Deck 1: Business and Its Legal Environment3

Question 1

A state law that conflicts with the U.S.Constitution will be deemed unconstitutional.

Answer 1

True

Question 2

Federal statutes apply to all states.

Answer 2

True

Question 3

Rules issued by administrative agencies now affect almost no aspect of a business's operations.

Answer 3

False

Question 4

Judges use precedent when deciding a case in a common law legal system.

Question 5

A state constitution is supreme within the state's borders so long as it does not conflict with the U.S.Constitution or a federal law.

Question 6

A decision on a given issue by a court is not binding on an inferior court.

Question 7

Courts can rely on the common law as a guide to interpreting legislation.

Question 8

Constitutional law includes only the U.S.Constitution.

Question 9

Uniform laws apply in all states, including those in which the laws have not been adopted.

Question 10

No state has adopted the Uniform Commercial Code in its entirety.

Question 11

Common law is a term for the law that is known to most of us.

Question 12

The U.S.Constitution is the supreme law of the United States.

Question 13

Administrative agencies are established to perform specific functions.

Question 14

Whether a law is constitutional depends on its source.

Question 15

The law establishes rights, duties, and privileges that are consistent with the values of society.

Question 16

Stare decisis is a doctrine obligating judges to help persons who have failed to protect their own rights.

Question 17

The basis for the U.S.legal system is the natural law school.

Question 18

Law includes enforceable rules governing relationships between individuals and their society.

Question 19

Courts do not depart from precedents.

Question 20

A federal law that conflicts with the U.S.Constitution will be deemed unconstitutional.

Question 21

Lewis is a state court judge.Like other judges, Lewis often refers to secondary sources of law for guidance.These sources include

A)official comments to statutes.
B)other states' statutes.
C)state constitutions.
D)the U.S.Constitution.

Question 22

In Nebraska, the highest-ranking (superior)law is

A)a case decided by the Nebraska Supreme Court.
B)a provision in the Nebraska constitution.
C)a rule created by a Nebraska state administrative agency.
D)a statute enacted by the Nebraska legislature.

Question 23

Equitable remedies include injunctions.

Question 24

A plaintiff is a person against whom a lawsuit is brought.

Question 25

How judges apply the law to specific disputes may depend in part on their personal philosophical views.

Question 26

A reference to "28 U.S.C.Section 1332" means that a federal court's decision can be found on page 28 of section 1332 of the United States Cases.

Question 27

Hawaii enacts a state 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 Hawaii only.
D)the United States Supreme Court only.

Question 28

In most states, the courts no longer grant "equitable" remedies.

Question 29

Monetary damages is a remedy at law.

Question 30

A defendant is a person against whom a lawsuit is brought.

Question 31

Under Ohio's state constitution, the Ohio Environmental Protection Agency issues a new rule, the Polk County Commission approves a new property tax measure, and the professors and students at Ohio Law School publish the results of their most recent legal research.Sources of law do not include

A)the measures approved by local governing bodies.
B)the results of legal scholars' research.
C)the rules issued by state administrative agencies.
D)the states' constitutions.

Question 32

Equity is a branch of unwritten law that seeks to supply remedies of equal measure to the parties in a legal dispute.

Question 33

International law is the law of a foreign nation and varies from country to country.

Question 34

A court's direction to a party to do or to refrain from doing a particular act is a rescission.

Question 35

Rules and regulations adopted by federal administrative agencies are compiled in the Code of Federal Regulations.

Question 36

Most state trial court decisions are not published.

Question 37

A substantive law creates or defines legal rights and obligations.

Question 38

A court may depart from a precedent if the court decides that the precedent should no longer be followed.

Question 39

Criminal law focuses on duties that exist between persons.

Question 40

Krystal is a federal judge.Krystal's judicial decisions are part of case law.This law includes interpretations of primary sources of law.These sources include

A)administrative regulations.
B)articles in law reviews and other legal journals.
C)compilations summarizing court decisions on particular topics.
D)legal encyclopedias.

