Business Law Quiz 1a - Key Chapter 1 - True or False 1.

Congress can only pass legislation that falls within the limits set up by the US Constitution. T 2. Only the US federal government has a constitution. F 3. State agencies take precedence over conflicting federal agency regulations. F Review Question Bob has a dispute with Ace Company over a perceived product defect. Bob hires a lawyer and after discussing the facts and issues, Bobs attorney agrees to file a lawsuit against Ace. 1. Who is the plaintiff and who is the defendant in this lawsuit? 2. Which court would this lawsuit be filed in? lower court, or trial court 3. Would a contingency fee agreement between Bob and his lawyer likely to be used in this case? 4. If the trial court rules against Bob, what are his options? Motion for reconsideration/appeal Chapter 2 - True or False 1. The function of the courts is to interpret and apply the law. 2. A long arm statute permits a court to obtain jurisdiction over an out-of-state defendant. 3. To have standing to sue, a party must have been injured or have been threatened with injury by the action about which he or she is complaining. 4. The US Supreme Court can review a decision by a states highest court only if a question of federal law is involved. T 5. Mediation is adversarial in nature. F Multiple choice: Harry, resident of Indiana, has an accident with Jane, a resident of Kentucky, while driving through that state. Jane files a suit against Harry in Kentucky. Regarding Harry, Kentucky has: a. Diversity jurisdiction; b. In personam jurisdiction: B c. In rem jurisdiction; d. No jurisdiction. Chapter 3 - True or False 1. 2. 3. 4. In most states, if neither party requests a jury, there will be no jury trial. T At the beginning of a trial, only the plaintiffs attorney makes an opening statement. F A plaintiffs rebuttal includes evidence to refute the defendants case. T A motion for a judgment notwithstanding the verdict seeks to set aside a verdict and enter a new verdict in favor of the nonprevailing party. T 5. A party who files an appeal is known as an appellant. T Multiple Choice: To begin a lawsuit, Allen files a complaint against Beth, who responds with an answer. Taken together, the complaint and answer are:

a. b. c. d.

Depositions and interrogatories; Discovery; Hearsay; The pleadings. D

Kyle files a suit against Lora. The document that informs Lora that she is required to respond is: a. The answer; b. The complaint; c. The service of process; d. The summons. D The trial phase where attorneys engage in voir dire is also known as: a. The assessment of the arguments on the issues; b. The determination of the issues to be argued; c. The litigation of the issues and arguments; d. The selection of jurors. D Chapter 4 - True or False 1. The courts make the final determination on issues involving constitutional interpretation. 2. Under their police powers, states can regulate private activities to protect or promote the public order, health, safety, morals, and general welfare. T 3. A state law that treats nonresidents different from residents may violate the privileges and immunities clause. T 4. Under the US Constitution, each branch of government limits some actions of the other branches. T 5. The supremacy clause of the Constitution provides that a state law is invalid when it directly conflicts with a federal law. T 6. The Bill of Rights protects individuals against various types of interference by the states and by the federal government. T 7. The First Amendment protects obscene speech. F Multiple choice: 1. Under the Constitution, the legislative branch of the government: a. Administers the laws; b. Enforces the laws; c. Makes the laws; C d. Does all three above. Chapter 5 - True or False 1. Ethics focuses on the way in which moral principles apply in daily life. T 2. Ethical reasoning is the process through which a person rationalizes whatever action he or she chooses to take. F 3. Corporate ethical policies must be clearly communicated to be effective. T

4. Corporations can be perceived as owing ethical duties to groups other than their shareholders. T 5. Simply obeying the law does not fulfill all ethical obligations. T p. 107 Multiple Choice 1. In taking business law, students learn that ethics is the study of what constitutes: a. Financial rewarding behavior; b. Legal behavior; c. Religious behavior; d. Right or wrong behavior. D 2. Elly works in the public relations department of Ace Company. Her job includes portraying Aces activities in their best light. In this context, ethics consist of: a. A different set of principles from those that apply to other activities; b. The same moral principles that apply to non-business activities; c. Those principles that produce the most favorable financial outcome; C d. Whatever saves Aces face. Chapter 43 - True or False 1. 2. 3. 4. 5. Administrative agencies create administrative law. T p. 886 Administrative agencies may issue regulations. T p. 886 Administrative agencies are independent of the three branches of government. F p. 888 An administrative agency cannot conduct a search without a warrant. F p. 897 Most disputes over administrative actions are resolved through negotiated settlements at their initial stages. T p. 897 6. A party to a case may appeal the order of an administrative law judge to the board or commission that governs the agency. T p. 898 Multiple Choice 1. The state legislature leaves it to the Department of Corrections to oversee the promulgation of detailed regulations in areas under the agencys jurisdiction. This is: a. The divine right; b. The delegation of legislative powers; B p. 887 c. Gap-filling power; d. Unconstitutional conduct. 2. Moms Diner pays income and other taxes collected by the IRS. Like other federal administrative agencies, the IRS was created by: a. Congress, through enabling legislation. b. The courts, through the adjudicatory process; c. The US Constitution, through the 8th Amendment; d. The executive branch through its governmental police powers.