Congress can only pass legislation that falls within the limits set up by the U.S. Constitution.
Stare decisis is a doctrine obligating judges to help persons who have failed to protect their own rights.
How judges apply the law to specific disputes may depend in part on their personal philosophical views.
Rules and regulations adopted by federal administrative agencies are compiled in the Code of Federal Regulations.
The River City Council, the Santa Clara County Board, the Texas state legislature, and the U.S. Congress enact laws. These laws constitute
d. statutory law.
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
c. to all of the states.
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.
If a provision in the Florida state constitution conflicts with a provision in the U.S. Constitution
d. the U.S. Constitution takes precedence.
As a judge, Nina decides cases that involve principles of various sources of law. Common law is
b. case law.
The federal government and the state governments constitute the U.S. le¬gal system. This system is based on the legal system of
In a suit against Owen over the performance of their contract, Phil ob¬tains specific performance. This is
b. an order to perform what was promised.
MaxiMart, Inc., is a discount retailer. MaxiMart's customer service em¬ployees 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
c. an injunction.
Leona enters into a contract with Munchie Bakery to cater a sales con¬ference. When the conference is postponed indefinitely, Leona asks a court to cancel the contract. This request involves
a. an equitable remedy.
Eliza is a state court judge. Flora appears in a case in Eliza's court, claim¬ing that Glover breached a contract. As in most state courts, Eliza may
a. award damages or cancel the contract.
Diana is a state court judge. In her court, as in most state courts, she may grant in a particular case
c. equitable and legal remedies.
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
c. that court and courts of lower rank.
In Sales Distribution Corp. v. Consumer Products Co., the court decides that a precedent is incorrect or in¬ap¬plicable. The court
a. may rule contrary to the precedent.
Brian's pick-up truck collides with Miranda's semi-trailer on a county highway. Weighing Brian's liability for the collision, Rachel, a judge, reasons by analogy. To reason by analogy is to
a. compare the facts in previous cases and apply the same rule of law.
Quinn is a state court judge. In the case of Royal Banners, Inc. v. Superior Flags Co., Quinn establishes a logical relationship by compar¬ing the facts in the case to the facts in other cases and, to the ex¬tent the facts are similar, applies the same rule. This is
d. reasoning by analogy.
Julius is a judge. How the Julius and the judges in other courts interpret a particular statute determines
a. how that statute will be applied.
To Serena, the written law of a particular society at a particular time is most signifi¬cant. Serena is
a. a legal positivist.
Standard Business Company appeals a decision against it, in favor of Fast Delivery Corporation, from a lower court to a higher court. Standard is
a. the appellant.
The title of a case appears as "Duck Down Corp. v. Egret Feathers Co." The party in whose favor the case was decided
a. could be either party.
The South Carolina Supreme Court decides the case of Toy Co. v. Umbrella Corp. The court issues an opinion that does not indicate which justice authored it. This opinion is
d. a per curiam opinion.
Law is a body of enforceable rules governing relationships among individuals and between individuals and their society.
A reference to "28 U.S.C. Section 1332" means that a statute can be found in section 1332 of title 28 of the United States Code.
The legislature of the state of Mississippi enacts a new statute that sets stan¬dards for the liability of businesses selling defective products. This statute applies
a. only in Mississippi.
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 statute.
Hawaii enacts a state law that violates the U.S. Constitution. This law can be enforced by
a. no one.
The Federal Trade Commission is a government agency that issues rules, orders, and decisions. The Georgia state legislature enacts stat¬utes. The Jackson County Board and the Peach City Council enacts or¬dinances. Administrative law includes
b. the rules, orders, and decisions of the Federal Trade Commission.
The Securities Exchange Commission is an administrative agency. The chief purpose of such agencies is to
c. perform specific government functions.
In a suit against Corbin, Donatella obtains damages. This is
c. a payment of money or property as compensation.
In an action against Elin, Frank obtains a remedy. This is
d. the legal means to recover a right or to redress a wrong.
In a suit against Evan, Floyd obtains an injunction. This is
a. an order to do or to refrain from doing a particular act.
In a suit against Vladimir over the performance of a contract, Wyler obtains rescission. This is
d. the cancellation of a contract.
In a suit against Sandy, Tippy obtains damages. In the U.S. legal system, this remedy at law is
Maggie and Nate enter into a contract for the sale of car, but Nate later refuses to deliver the goods. Maggie asks a court to order Nate to perform as promised. Ordering a party to perform what was promised is
a. an equitable remedy.
As a judge, Diane applies common law rules. These rules develop from
a. decisions of the courts in legal disputes.
Craig is a state court judge. In his court, as in most state courts, legal and equitable remedies have merged. But it is important to distinguish between equitable and legal remedies
d. to request a proper remedy.
In Ben v. City Car Dealership, a state supreme court held that a minor could cancel a con¬tract for the sale of a car. Now a trial court in the same state is decid¬ing Daphne v. Even Steven Auto Deals, Inc.,, a case with similar facts. Under the doctrine of stare de¬cisis, the trial court is likely to
a. allow the minor to cancel the contract.
