Deck 1: Business and Its Legal Environment

Question 1

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

Answer 1

False

Question 2

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

Answer 2

True

Question 3

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

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

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

Question 7

Whether a law is constitutional depends on its source.

Question 8

Constitutional law includes only the U.S. Constitution.

Question 9

Federal administrative agencies specify the powers of Congress.

Question 10

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

Question 11

The natural law philosopher believes that the law should reflect universal moral and ethical principles that are part of human nature.

Question 12

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

Question 13

A decision on a given issue by a court is not binding on any other court.

Question 14

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

Question 15

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

Question 16

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

Question 17

State agency regulations take precedence over conflicting federal agency regulations.

Question 18

Federal statutes apply to all states.

Question 19

Common law is not a source of legal authority.

Question 20

Every state has adopted the Uniform Commercial Code in its entirety.

Question 21

Damages is a remedy at law.

Question 22

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

Question 23

Equitable remedies include injunctions and decrees of specific performance.

Question 24

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

Question 25

A reference to "28 U.S.C. Section 1432" means that a federal court's decision can be found o

Question 26

If a provision in the Alabama state constitution conflicts with a provision in the U.S. Constitution

A) neither provision applies.
B) the provisions are balanced to reach a compromise.
C) the state constitution takes precedence.
D) the U.S. Constitution takes precedence.

Question 27

A substantive law creates or defines legal rights and obligations.

Question 28

Equity is a branch of unwritten law that seeks to supply remedies other than damages.

Question 29

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

Question 30

To Opal, the law is a tool for promoting justice. This is a view of what is sometimes called

A) promotional jurisprudence.
B) the just society.
C) the sociological school.
D) utilitarianism.

Question 31

Voters in North Carolina approve a new state constitution, after which the Ocean City Council passes new ordinances, the North Carolina Department of Parks and Recreation issues new rules, and the Ocean City Chamber of Commerce sends out new instructions. Sources of law do not include

A) instructions issued by the Ocean City Chamber of Commerce.
B) ordinances passed by the Ocean City Council.
C) rules issued by the North Carolina Department of Parks and Recreation.
D) state constitutions passed by popular vote.

Question 32

In most states, a court can grant legal remedies or equitable remedies, but not both in the same case.

Question 33

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

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

Question 34

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

Question 35

Criminal law focuses on duties that exist between persons.

Question 36

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

Question 37

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

Question 38

Courts do not depart from precedents.

Question 39

Most state trial court decisions are not published.

Question 40

Alaska passes 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 Alaska only.
D) the United States Supreme Court only.

Question 41

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 enforce a right or to redress a wrong.

Question 42

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

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

Question 43

A state trial court has before it Eagle Manufacturing Co. v. Fine 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 44

Karen is a judge hearing the case of Local Co. v. Macro Corp. Applying the relevant rule of law to the facts of the case requires Kurt 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 45

Mariah is a consultant to the National Conference of Commissioners on Uniform State Laws. This organization

A) adopts uniform laws for the states.
B) applies uniform laws to the states.
C) drafts uniform laws for adoption by the states.
D) imposes uniform laws on the states.

Question 46

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 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 47

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 48

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

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

Question 49

Areas of the law not governed by statutory or administrative law are

A) governed by the common law.
B) open to each individual's own interpretation.
C) regulated by the states under the U.S. Constitution.
D) subject to local ordinances.

Question 50

In a suit against Chad, Dodie obtains the cancellation of a contract, which is

A) a decree of specific performance.
B) an award of damages.
C) an injunction.
D) rescission.

Question 51

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) Ancient Rome.
C) England.
D) France.

Question 52

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

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

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) decisions, orders, and rules of the FTC.
C) ordinances enacted by county board and the city council.
D) statutes enacted by the state legislature.

Question 54

Lois is an appellate court judge. In this capacity, she 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 55

The U.S. Congress passes a new federal statute that sets different standards for the liability of businesses selling defective products. 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 56

Network Corporation files a suit against Omega, Inc., alleging that Omega breached a contract to sell Nett a computer system. Network is

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

Question 57

Connie is a federal judge. Connie's judicial decisions are part of case law. This law includes interpretations of

A) administrative regulations only.
B) constitutional provisions only.
C) statutes only.
D) administrative regulations, constitutional provisions, and statutes.

Question 58

In a suit against Kathy, Lon obtains specific performance. This is

A) a direction to a party to do or refrain from doing a particular act.
B) an award of compensation.
C) an order to perform what was promised.
D) the cancellation of a contract.

Question 59

The "common law" is referred to as the common law because

A) it is the law that is familiar to most of us.
B) it was originally applied only to commoners.
C) it was more or less uniform throughout England.
D) the law was issued by courts of common pleas.

Question 60

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 refuse to decide the particular case.
D) must "stand on the decided case."

Question 61

Fact Pattern 1-1
The Texas Supreme Court decides the case of Livewire Co. v. Power Corp. Of nine justices, six believe the judgment should be in Livewire's favor. Justice Bellamy, one of the six, 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.

Question 62

In a lawsuit between Super Sales Corporation and Topper 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 63

Holly is a state court judge. Ilsa appears in a case in Holly's court, claiming that Jim breached a contract. As in most state courts, Holly may

A) award damages, cancel the contract, or direct a party to do or not to do an act.
B) award damages only.
C) cancel the contract only.
D) direct a party to do or not to do a particular act only.

Question 64

When Overseas Sales, Inc., based in New York, does business internationally, the firm 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

Florida public policy is to protect consumers from unfair and deceptive business practices. A state statute declares unenforceable any waiver of its provisions, which include a provision for consumer class actions. WISP Inc. requires its customers to sign an agreement that designates South Dakota courts and law to govern all disputes. In a suit by a group of Florida consumers against WISP, the court is most likely to rule that the agreement is, under the principles discussed in "A Sample Court Case," Doe 1 v. AOL LLC

A) enforceable because there is no reason not to enforce it..
B) enforceable because the parties had equal "bargaining power."
C) unenforceable as a violation of Florida policy and law.
D) unenforceable as a violation of South Dakota policy and law.

Question 66

Fact Pattern 1-1
The Texas Supreme Court decides the case of Livewire Co. v. Power Corp. Of nine justices, six believe the judgment should be in Livewire's favor. Justice Bellamy, one of the six, 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 67

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 68

Lev is a judge. In his court, Lev 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 69

The Olympic Torch Relay passed through Juneau, Alaska, on its way to the winter games in Salt Lake City, Utah, in 2002. Students at Juneau-Douglas High School (JDHS) were permitted to leave class to observe the relay. As it passed in front of the school, Joseph Frederick, a senior, and his friends unfurled a banner bearing the phrase: "BONG HiTS 4 JESUS." Deborah Morse, JDHS's principal, confiscated the banner and suspended Frederick for ten days. Frederick's suit against Morse was eventually appealed to the United States Supreme Court. The Court's opinion in the case is at Morse v. Frederick, __ U.S. __, 147 S.Ct. 2618, 168 L.Ed.2d 290 (2007). Specifically where can this opinion be found

Question 70

Fact Pattern 1-1
The Texas Supreme Court decides the case of Livewire Co. v. Power Corp. Of nine justices, six believe the judgment should be in Livewire's favor. Justice Bellamy, one of the six, 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 71

Guru Internet, Inc. (GII), is an Internet service provider. GII's tech support employees are on strike. Six of the workers are blocking GII's door. To get them away from the door, GII should obtain

A) a decree of specific performance.
B) an award of damages.
C) an injunction.
D) a rescission.

Question 72

Beth is a victim of Carlyle'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.