Question 41

The Securities Exchange Commission (SEC)is an administrative agency.Like other administrative agencies, the SEC was established to

A)act as a liaison between federal and state governments.
B)impose uniform laws on the states.
C)perform a specific function.
D)standardize laws for the executive and judicial branches.

Question 42

MaxiMart, Inc., is a discount retailer.MaxiMart's customer service employees are on strike.Sixty of the workers block the entrances to one of MaxiMart's stores.To get them away from the doors, MaxiMart should seek

A)an injunction.
B)damages.
C)rescission.
D)specific performance.

Question 43

The River City Council, the Santa Clara County Board, the Texas state legislature, and the U.S.Congress enact laws.These laws constitute

A)administrative law.
B)case law.
C)stare decisis.
D)statutory law.

Question 44

The U.S.Congress enacts a new federal statute that imposes liability on businesses emitting significant amounts of a certain pollutant into the environment.This statute applies

A)only to matters not covered by state law.
B)only to those states that adopt the statute.
C)to all of the states.
D)to none of the states.

Question 45

In an action against Elin, Frank 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.

Question 46

Crater Tools Company may be subject to regulations issued by the Occupational Safety and Health Administration (OSHA).Like other administrative agencies, the OSHA affects

A)almost every aspect of a business's operations.
B)almost no aspect of a business's operations.
C)a firm's capital structure and financing, but nothing else.
D)a firm's hiring and firing procedures, but nothing else.

Question 47

The federal government and the state governments constitute the U.S.legal system.This system is based on the legal system of

A)Ancient Greece.
B)England.
C)France.
D)the natural law school.

Question 48

Jill is an appellate court judge.In this capacity, Jill establishes a rule of law.Under the doctrine of stare decisis, the principle must be adhered to by

A)all courts.
B)courts of lower rank only.
C)that court and courts of lower rank.
D)that court only.

Question 49

In a suit against Sandy, Taylor obtains a remedy.In the U.S.legal system, this remedy will most likely be

A)an injunction.
B)damages.
C)rescission.
D)specific performance.

Question 50

A state trial court has before it Eagle Manufacturing Co.v.Talon Products Corp., a case with no binding authority.The court can

A)not refuse to decide the Eagle case.
B)postpone deciding Eagle indefinitely.
C)postpone deciding Eagle until there is binding authority.
D)refuse to decide Eagle.

Question 51

In Sales Distribution Corp.v.Consumer Products Co., the court decides that a precedent is incorrect or inapplicable.The court

A)may rule contrary to the precedent.
B)must apply the precedent.
C)must ask a higher court to rule on the case.
D)must refuse to decide the case.

Question 52

Network Corporation files a suit against Omega, Inc., alleging that Omega breached a contract to sell Network customized software.Network is

A)the appellant.
B)the appellee.
C)the defendant.
D)the plaintiff.

Question 53

The Federal Trade Commission (FTC)is a government agency that issues rules, orders, and decisions.The Georgia state legislature enacts statutes.The Jackson County Board and the Peach City Council enacts ordinances.Administrative law includes

A)all law that affects a business's operation.
B)the rules, orders, and decisions of the Federal Trade Commission.
C)statutes enacted by the Georgia state legislature.
D)ordinances created by the Jackson County Board and the city coun?cil of Peach City, Georgia.

Question 54

In Export Co.v.Imports, Inc., there is no precedent on which the court can base a decision.The court can consider

A)neither public policy nor social customs and values.
B)public policy only.
C)public policy or social customs and values.
D)social customs and values only.

Question 55

The legislature of the state of Missouri enacts a new statute that sets standards for the liability of businesses selling defective products.This statute applies

A)only in Missouri.
B)only in Missouri and its border states.
C)in all states.
D)in all states but only to matters not covered by other states' laws.

Question 56

In a suit against Clem, Dona obtains the cancellation of a contract.This is

A)an injunction.
B)damages.
C)rescission.
D)specific performance.

Question 57

In Ben v.City Car Dealership, a state supreme court held that a minor could cancel a contract for the sale of a car.Now a trial court in the same state is deciding Daphne v.Even Steven Auto Deals, Inc.,, a case with similar facts.Under the doctrine of stare decisis, the trial court is likely to

A)allow the minor in the Daphne case to cancel the contract.
B)disregard the Ben case.
C)order the minor in the Daphne case to cancel the contract.
D)require the minor in the Daphne case to fulfill the contract.