In Export Co. v. Imports, Inc., there is no precedent on which the court can base a decision. The court can consider, among other things,
c. public policy or social values.
A federal statute regulates an employment practice. To resolve a dispute concerning the practice, Paula, a judge, will most likely apply
d. the statute.
Fact Pattern 1-A1 (Questions A17-A19 apply)
The Texas Supreme Court decides the case of Livewire Entertainment Co. v. Power Play Corp. Of nine justices, six believe the judgment should be in Livewire's fa¬vor. Justice Bellamy, one of the six, writes a separate opinion. The four justices who be¬lieve the judgment should be in Power's favor join in a third separate opinion.
At a prison in Ohio, inmate Steve recruits other inmates to play Towers & Trolls, a potentially violent, fantasy, role-playing game. Ryan, the prison's warden, confiscates the game materials and bans its play at the prison. Under the principles discussed in "A Sample Court Case," Singer v. Raemisch, Ryan most likely acted
d. reasonably in the circumstances and under the law.
The political branch of government is the final authority concerning the constitutionality of a law.
Under a long arm statute, a court cannot exercise jurisdiction over a defendant who has minimum out-of-state contacts.
A state court can exercise jurisdiction over property located within the state's boundaries regardless of the property owners' location.
For purposes of diversity of citizenship, a corporation is a citizen only of the state in which its principal place of business is located.
A business firm may have to comply with the laws of any jurisdiction in which it actively targets customers for its products.
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.
Courts of appeals conduct new trials in which evidence is submitted to the court but witnesses are not examined.
The United States Supreme Court can review any case decided by any of the federal courts of appeals.
A closing argument is a statement by a party that results in a summary judgment in that party's favor.
Harvey, a resident of Indiana, has an accident with Janette, a resident of Kentucky, while driving through that state. Janette files a suit against Harvey in Kentucky. Regarding Harvey, Kentucky has
b. in personam jurisdiction.
Inferior Company, which is based on South Carolina, makes and sells products that are poorly made. Jack, who is a resident of North Carolina, buys an Inferior product and suffers harm through its use. The diversity of citizenship between these parties means that
a. federal and state courts have concurrent jurisdiction.
Lora is a resident of Illinois. Ned is a resident of Wisconsin. They dispute the ownership of a boat docked in a Michigan harbor. This diversity of citizenship could serve as a basis for
a. federal jurisdiction.
Jo files a suit against Kara in a Missouri state court. Kara's only connection to Missouri is an ad on the Web originating in Nebraska. For Missouri to exercise jurisdiction, the issue is whether Kara, through her ad, has
b. conducted substantial business with Missouri residents.
Child's Play, Inc., sells a toy with a dangerous defect. Drew buys the toy for his son but discovers the defect before the child is injured. Drew files a suit against Child's Play. The firm's best ground for dismissal of the suit is that Drew does not have
c. standing to sue.
Lacey files a suit in Michigan against Ned over the ownership of a boat docked in a Michigan harbor. Lacey and Ned are residents of Ohio. Ned could ask for a change of venue on the ground that Ohio
d. is a more convenient location to hold the trial.
Kit loses her suit against Lou in a Minnesota state trial court. Kit appeals to the state court of appeals and loses again. Kit would appeal next to
b. the Minnesota Supreme Court.
The Idaho Supreme Court rules against Jiffy Mart in a case against Kwik Stop Stores, Inc. Jiffy Mart files an appeal with the United States Supreme Court. The Court does not hear the case. This
d. means that the Idaho court's decision is the law in Idaho.
Jason files a suit against Maybelline. If Maybelline fails to respond, Jason
c. will be awarded the remedy sought.
Liv wants to initiate a suit against Mortgage Mart Corporation by filing a complaint. The complaint should include
d. the facts showing that the court has jurisdiction.
Solar Power, Inc., files a suit against Thunder Bay Utility Company and seeks to examine certain documents in Thunder's possession. A legitimate reason for this examination is that the documents contain
a. evidence about the case.
During the trial phase of Fuel Corporation's suit against Gas Stations, Inc., their attorneys engage in voir dire. This is
d. the jury selection process.
During a trial between Laramie and Mikayla over a sale of allegedly diseased livestock, Mikayla's attorney asks questions of the plaintiff's witness Nilson. This is
a. a cross-examination.
Toppers, Inc., files a suit against Sports Cap Company. Toppers's attorney calls Renalda, the first witness, and questions her. This questioning is
b. direct examination.
Irma files a civil suit against Jim. To succeed, Irma must prove her case
b. by a preponderance of the evidence.
In Brick 'n Mortar Corporation's suit against Online Mall, Inc. (OMI), the jury re¬turns a verdict in Brick 'n Mortar's favor. OMI files a motion asking the judge to set aside the verdict and begin new proceedings. This is a mo¬tion for
c. a new trial.
