprison Glover,but not Flora
C)Imprison Flora,but not Glover
D)Order the parties to pay Eliza to render a favorable ruling

Question 42

Martin,a U.S.citizen,feels that a recently enacted federal law is unfair.He assembles a group of friends and they write a petition to the government.Martin and friends then stand quietly in front of the White House with signs declaring their belief that the law is unfair.Under the First Amendment,Martin has a right to

A)petition the government,but not to assemble a group peaceably.
B)assemble peaceably,but not to petition the government.
C)both petition the government and assemble peaceably.
D)neither petition the government nor assemble peaceably.

Question 43

Leona enters into a contract with Munchie Bakery to cater a sales conference.When the conference is postponed indefinitely,Leona 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.

Question 44

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.

Question 45

South Dakota,like other states,may regulate private activities to protect or promote the public order,health,safety,and general welfare under

A)the state's police powers.
B)the dormant commerce clause.
C)the due process clause.
D)the free exercise clause.

Question 46

Judge Julia 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 most 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.

Question 47

In an action against the sate of Idaho,Jaime obtains a remedy.This is

A)the relief given to an innocent party to enforce a right or to prevent or compensate for the violation of a right.
B)medication paid for by the government.
C)a right guaranteed by the Bill of Rights.
D)a situation or state of facts that gives a person a right to initiate a judicial proceeding.

Question 48

In a suit against Knut,Largo 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.

Question 49

Mikkayla is a well-known professional athlete.Mikkayla Co.owns trademarks,including "mikkayla," that it uses to sell merchandise.Norm owns photos of Mikkayla that he markets through his Web site,mikkalapics.com.Under the principles discussed in "A Sample Court Case," Experience Hendrix,L.L.C.v.Hendrixlicensing.com Ltd.,Norm's domain name most likely

A)constitutes nominative fair use of the "mikkayla" mark.
B)infringes the "mikkayla" mark.
C)is a legitimate description of Mikkayla Co.'s products.
D)is a legitimate reference to Mikkayla Co.'s products.

Question 50

A federal law regarding the labeling of pesticides directly conflicts with a state law.The state law will be rendered invalid due to

A)the supremacy clause.
B)the commerce clause.
C)the federal spending power.
D)the federal spending power.

Question 51

The best definition of a precedent is

A)a law developed from custom.
B)a judicial proceeding for the determination of a dispute between parties in which rights are enforced or protected.
C)a proceeding by one person against another in court.
D)a court decision that furnishes an example or authority for deciding subsequent cases involving identical or similar facts.

Question 52

Tami's Tasty Tacos,a fast food outfit,files a suit against the state of Texas,claiming that a Texas state law violates the commerce clause.The court will agree if the statute imposes a substantial burden on

A)a local government.
B)interstate commerce.
C)noneconomic activity.
D)the state.

Question 53

Chelsea is a state court judge.Like judges in most state courts,in a particular case,she may grant a remedy

A)at law only.
B)in equity or at law,but not both.
C)in equity and at law.
D)in equity only.

Question 54

China violates an international law.Other countries may take coercive actions,which include

A)violating the same law in the same way with impunity.
B)confiscatingChinese businesses.
C)boycottingChinese goods.
D)taxingChinese citizens.

Question 55

The commerce clause includes an express grant of exclusive authority to regulate commerce that substantially affects trade and commerce among states.This is referred to as

A)thedormant aspect of the commerce clause.
B)thepositive aspect of the commerce clause.
C)thenegative aspect of the commerce clause.
D)theexclusive aspect of the commerce clause.

Question 56

Jane enters into a contract with Jill to provide 100 roses for a dinner party.Jane fails to deliver the roses.Jill initiates a suit against Jane,asking the court to order Jane to deliver the roses.Jill is

A)the plaintiff.
B)the defendant.
C)the binding authority.
D)the persuasive authority.

Question 57

Civil law

A)defines,describes,regulates,and creates legal etiquette.
B)spells out the rights and duties that exist between persons and between persons and their governments.
C)establishes the methods of enforcing the rights established by criminal law.
D)has to do with the wrongs committed against society for which society demands redress.