Question 58

Sam is a judge hearing the case of Local Co.v.National Corp.Applying the relevant rule of law to the facts of the case requires Sam 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.

Question 59

As a judge, Potter applies common law rules.These rules develop from

A)administrative regulations.
B)court decisions.
C)federal and state statutes.
D)proposed uniform laws.

Question 60

In a suit against Owen, Phil obtains specific performance.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 61

Beth is a victim of Carl's violation of a criminal law.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.
D)wrongs committed against the public as a whole.

Question 62

Grady is a judge.In his court, Grady may bar a suit if it is not filed within a proper time according to

A)a statute of limitations.
B)the doctrine of stare decisis.
C)the chancellor's discretion.
D)the king's conscience.

Question 63

Standard Business Company appeals a decision against it, in favor of Top Flight Corporation, from a lower court to a higher court.Standard is

A)the appellant.
B)the appellee.
C)the defendant.
D)the plaintiff.

Question 64

Overseas Exports, Inc., based in New York, does business internationally and may be subject to international law.The sources of this law include

A)the laws of individual nations only.
B)treaties and international organizations only.
C)the laws of individual nations, and treaties and international organizations.
D)none of the choices.

Question 65

Fact Pattern 1-1
The Texas Supreme Court decides the case of Livewire Co. v. Power Corp. Of nine justices, five believe the judgment should be in Livewire’s fa¬vor. Justice Bellamy, one of the five, writes a separate opinion. The four justices who believe the judgment should be in Power’s favor join in a third separate opinion.


-Refer to Fact Pattern 1-1.Bellamy's opinion is

A)a concurring opinion.
B)a dissenting opinion.
C)a majority opinion.
D)a per curiam opinion.

Question 66

Law enforcement officers suspect Chris of drug trafficking.Without a warrant, the officers install a tracking device on a vehicle belonging to Chris's mother.Tracking the vehicle with the device produces incriminating evidence, and Chris is charged with trafficking.He argues that the government's use of the device violated his Fourth Amendment rights by subjecting him to an unlawful "search." Under the principles discussed in "A Sample Court Case," United States v.Jones, the court is most likely to rule that the officers' installation of the device was

A)a search and an unlawful trespass.
B)not a search because incriminating evidence was produced.
C)not a search because the officers did not obtain a warrant.
D)not a search because only the officers knew about the device.

Question 67

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 legal system

Question 68

To Cody, the written law of a particular society at a particular time is most significant.Cody is

A)a legal positivist.
B)a legal historian.
C)a legal realist.
D)a person who adheres to the natural law school.

Question 69

Americans with a Better Cause (ABC), a nonprofit 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

Question 70

Fact Pattern 1-1
The Texas Supreme Court decides the case of Livewire Co. v. Power Corp. Of nine justices, five believe the judgment should be in Livewire’s fa¬vor. Justice Bellamy, one of the five, writes a separate opinion. The four justices who believe the judgment should be in Power’s favor join in a third separate opinion.


-Refer to Fact Pattern 1-1.These opinions are collected and published in volumes called

A)citations.
B)codes.
C)regulations.
D)reporters.

Question 71

The title of a case appears as "Duck Sales Corp.v.Egret Supply Co." The party in whose favor the case was decided

A)could be either party.
B)must be neither party.
C)must be Duck.
D)must be Egret.

Question 72

Fact Pattern 1-1
The Texas Supreme Court decides the case of Livewire Co. v. Power Corp. Of nine justices, five believe the judgment should be in Livewire’s fa¬vor. Justice Bellamy, one of the five, writes a separate opinion. The four justices who believe the judgment should be in Power’s favor join in a third separate opinion.


-Refer to Fact Pattern 1-1.The opinion joined by the four justices who favor Power is known as

A)a concurring opinion.
B)a dissenting opinion.
C)a majority opinion.
D)a per curiam opinion.