In Chickenpot Cafe's suit against Dawg Carts, Inc., the jury returns a verdict in Chickenpot's favor. Chickenpot will most likely ask the court to enter
a. a judgment in accordance with the verdict.
In Midnight Motel's suit against Natural Mattress Company, the jury returns a verdict in Midnight's favor. Natural files a motion stating that even if the evi¬dence is viewed in the light most favorable to Midnight, a reasonable jury should not have found in its favor. This is a motion for
d. judgment n.o.v.
Stefani files a suit against Thomasina. The document that informs Thomasina that she is required to answer the complaint is
d. the summons.
In Phil's suit against Riley, the court issues a judgment in Riley's favor. If the case is appealed to an appropriate court of appeals, the appellate court will hear
c. none of the evidence.
The courts can decide whether the other branches of government have acted within the scope of their constitutional authority.
Minimum contacts with a jurisdiction can be sufficient to support jurisdiction over a nonresident defendant.
Federal courts have jurisdiction over any case involving citizens of different states regardless of the amount in controversy.
Concurrent jurisdiction exists when neither federal nor state courts have the power to hear a particular case.
A court cannot exercise jurisdiction over an out-of-state defendant who has only done business in the state over the Internet.
A justiciable controversy is a case in which the court's decision—the "jus¬tice" that will be served—will be controversial.
A default judgment is entered against a party who fails to respond to the allegations in a complaint.
If a discovery request involves confidential business information, the scope of the request can be limited.
Hearsay evidence is testimony about a statement made by someone who was not under oath at the time.
The Ohio state legislature passes a law to regulate local delivery serv¬ices. The final authority regarding the constitutionality of this law is
a. the judicial system.
Ginger wants to file a suit against Fred. For a court to hear the case
b. the court must have jurisdiction.
The case of Max v. National Credit Co. is heard in a trial court. The case of O! Boy! Ice Cream Co. v. Pickled Peppers, Inc., is heard in an appellate court. The difference between a trial and an appellate court is whether
a. a trial is being held.
Tyler, a citizen of Utah, files a suit in a Utah state court against Veritas Sales Corporation, a Washington state company that does business in Utah. The court has original jurisdiction, which means that
a. the case is being heard for the first time.
Rolf, a citizen of New Mexico, wants to file a suit against Sandy, a citizen of Texas, relating to a motorcycle accident in which Rolf's injuries resulted in medical costs of more than $75,000. Their diversity of citizenship may be a basis for
b. a federal court to exercise original jurisdiction.
Liu files a suit against Macro Sales, Inc., in a New Jersey state court based on a Web site through which New Jersey residents can do busi¬ness with Macro. The court will most likely exercise jurisdiction over Macro if the interactivity of the site is seen as
a. a "substantial enough" connection with the state.
3D HD TV Company, a firm in Minnesota, advertises on the Web. A court in North Dakota would be most likely to exercise jurisdiction over 3D HD if the firm
a. conducted substantial business with North Dakota residents through its Web site.
Gaudy Ornaments, Inc., sells decorative ware. Hank, who has never bought a Gaudy product, files a suit against the firm, alleging that its products are defective. The firm's best ground for dis¬missal of the suit is that Hank does not have
Mariah wins her suit against Natural Products Company. Natural's best ground for appeal is the trial court's interpretation of
d. the law that applied to the issues in the case.
Drummond wants to make a federal case out of his dispute with Elena. Federal cases originate in
b. federal district courts.
Boyd files a suit in a federal district court against Cathy. Cathy loses the suit, appeals to the U.S. Court of Appeals for the Second Circuit, and loses again. Cathy asks the United States Supreme Court to hear the case. The Court is
a. not required to hear the case.
Ulrica wants to initiate a suit against Valley Farms by filing a complaint. The complaint should include
d. the facts establishing Ulrica's basis for relief.
Beyond-the-Sea Imports, Inc., disputes the use of "beyond-the-sea.com" as a domain name by Beyond-the-Sea Overseas Exports, Ltd., and files a suit to re¬solve the dispute. Service of process must be
d. according to the rules of the court in which the suit is brought.
Loren files a suit against Mabel, alleging a failure to pay for the harvest of Mabel's orchards. Mabel denies Loren's charge and claims that Loren breached their contract to harvest a certain number of acres and owes Mabel money for the breach. Mabel's claim is
b. a counterclaim.
To prepare for a trial between Condo Development Corporation and Demo Construction Company, Condo's attorney places Demo's president under oath. An authorized court official makes a record of the attorney's questions and the officer's answers. This is
b. a deposition.
In Dawg Stop's suit against Condiment Vendor, Inc., Dawg serves a written request for Condiment to admit the truth of matters relating to the trial. Condiment's admission in response is the equivalent of
a. an admission in court.
During a trial in Gene's suit against Homer over the use of Gene's lakeside cabin, Gene's attorney asks questions of the plaintiff's witness Illya. This is
c. a direct examination.
During a trial, the attorney for Gloria the plaintiff questions her witness Heidi. Heidi, who is not an expert in the matter about which she is being asked, can
b. testify about only what she personally observed.
