Question 1

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

Accepted Answer

The most typical remedy in a lawsuit would be damages. Damages refer to a monetary award granted to a plaintiff as compensation for his or her loss or injury caused by the defendant's conduct. An injunction refers to a court's order to a party to stop doing something, whereas rescission and specific performance are remedies that are generally associated with contracts, not lawsuits.

Question 2

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

Accepted Answer

The statute enacted by the state of Missouri would only apply within that state's jurisdiction. It would not have any effect on businesses or liabilities outside of Missouri's borders.

Question 3

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

Accepted Answer

Statutory law is law that is written and enacted by a governing body such as the River City Council, the Santa Clara County Board, the Texas state legislature, and the U.S. Congress. This distinguishes it from administrative law (laws/regulations made by administrative agencies) and case law (laws made by judicial decisions). Stare decisis refers to the principle that courts should follow precedents set by previous court rulings.

Question 4

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

Accepted Answer

Network Corporation is the party that initiates the legal action by filing a suit against Omega, Inc. They are thus the plaintiff in this case.

Question 5

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

Accepted Answer

Administrative law includes the rules, orders, and decisions made by government agencies like the Federal Trade Commission. Statutes and ordinances are part of statutory law, not administrative law. Therefore, choices C and D are incorrect. While choice A may be true to some extent, administrative law specifically pertains to laws and regulations created by government agencies.

Question 6

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

Accepted Answer

Sam needs to find previously decided cases that are as similar as possible to the case under consideration in order to apply the relevant rule of law. This is because precedents are based on the principle of stare decisis, which means that similar cases should be treated in the same way. Therefore, cases that are as similar as possible would provide the most guidance for the current case.

Question 7

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

Accepted Answer

Rescission refers to the cancellation of a contract and is the most appropriate choice given the situation described in the question. An injunction is a court order that requires a person to refrain from doing something, damages refer to monetary compensation for losses incurred, and specific performance requires a party to fulfill the terms of a contract. None of these options fit the scenario presented in the question as well as rescission does.

Question 8

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

Accepted Answer

OSHA regulations can affect almost every aspect of a business's operations, including workplace safety, record keeping, training, and reporting requirements.

Question 9

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

Accepted Answer

Common law rules develop from court decisions, as judges interpret and apply legal principles to specific cases. Administrative regulations, federal and state statutes, and proposed uniform laws are all sources of statutory law that may also influence legal decisions, but they are not considered common law.

Question 10

In an action against Elin,Frank obtains a remedy.This is

Accepted Answer

Obtaining a remedy means obtaining the legal means to recover a right or to redress a wrong. This can be through a court order, a settlement agreement, or some other legal mechanism. A, B, and C are all sources of law, but they do not necessarily result in a remedy for a particular individual.

Question 11

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

Accepted Answer

In Sales Distribution Corp.v.Consumer Products Co., if the court decides that a precedent is incorrect or inapplicable, they may rule contrary to the precedent. The court is not bound to follow precedent if they find it to be incorrect or inapplicable.

Question 12

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

Accepted Answer

An injunction is a court order that requires the striking employees to stop blocking the entrances to the store. This is the best choice for MaxiMart to resolve the immediate issue and resume normal business operations. Damages, rescission, and specific performance are not appropriate remedies in this situation.

Question 13

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

Accepted Answer

The doctrine of stare decisis requires that courts adhere to established precedents set by higher courts, as well as their own prior decisions. Therefore, the rule established by Judge Jill must be adhered to by that court and any courts of lower rank.

Question 14

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

Accepted Answer

In the absence of precedent, the court can consider either public policy or social customs and values, or both to arrive at a decision. Therefore, options A and D, which restrict the court's consideration to only one of the two factors, are incorrect. Option B, which suggests that the court can only consider public policy, is also incorrect as social customs and values can also influence the decision. Hence, option C is the best choice as it acknowledges that the court can consider either or both of these factors.

Question 15

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

Accepted Answer

Administrative agencies are created to perform specific functions, and the SEC's function is to regulate and oversee securities markets in the United States. Therefore, choice C is the best answer.

Question 16

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

Accepted Answer

Federal statutes apply to all states and override conflicting state laws. Therefore, this statute would apply to all states.

Question 17

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

Accepted Answer

The U.S. legal system is based on the common law legal system of England. Many of the foundational concepts and principles of American law can be traced back to English common law, including the idea of precedent and the adversarial legal system.

Question 18

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

Accepted Answer

The court cannot refuse to decide the case just because there is no binding authority. The court has the responsibility to make a decision based on the facts and the law presented before it.

Question 19

In a suit against Owen,Phil obtains specific performance.This is

Accepted Answer

Specific performance is an equitable remedy where the court orders the breaching party to perform what was promised in the contract. It is not an order to refrain from doing a particular act (A), a payment of compensation (C), or the cancellation of the contract (D).

Question 20

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

Accepted Answer

The doctrine of stare decisis requires lower courts to follow the precedent set by higher courts in similar cases. In this scenario, the Ben v. City Car Dealership case is binding precedent in the same state and involves similar facts to the Daphne v. Even Steven Auto Deals, Inc. case. Therefore, the trial court is likely to follow the precedent and allow the minor in the Daphne case to cancel the contract, as the state supreme court held in the Ben case.

Quiz 1: Business and Its Legal Environment