Deck 1: The Legal and Constitutional Environment of Business

Question 1

Federal statutes apply to all states.

Answer 1

True

Question 2

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

Answer 2

True

Question 3

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

Answer 3

True

Question 4

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

Question 5

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

Question 6

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

Question 7

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

Question 8

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

Question 9

The federal government cannot regulate commerce within a state,regardless of the effect of the commerce on other states.

Question 10

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

Question 11

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

Question 12

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

Question 13

Administrative agencies are established to perform specific functions.

Question 14

Criminal law focuses on duties that exist between persons.

Question 15

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

Question 16

Theoretically,Congress can regulate every commercial enterprise in the United States.

Question 17

Courts never depart from precedents.

Question 18

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

Question 19

Equitable remedies include injunctions.

Question 20

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

Question 21

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 22

Procedural due process requires that any taking of a person's life,liberty,or property by government must be made fairly.

Question 23

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 24

The First Amendment protects commercial speech more extensively than noncommercial speech.

Question 25

Political speech that would otherwise be protected by the First Amendment is prohibited if its source is a corporation.

Question 26

Expression of all kinds is subject to reasonable restrictions.

Question 27

The Bill of Rights confers absolute rights,not subject to interpretation by the United States Supreme Court.

Question 28

A state law that places a significant burden on religion is unconstitutional.

Question 29

Under their police powers,states can regulate only public activities,such as political demonstrations.

Question 30

Some constitutional protections apply to business entities.

Question 31

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 32

The terms "procedural due process" and "substantive due process" mean the same thing.

Question 33

When state regulations affect interstate commerce,commerce must always yield to the regulations.

Question 34

Most state trial court decisions are not published.

Question 35

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 36

Under the Constitution,the states retain all powers not specifically delegated to the federal government.

Question 37

A restriction on commercial speech that implements a substantial government interest may be valid.

Question 38

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

Question 39

The establishment clause of the U.S.Constitution prohibits the federal government from establishing an official religion.

Question 40

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 41

A Minnesota state statute restricts certain kinds of advertising to protect consumers from being misled.A court would likely hold this statute 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 42

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 43

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

A)police powers.
B)taxing powers.
C)spending powers.
D)supreme powers.

Question 44

Tori files a suit against the state of Utah,claiming that a Utah state law violates the commerce clause.The court will agree if the statute

A)impinges on citizens' private activities.
B)imposes a substantial burden on interstate commerce.
C)imposes a substantial burden on the state.
D)promotes the public order,health,safety,morals,or general welfare.

Question 45

Dru,a U.S.citizen,is the owner of Egret,Inc.Egret's competitors include Feathered Friends Company (FFC),which is owned by Greg and Huey.The Bill of Rights embodies a series of protections for Dru against types of interference by

A)FFC and its other competitors only.
B)FFC,Greg,Huey,others,and the government.
C)Greg,Huey,and other private individuals only.
D)the government only.

Question 46

Mavis,an advocate of a certain religion,publishes an article in New Times magazine insisting that Congress base all federal law on her religion's principles.The First Amendment guarantees Mavis's freedom of

A)religion only.
B)speech only.
C)religion and speech.
D)neither religion nor speech.

Question 47

In Export Co.v.Finance Corp. ,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 but not social customs or values.
C)public policy or social customs and values.
D)social customs or values but not public policy.

Question 48

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 49

Business Markets Coalition (BMC),a political lobbying group,wants a certain policy enacted into law.If BMC's policy conflicts with the U.S.Constitution,a law embodying it can be enacted by

A)any state legislature and Congress.
B)any state legislature but not Congress.
C)Congress but not any state legislature.
D)none of the choices.

Question 50

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 51

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 52

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 53

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 54

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 55

Beachside City enacts an ordinance that bans the distribution of all printed materials on city streets.Carl opposes the city's latest "revenue-enhancing" measure and wants to protest by distributing handbills.In his suit against the city,a court would likely hold the printed-materials ban 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 56

Serene City enacts an ordinance that bans the use of "sound amplifying systems" on public streets.Tyler wants to campaign for a seat on the city council by broadcasting his message through speakers mounted on a truck.In Tyler's suit against the city,a court would likely hold the ordinance 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 57

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 58

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 59

Network Corporation files a suit against Omega,Inc. ,alleging that Omega breached a contract to design and install custom software in Network's computer system.Network is

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

Question 60

The state legislature of Iowa enacts a transportation statute that impinges on interstate commerce.This statute will be

A)balanced in terms of Iowa's interest in regulating a certain matter against the burden placed on interstate commerce.
B)balanced in terms of the burden on Iowa against the merit and purpose of interstate commerce.
C)struck down.
D)upheld.

Question 61

The Constitution provides that no person shall be deprived of "life,liberty,or property without due process of law." Under this clause,"persons" include

A)animals and other "beings in nature."
B)buildings and other "manmade creations."
C)corporations and other "legal persons."
D)none of the choices.

Question 62

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 63

The Arkansas state legislature enacts a statute that prohibits the advertising of video games "because the games might be harmful to minors." Despite this new statute,the president of Games Marketing,Inc.(GMI),orders GMI marketers to place ads in any media.When a GMI ad appears on HDTV,a local television station,GMI and HDTV are charged with violating the statute.What is the defendants' best defense against a conviction?

Question 64

Orin claims that a Pennsylvania state statute infringes on his "substantive due process" rights.This claim focuses on

A)procedures used to make decisions to take life,liberty,or property.
B)the content of the statute.
C)the similarity of the treatment of similarly situated individuals.
D)the steps to be taken to protect Orin's privacy.

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

Justice For All,a political organization,files a claim to challenge a Colorado statute that limits the liberty of all persons to broadcast "annoying" radio commercials.This claim is most likely based on the right to

A)engage in interstate commerce.
B)privacy.
C)procedural due process.
D)substantive due process.

Question 67

Adult Shoppe in Beach City sells a variety of publications,including child pornography.Beach City enacts an ordinance prohibiting the sale of such materials.This ordinance is most likely

A)an invalid restriction of individuals' privacy.
B)an unconstitutional restriction of speech.
C)a violation of adults' rights to enjoy certain privileges.
D)constitutional under the First Amendment.

Question 68

Melanie engages in speech that harms others' good reputations on her blog at no.lie.com.The First Amendment gives such speech

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

Question 69

Marie claims that a Nebraska state statute infringes on her "procedural due process" rights.This claim focuses on

A)procedures used in making decisions to take life,liberty,or property.
B)the content of the statute.
C)the similarity of the treatment of similarly situated individuals.
D)the steps to be taken to protect Mary's privacy.

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.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 71

Brad stands in front of Rustler's Round-Up Café,shouting "fighting words" that are likely to incite Rustler's patrons to respond violently.The First Amendment protects such speech

A)all of the time.
B)none of the time.
C)only if it is noncommercial.
D)only if it is symbolic.

Question 72

Jen operates Jen's Fruits & Vegetables,a small market stocked entirely with produce grown on her adjacent farm.Under what clause of the Constitution can the federal government regulate Jen's activities? What is Jen's best argument against federal regulation of her farm and business?