After a trial between OptiGames, Inc., and Play Video Corporation, the jury renders a verdict in OptiGames's favor. Play Video's attorney can file a motion
a. for a new trial.
In Recycle Cafe's suit against Sanitary Services, Inc., the court issues a judgment in Recycle's favor. The judgment can be appealed to an appropriate court of appeals by
c. Recycle or Sanitary.
Under their police powers, states can regulate private activities to protect or promote the public order, health, safety, morals, and general welfare.
The full faith and credit clause ensures that rights established under a contract in one state are honored by other states.
A state law that treats nonresidents different from residents may violate the privileges and immunities clause.
Under the U.S. Constitution, each branch of government limits some actions of the other branches.
Under the commerce clause, a state may impose a higher tax on out-of-state products shipped to in-state locations.
Preemption is a doctrine under which a state law takes precedence over a conflicting federal law.
The Bill of Rights protects individuals against various types of interfer¬ence by the government.
The courts determine when the laws restricting free speech are justified by the need to protect other rights.
A restriction on commercial speech is valid as long as it forbids only the expression of views on controversial issues.
A law that limits only some persons' exercise of a fundamental right is valid under any circumstances.
Household Furnishings, Inc., distributes its merchandise on an inter¬state basis. Under the commerce clause, Congress has the power to regulate
a. any commercial activity in the United States.
The state legislature of Kansas enacts a statute to regulate trucking that affects interstate commerce. This statute will be balanced in part in terms of
c. the state's interest in regulating the matter.
Charlie, the owner of Charlie's Foreign Auto Repair Service, files a suit against the state of Delaware, claiming that a state law violates the commerce clause. The court will agree if the statute
b. imposes a substantial burden on interstate commerce.
Congress enacts a law prohibiting toys made in China from being sold in the United States. The Hawaii state legislature enacts a law allowing the sale of Chinese-made toys. Hawaii's law will most likely be
a. rendered invalid under the supremacy clause.
A decision by the Environmental Protection Agency (EPA) on the amount of carbon that can be emitted from a car's exhaust system conflicts with a California state law. In this situation
d. the EPA's decision takes precedence.
Congress enacts the Supplemental Income Tax Act (SITA) to exempt the citizens of Louisiana from their federal taxes until New Orleans is rebuilt from the ravages of Hurricane Katrina. SITA will most likely be
c. struck down under the taxing and spending clause.
Mercy, the chief executive officer of Medico Hospital Corporation, claims that certain actions by the state of New York infringe on rights guaranteed by the Bill of Rights. Most of these rights are held to limit
b. federal and state governmental actions.
The Tourist Travelers Association wants the federal government to spend money to build a new highway. Congress can spend revenues
b. to promote any objective that it deems worthwhile.
Colorado enacts a statute that bans the distribution of anonymous politi¬cal leaflets. A court would likely hold this to be
a. an unconstitutional restriction of speech.
Energy Corporation regularly expresses opinions on political issues. Under the First Amendment, corporate political speech is given
c. significant protection.
Direct Mail Sales, Inc., regularly advertises its products. Under the First Amendment, in comparison to noncommercial speech, these ads are given
b. less protection.
The ARA will be considered valid if it directly advances a substantial government interest and
a. goes no further than necessary.
Iowa enacts a law that restricts certain kinds of advertising to protect consumers from being misled. This law would likely be held by a court to be
b. constitutional under the First Amendment.
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
d. constitutional under the First Amendment.
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
b. none of the time.
Kansas enacts a law requiring all businesses in the state to donate 10 per¬cent of their profits to Protestant churches that provide certain services to persons whose income is below the poverty level. Lo-Price Stores files a suit to block the law's enforcement. The court would likely hold that this law violates
c. the free exercise clause.
Ralph, an investigator for the Securities and Exchange Commission, goes to the offices of Trust & Worthy Accountants to inspect Trust & Worthy's clients' business records. Government inspectors generally have a right to enter business premises
a. only with a warrant.
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
d. substantive due process.
Harbor Town enacts an ordinance to allow only a few street vendors to op¬er¬ate in certain areas, for the purpose of reducing traffic. A court would likely review this ordinance under the principles of
b. the equal protection clause.
Under their police powers, states can regulate only public activities, such as political demonstrations.
National legislation governs nearly every major business activity, in¬cluding conduct that has nothing to do with commerce.
The checks and balances in the U.S. Constitution prevent any one branch of government from exercising too much power.
When there is a direct conflict between a federal and a state law, the state law is rendered invalid.
The taxing and spending clause of the U.S. Constitution has had a greater impact on business than any other clause in the Constitution.
The establishment clause of the U.S. Constitution prohibits the federal government from promoting a religion.
Procedural due process requires that any government decision to take a person's property must be made fairly.
A law that discriminates based on gender must substantially relate to an important government objective to be valid.
Law enforcement officials can track the e-mail communications of one party to find out the identities of other parties.
