Question 1

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.

Accepted Answer

Employing in-house counsel can help manage the increased volume of intellectual property rights efficiently, providing specialized legal support tailored to the company's specific needs, including copyright registration and protection.

Question 2

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.

Accepted Answer

The Second Amendment of the U.S. Constitution protects the right of the people to keep and bear arms, and a state law that outright bans private citizens from owning or possessing guns would violate this federal constitutional protection.

Question 3

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

Accepted Answer

The law created by the state of North Carolina is an example of primary authority because it is a statute officially enacted by a governmental body (in this case, the state legislature) and has binding legal force.

Question 4

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

Accepted Answer

The opinion of the U.S. Supreme Court in this case serves as a precedent, meaning it is a legal case that establishes a principle or rule that courts may follow in future cases with similar issues or facts.

Question 5

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

Accepted Answer

The correct answer is D) Stare decisis, which is the legal principle of determining points in litigation according to precedent. The Supreme Court's decision would serve as a precedent for future cases, applying the principle of stare decisis.

Question 6

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.

Accepted Answer

Missouri laws will apply to Rachel when she is driving in Missouri because drivers must adhere to the traffic laws of the state they are currently driving in, regardless of where they are licensed.

Question 7

__________ has the power to regulate interstate commerce.
A) The U.S. Supreme Court
B) Congress
C) The President
D) The Department of Justice

Accepted Answer

Congress has the power to regulate interstate commerce, as granted by the Commerce Clause of the United States Constitution.

Question 8

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.

Accepted Answer

Statutory law is created by the legislative branch of government and then approved or enacted by the executive branch, such as a president or governor.

Question 9

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

Accepted Answer

Congress can override a presidential veto by achieving a 2/3 majority vote in both the House of Representatives and the Senate.

Question 10

__________ is derived from the courts.
A) Civil law
B) Criminal law
C) Equity law
D) Statutory law

Accepted Answer

Equity law is derived from the courts, specifically from the decisions and principles developed by judges to provide remedies that were not available in common law. Equity law focuses on fairness and justice in cases where traditional legal remedies are inadequate.

Question 11

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

Accepted Answer

Common law, characterized by case law developed by judges through decisions of courts and similar tribunals, is primarily used in the United States, United Kingdom, Canada, and Australia. These countries have legal systems based on English common law, which relies on precedents and judicial decisions to guide legal reasoning and rulings.

Question 12

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

Accepted Answer

Bankruptcy laws are governed at the federal level, as established by the United States Constitution and implemented through federal statutes.

Question 13

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.

Accepted Answer

Alexander might sue Eowynn for the equitable remedy of specific performance, which compels the party to perform the agreed-upon terms of the contract, in this case, to sell the car as agreed. This remedy is often used in cases involving unique items, like a vintage car, where monetary damages would not be sufficient to make the buyer whole.

Question 14

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

Accepted Answer

Non-compliance refers to the deliberate choice to not adhere to a rule or regulation, which in this case is Tara's decision to park in front of an expired meter and accept the parking tickets instead of paying for a parking lot.

Question 15

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

Accepted Answer

Avoidance is the strategy of legally arranging one's affairs to minimize tax liabilities. In this case, Marty Company is moving to a jurisdiction with lower taxes, which is a common tax avoidance strategy.

Question 16

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

Accepted Answer

This strategy is called prevention, as it involves taking steps to avoid potential legal issues by ensuring company policies comply with legal standards.

Question 17

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

Accepted Answer

Value Creation is a business strategy that focuses on creating value for customers and stakeholders. Securing patents for all of their creations and inventions is an example of this strategy because it helps to protect the company's intellectual property and gives them a competitive advantage.

Question 18

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.

Accepted Answer

Evan's actions can lead to both criminal and civil liabilities. Criminally, for the act of arson, and civilly, for the damages caused to the business and his partners.

Question 19

Business Corporation Law is an example of what type of law?
A) Procedural law
B) Private law
C) Public law
D) Civil law

Accepted Answer

The answer of Business Corporation Law is an example of...

Question 20

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

Accepted Answer

A bill is the correct term for proposed legislation that has been introduced in Congress but has not yet been passed or become law. Bills must be approved by both houses of Congress and the President before they become law.

Quiz 1: Legal Foundations and Thinking Strategically

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

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:

__________ has the power to regulate interstate commerce.

Statutory law is

Congress can override a presidential veto of a bill by:

__________ is derived from the courts.

Common law is used by

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?

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

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?

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

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)