Question 58

Savers Mart,Inc.,distributes its merchandise to retail outlets on an inter-state basis.Under the commerce clause,Congress has the power to regulate

A)any commercial activity in the United States.
B)only activities that are in intrastate commerce.
C)only activities that are in local commerce.
D)only activities that are not in commerce.

Question 59

Maggie and Nate enter into a contract for the sale of a car,but Nate later refuses to deliver the car.Maggie asks a court to order Nate to perform as promised.Ordering a party to perform what was promised is

A)specific performance.
B)damages.
C)rescission.
D)beyond the court's authority.

Question 60

Starlight Café brings a suit,seeking a remedy at law.A remedy at law is

A)the payment of money or property as compensation for damages.
B)a decree of specific performance.
C)a judicial proceeding for the resolution of a dispute.
D)an injunction.

Question 61

Americans with a Better Cause (ABC),a nonprofit organization,files a suit against the U.S.Department of Justice (DOJ),claiming that a cer-tain 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?

Question 62

Reusable Energy Corporation regularly expresses opinions on political issues.Under the First Amendment,corporate political speech is

A)discouraged.
B)forbidden.
C)protected.
D)required.

Question 63

George burns an American flag in his backyard.He films his actions and posts the video on YouTube.com.George's actions are

A)expressly prohibited by the U.S.Constitution.
B)protected by the First Amendment of the U.S.Constitution.
C)considered to be a form of treason.
D)illegal in some states.

Question 64

Mary creates a t-shirt design that expresses support for a presidential candidate and distributes t-shirts with the design to all of her friends.This is an example of

A)unprotected speech.
B)controlled speech.
C)symbolic speech.
D)illegal speech.

Question 65

In a dispute between Cosmic Games Corporation and Mythic Engineering Associates,Inc.,the court applies the doctrine of stare decisis.What is this doctrine? What does this doctrine have to do with the American le-gal system?

Question 66

A Massachusetts state statute imposes a prison term,without a trial,on all street performers who operate in certain areas.A court would likely review this statute under the principles of

A)the commerce clause.
B)the equal protection clause.
C)the due process clause.
D)the First Amendment.

Question 67

Oklahoma enacts a law requiring all businesses in the state to donate 10 per-cent of their profits to Protestant churches that provide certain services to persons whose income is below the poverty level.PriceLess Stores files a suit to block the law's enforcement.The court would likely hold that this law violates

A)no clause in the U.S.Constitution.
B)the establishment clause.
C)thefree exercise clause.
D)thesupremacy clause.

Question 68

Machismo Motor Sales Corporation regularly advertises its off-the-road vehicles,all-terrain vehicles,and other products.Under the First Amendment,these ads and other commercial speech are given

A)less extensive protection than noncommercial speech.
B)more extensive protection than symbolic speech.
C)no protection.
D)the same protection as defamatory speech.

Question 69

In 2015,Congress enacts the Act to Restrict Commercial Speech (ARCS).The ARCS will be considered valid if it directly advances a substantial government interest

A)but goes no further than necessary to achieve its purpose.
B)without regard to how "far" it goes.
C)and the parties affected by it can elect how "far" to go in applying it.
D)and goes further than necessary to ensure full coverage.

Question 70

ViolentVideoGames,Inc.markets a variety of shooting,fighting and hunting video games.A state statue is enacted that requires all video game manufacturers to label any games with an option to kill something as "excessively violent." A court would likely hold this regulation to be

A)an unconstitutional restriction of speech.
B)constitutional under the First Amendment.
C)justified by the need to protect individual rights.
D)necessary to protect national interests.

Question 71

To reduce traffic,Harbor Town enacts an ordinance that allows only a few street vendors to op-er-ate in certain areas.A court would likely review this ordinance under the principles of

A)the commerce clause.
B)the equal protection clause.
C)the due process clause.
D)the First Amendment.

Question 72

California enacts a statute to ban advertising in "bad taste." This stat-ute would likely be held by a court to be

A)an unconstitutional restriction of speech.
B)constitutional under the First Amendment.
C)justified by the need to protect individual rights.
D)necessary to protect national interests.