Enterprising Markets Coalition (EMC), a political lobbying group, wants a certain policy enacted into law. If EMC's policy conflicts with the U.S. Constitution, a law embodying it can be imposed by
d. none of the choices.
The state of New York regulates private activities to protect or promote the public or¬der, health, safety, and general welfare under its
a. police powers.
The Financial Institutions Association would like a certain law enacted, administered, interpreted, and enforced in the best interest of its mem¬bers, which include banks. Under the Constitution, Congress
d. makes the laws.
Ulrich, a citizen of Virginia, wants to enforce in the state of Washington certain rights that he has under a contract with Xtreme SnoBoards Inc. A Washington state court is most likely to enforce such rights under
c. the full faith and credit clause.
The Constitution sets out the authority and the limits of the branches of the government. The term checks and balances means that
b. each branch has some power to limit the actions of the others.
Tami's Tasty Tacos, a mobile vendor, 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 imposes a substantial burden on
b. interstate commerce.
Len, a citizen of Maryland, obtains a federal license to operate a commer¬cial fishing boat in Chesapeake
The Maryland state legislature en¬acts a law that bans all commercial fishing in the bay. The state law most likely violates
d. the supremacy clause.
Congress enacts a law that sets out a medical-device approval process for the Food and Drug Administration to follow. The law includes a preemp¬tion provision. A device that goes through the process injures Joe, who files a claim under state law to recover. The court will most likely rule that
d. the federal law preempts Joe's state law claim.
Mike, an advocate of a certain religion, publishes an article in New Times magazine insisting that Congress base all federal law on his religion's principles. The First Amendment guarantees Mike's freedom of
d. the press, speech, and religion.
The Motor Vehicle Insurance Association wants the federal government to spend money to build a new highway. Congress can spend revenues
b. to promote any objective that Congress deems worthwhile.
Beachside City enacts an ordinance that bans the distribu¬tion 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
d. unconstitutional under the First Amendment.
Reusable Energy Corporation regularly expresses opinions on political issues. Under the First Amendment, corporate political speech is
Minnesota enacts a statute to ban advertising in "bad taste." This stat¬ute would likely be held by a court to be
a. an unconstitutional restriction of speech.
Xtreme Publications, Inc., disseminates obscene materials. This is
a. a crime under nu¬merous state and federal statutes.
The police obtain a search warrant and search Errol's apartment. After yelling obscenities at the officers, Errol confesses to a crime and impli¬cates his friends. The Constitution protects against
c. unreasonable searches.
Wyoming enacts a statute that limits the liberty of all persons, including corporations, to broadcast "annoying" radio commercials. This may violate
c. substantive due process.
Parker owns and operates Rancho Mirage Corporation, a destination resort in Arizona that features horseback riding and bunkhouse accommodations. The Constitution provides that no person shall be deprived of "life, liberty, or property without due process of law." Included as "legal persons" under this clause are
b. the corporation and Parker.
Myra 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.
A Massachusetts state statute imposes a prison term, without a trial, on all street entertainers who operate in certain areas. A court would likely review this statute under the principles of
c. procedural due process.
Jon, a law enforcement official, monitors Kelsey's Internet activities—e-mail and Web site visits—to gain access to her personal financial data and student information. This may violate Kelsey's right to
State regulation, when not preempted, may regulate independently the activities that federal regulation does not cover.
By delegating some of its authority to make and implement laws, Congress violates the U.S. Constitution.
A party seeking court review of an administrative action must first exhaust all of his or her administrative remedies before seeking court review.
Final administrative rules do not have binding legal effect unless the courts later declare them to be binding.
If the meaning of a statute's language is unclear and an agency interprets it, a court must follow the interpretation as long as it is reasonable.
An administrative agency can issue a guidance document to advise the public on the agency's legal and policy position.
If a business firm refuses to comply with an agency's request to inspect facilities or business records, the agency must defer to the refusal.
Administrative agencies generally exercise substantial discretion over the type of hearing procedures that they use.
An administrative adjudicatory hearing does not have to meet the constitutional standards of due process.
All federal government agencies must make their records available electronically on the Internet.
The public must be provided with adequate advance notice of scheduled federal administrative agency meetings and agendas.
Federal agencies must consider ways to reduce the economic impact of new regulations on small businesses.
Seafood Restaurant Company pays income and other taxes collected by the Internal Revenue Service (IRS). Like other federal administrative agencies, the IRS was created by
a. Congress, through enabling legislation.
Persons who favor the creation of a federal biotech agency to regu¬late the production of genetically altered agricultural products should con¬cen¬trate their lobbying ef¬forts on
The Office of Postsecondary Education, like other federal administra¬tive agencies, is part of the government's
b. executive branch.
Congress leaves it to the Bureau of Prisons to oversee the promulgation of detailed regulations in areas under the agency's juris¬diction. This is
b. the delegation of legislative powers.
Plastix Produx Company is subject to a decision by the Consumer Product Safety Commission. Opposed to the decision, Plastix Produx wants a court to review it. First, however, the firm must use all of the potential administrative remedies. This is
c. the exhaustion doctrine.
Truck Transport Company is subject to a decision by the National Labor Relations Board. Truck Transport appeals the decision, arguing that it is arbitrary and capricious. This could mean that the decision
d. was plainly contrary to the evidence.
The Federal Highway Administration uses notice-and-comment rulemaking. This process begins with
c. the publication of a notice of proposed rulemaking.
The U.S. Department of Homeland Security issues a rule. Like the rules of other federal administrative agencies, this rule is compiled in
b. the Code of Federal Regulations.
In reviewing the actions of the U.S. Office of Nuclear Energy and other agencies, the courts
a. are usually reluctant to review questions of fact.
The Equal Employment Opportunity Commission (EEOC) orders First Financial Company to reveal certain information. First Financial complains to a court, arguing that the order is an abuse of the EEOC's discretion. Like other agencies, the EEOC can use a subpoena to
b. obtain assurances that the law is not being violated.
The U.S. Patent and Trademark Office (USPTO) wants to review certain records of Verity Corporation. The USPTO can legitimately gain access to the records through
d. Verity's consent.
Caleb is a witness in a contro¬versy involving the U.S. Drug Enforcement Administration. Caleb can be compelled to appear before an adminis¬trative law judge if he is served with
c. a subpoena.
Nursing Home Care Company is charged with violating a rule of the Social Security Administration. Most likely, Nursing Home Care will be required to appear at a hearing presided over by
c. an administrative law judge.
The U.S. Mine Safety Administration conducts searches of certain businesses. This agency and other administrative agencies can conduct warrantless searches in
b. highly regulated industries.
The Federal Emergency Management Agency (FEMA) discovers that Goodnuff Trailers, Inc., is violating a FEMA regulation. If this situation is resolved like most such disputes, the outcome will be
a. a negotiated settlement.
The functions of the Social Security Administration, like those of other adminis¬trative agencies, include
Labor Recruiters, Inc., has been ordered to appear at a hearing be¬fore an administrative law judge of the National Labor Relations Board. A significant difference between a trial and an administrative hearing is that
c. hearsay can be introduced as evidence in an administrative hearing.
Jay seeks information about Kim and other well-known businesspersons under the Freedom of Information
A failure of the Federal Bureau of Investigation to comply with a request under the Freedom of Information Act (FOIA) may be challenged in
a. a federal district court.
Closed meetings of the Office of Community Planning and Development and other federal administrative agencies are permitted when
d. all of the choices.
State regulation, when not preempted, may cover many of the same ac¬tivities as federal regulation.
Federal administrative agencies can regulate beyond the powers granted by enabling legislation.
Administrative agencies can not make legislative rules, or substantive rules, that are as legally binding as laws that the Congress passes.
A court will not review an administrative agency's decision until the case is "ripe for review."
A party can challenge an administrative regulation as so irrational as to be arbitrary and capricious.
Rulemaking—the formulation of new administrative regulations—is a major function of Congress, not administrative agencies.
The period for persons to comment on a proposed administrative rule must be at least thirty days.
If the meaning of a statute's language is unclear and an agency inter¬prets it, a court must overturn the interpretation.
Many agency rules require compliance reporting from regulated entities, and such a report can not trigger an enforcement investigation.
There are no limits to the information that an administrative agency can demand from an individual or organization.
In most instances, an agency is not required to obtain a search warrant before a physical search for evidence is conducted.
If an investigation reveals a suspected violation of an administrative rule, the agency can not issue a formal complaint against the suspected violator.
Frequently, disputes over violations of administrative rules are resolved through informal adjudication proceedings.
The federal government must disclose certain records to any person or entity on written request only if there is a rational reason for the request.
Every portion of every meeting of a federal administrative agency does not have to be open to public observation.
An agency must conduct a regulatory flexibility analysis whenever a new regulation will have an impact on a "small number of substantial entities."
Boxy's Packaging Materials Company is subject to regulations issued by the Occupational Safety and Health Administration (OSH
Like other federal administrative agencies, the OSHA was created by
a. Congress, through enabling legislation.
Independent regulatory agencies such as the Federal Trade Commission are
b. outside the major departments of the government's executive branch.
Executive control over the Federal Communications Commission, and other agencies, may be exercised through a pres¬iden¬tial veto of
a. Congress's modifications of the agency's authority.
Pure Water Company is subject to a decision by the Environmental Protection Agency. Pure Water appeals the decision, arguing that it is arbitrary and capricious. This could mean that the decision
a. changed the agency's prior policy without justification.
The Federal Aviation Administration uses notice-and-comment rulemak¬ing. The final rule in such a proceeding has binding legal effect
d. unless a court overturns it.
To notify the public of a proposed rule, the Food Safety and Inspection Service, like other federal agencies, publishes the proposal in
c. the Federal Register.
The Securities and Exchange Commission decides to create a new rule relating to the dissemination of material nonpublic information through corporate blogs, tweets, and Web sites. The first step is to
c. publish a notice of the proposed rulemaking.
Before adopting new regulations to govern Internet-based phone serv¬ices, the Federal Communications Commission may not
b. ignore the Administrative Procedure Act to streamline proceedings.
The Federal Aviation Administration uses notice-and-comment rulemak¬ing. The final rule in such a proceeding is sometimes referred to as
a. a legislative rule.
The Merit Systems Protection Board issues a rule. Like other adminis¬tra¬tive agencies' "legislative rules," this rule is as
a. binding as a law passed by Congress.
The U.S. Fish and Wildlife Service uses notice-and-comment rulemak¬ing. This involves a period during which
d. the public is asked to comment on a proposed rule.
After notice-and-comment rulemaking, the U.S. Bureau of Land Management (BLM) issues a new rule and applies it to Clearcut Timber Company. Clearcut appeals the application to a federal court. The court will most likely defer to the BLM's interpretation of
a. the facts and the law.
The Federal Trade Commission (FTC) orders GR8 Steaks Company to re¬veal certain information. GR8 Steaks complains to a court, arguing that the order is an abuse of the FTC's discretion. Like other agencies, the FTC can use a subpoena to
d. reveal violations of the law.
The Consumer Product Safety Commission (CPSC) wants Monster Toy Company to produce certain records for review. To obtain the records, the CPSC will issue
d. a subpoena.
The Internal Revenue Service (IRS) wants to seize certain documents of Mortgage Bank, Inc. Deciding whether it is permissible for the IRS to request or seize the documents depends on whether the docu¬ments are
The Food and Drug Administration (FDA) is investigating reports that Caplets Pharmaceutical Corporation is putting potentially harmful ad¬di¬tives in Doze, a new pain-relief medication. The FDA's demands for particular documents from Caplets
c. must be general so as to force an uncooperative party's compliance.
The Nuclear Regulatory Commission (NRC) files a complaint against General Construction Corporation (GCC). GCC may want to set¬tle the dispute, before formal adjudicatory proceedings be¬gin, to avoid
a. appearing uncooperative.
Guard Personnel Company is charged hiring practices that do not meet requirements set by the Transportation Safety Administration (TS
The administra¬tive law judge or¬ders Guard to comply with the TSA's regulations. Guard may
a. appeal to the commission that governs the TSa.
With some exceptions, every portion of every meeting of the Federal Reserve System Board of Governors and other federal administrative agencies must be open to public observation under
c. the Government-in-the-Sunshine
The Regulatory Flexibility Act has helped reduce record-keeping bur¬dens for Hometown Gas Company and other small business firms in the area of
c. hazardous waste management.
A defendant may be relieved of liability by showing that a criminal act was necessary to prevent an even greater harm.
The purpose of the exclusionary rule is to encourage criminals to provide exclusive evidence of their crimes.
Any crime that requires knowledge of computer technology for its investigation is a computer crime.
Gail is a "payday" lender charged with filing
False claims in bankruptcy proceedings against her debtors. The standard of proof to find a defendant who has been charged with a crime guilty is
#c. beyond a reasonable doubt.
Domino causes a disturbance at El Nino Cafe. He is arrested and charged with disorderly conduct, a misdemeanor. A misdemeanor is a crime punish¬able by
b. imprisonment up to one year.
Plato works for Quirky Squirters, Inc. During work hours, Plato "steals" his employer's computer time to start up his own business, Rowdy Drenchers. This is
Rock pushes Sylvia to the ground, grabbing her purse as she falls. The use of force or fear is required for this act to constitute
Sven receives an MP3 player stolen from Tomas. To be criminally liable, Sven must know
a. the player is stolen.
Riley, a Sterling Bank employee, deposits into his account checks that are given to him by bank customers to deposit into their accounts. This is
Mona offers Ned, a building inspector, money to overlook the violations in her new warehouse. Ned accepts the money and overlooks the viola¬tions. Mona is charged with the crime of bribery. The crime occurred when
b. Mona offered the bribe.
Cameron manages an illegal gambling operation in his BBQ Bar & Grill. Cameron reports the profits of the gambling operation as income from BBQ's legitimate activities on its tax returns. This is
c. money laundering.
Davis points a gun at Eton, threatening to shoot him if he does not steal from his employer, Freddy's Convenience Store, and give the stolen funds to Davis. Charged with theft, Eton can successfully claim, as a defense
Vance points a gun at Workman, threatening to shoot him. Workman hits Vance, causing his death. Charged with homicide, Workman can successfully claim as a defense
Ollie, an employee of Payroll Management Corporation, is arrested at work. A grand jury issues a formal charge against Ollie for larceny. This charge is
b. an indictment.
Jean sends e-mail to Irwin promising a percentage of the amount in an African bank account for assistance in transferring the funds to a U.S. bank account. Irwin forwards his account number, but the funds are never sent. Instead, Jean quickly withdraws the funds in Irwin's account. This is
d. online frau#d.
Harvey puts up a guitar for bids on eWay, a Web auction site. Faith makes the highest bid and sends the payment, which Harvey receives, but he does not send the guitar to her. This is online
a. auction fraud.
Posing as Platinum Bank, Oswald e-mails Nadia, asking her to update her personal banking information through a link in the e-mail. She clicks on the link and types in the data, which Oswald promptly sells to Moe. This is
Posing as a representative of Global Games Company, Ferris e-mails Evan, a job seeker, asking him to forward personal banking information so that if he is hired, payroll checks can be deposited directly into his account. Evan supplies the data, which Ferris promptly sells to Dixie. This is
b. employment fraud.
Fact Pattern 7-1A (Questions A17-A18 apply)
Minka uses her computer to secretly install software on hundreds of personal computers without their owners' knowledge.
Refer to Fact Pattern 7-1A. Minka's secretly installed software allows her to forward transmissions from her unauthorized network to even more systems. This network is
c. a botnet.
Refer to Fact Pattern 7-1A. Minka's software is harmful to the computers on which she installed it. This program is
Via the Internet, Rocky sabotages the computer system of Quik Chik'n Company, a food manufacturer, with the purpose of altering the levels of ingredients of the company's products so that consumers of the food become ill. Rocky is
a. a cyberterrorist.
Rashad accesses Quant Company's computer system without authority to obtain protected financial data. Under federal law, this is
a. a felony if it is committed for a commercial purpose.
The crime of theft does not require that the perpetrator know whatever is taken belonged to another.
Any crime that requires knowledge of computer technology for its perpe¬tration is a computer crime.
Because embezzlement is considered a white-collar crime, it cannot be considered a computer crime.
Smitty, driving while intoxicated, causes a car accident that results in the death of Tiffany. Smitty is arrested and charged with a felony. A fel¬ony is a crime punishable by death or imprisonment for
b. more than one year.
Biff wrongfully takes an unopened carton from a Cold Storage Warehouse loading dock, puts the carton in his car, and drives away. This is
Desi reaches into Edna's pocket and takes her money, without her consent and without her immediate awareness. Unlike robbery, picking pockets does not involve
b. force or fear.
On the orders of their corporate employer, Della and Efron, employees of Fabulous Fashionista, a clothing store, switch trademarks on clothing that comes into the store to be sold to consumers. This is most likely
Ludwig receives from Milo a marimba stolen from Nadine. To be crimi¬nally liable, Ludwig must know
c. the marimba is stolen.
Val, the owner of Wild Wheels, a bicycle store, trusts Xavier to manage the store's daily cash flow. One night, without Val's knowledge or con¬sent, Xavier takes and keeps $500 from the receipts. This is most likely
In relation to Edie's solicitation of investors in a nonexistent business, she is charged with "mail fraud." This requires, among other things,
d. mailing or causing someone else to mail a writing.
Ilise, an employee of Pyro Displays, Inc., pays Gavin, an employee of Pyro's competi¬tor Fire Worx Company, for a secret Fire Worx pricing schedule. This may be
b. commercial bribery.
Page points a knife at Ray's daughter, threatening to hold her hostage and "cut" her unless Ray takes a certain file from Skelter Supplies Corporation, his employer. Charged with theft, Ray can successfully claim as a defense
Ethan, the president of Financial Investments, Inc. (FII), and Gina, FII's account¬ant, are charged with a crime, after the police search FII's of¬fices. Under the exclusionary rule
c. illegally obtained evidence must be excluded from a trial.
Jesse arrests Imelda on suspicion of embezzlement. According to the United States Supreme Court in Case 9.3, Miranda v. Arizona, Imelda must be apprised of certain of her rights
d. prior to any questioning.
Mike is arrested at a warehouse in North Industrial Park. A government prosecutor issues a formal charge against Mike for receiving stolen property. This charge is
c. an information.
Swinborn sells "Tyger" steroids over the Internet. He is arrested and charged with the sale of a controlled substance. This is cyber crime, which is
b. a crime that occurs in the virtual community of the Internet.
Travis sends Ursula a link to a purported e-birthday card that when clicked on downloads software to her computer to record her keystrokes and send the data to Travis. He uses the data to obtain her personal in¬formation and access her financial resources. This is
a. identity theft.
Posing as Sterling Bank, Roxanne e-mails Quentin, asking him to update his personal banking information by calling a certain phone number. He makes the call and supplies the data, which Roxanne promptly sells to Porcio. This is
Omar sends Nell an e-mail ad touting software that will cloak its user in "the anonymity of the Internet." Nell pays Omar for the software, which is never delivered to her. This is online
c. retail fraud.
Jared uses his computer to secretly install software on thousands of per¬sonal computers without their owners' knowledge. The program can re¬produce itself and spread from one computer to another via any USB port. This program is
d. a worm.
Boris programs software to prompt a computer to continually crash and reboot. Boris's goal is to install this program on various companies' com¬puter systems without the companies' knowledge. The program can re¬produce itself, but must be attached to a host file to travel from one com¬puter network to another. This program is
c. a virus.