Business Law Test #2

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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.

d) none of the choices.

Under the Constitution, Congress:

a) makes the laws.
b) administers the laws.
c) enforces the laws.
d) interprets the laws.

a) makes the laws.

Savers Mart, Inc., distributes its merchandise to retail outlets on an inter-state basis. Under the commerce clause, Congress has the power to regulate:

a) any commercial activity in the United States.
b) only activities that are in intrastate commerce.
c) only activities that are in local commerce.
d) only activities that are not in commerce.

a) any commercial activity in the United States.

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

a) balanced in terms of the burden on Iowa against the merit and purpose of interstate commerce.

b) balanced in terms of Iowa's interest in regulating a certain matter against the burden placed on interstate commerce.

c) struck down.
d) upheld.

b) balanced in terms of Iowa's interest in regulating a certain matter against the burden placed on interstate commerce.

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.

b) imposes a substantial burden on interstate commerce.

Levi, a citizen of Maryland, obtains a federal license to operate a commercial fishing boat in Chesapeake Bay. The Maryland state legislature enacts a law that bans all commercial fishing in the bay. The state law most likely violates:

a) no provision in the U.S. Constitution.
b) the commerce clause.
c) the due process clause.
d) the supremacy clause.

d) the supremacy clause.

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:

a) religion only.
b) speech only.
c) the press only.
d) religion, speech, and the press.

d) religion, speech, and the press.

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 embod¬ies a series of protections for Dru against types of interference by:

a) FFC and its other competitors only.
b) Greg, Huey, and other private individuals only.
c) the government only.
d) FFC, Greg, Huey, others, and the government.

c) the government only.

Bailey, the president of Carmichael Commodities Company, claims that certain actions by the federal government and by the state of Delaware infringe on rights guaranteed by the U.S. Constitution Bill of Rights. All of these rights limit actions by:

a) neither Delaware nor the federal government.
b) the federal government only.
c) Delaware and the federal government.
d) Delaware only.

b) the federal government only.

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.

b) constitutional under the First Amendment.

Congress enacts the Tight Money Act (TMA) of 2010 to ban "major business entities" from making political contributions that individuals can make. A court would likely hold the TMA 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.

a) an unconstitutional restriction of speech.

Beachside City enacts an ordinance that bans the distribution of all printed materials on city streets. Carl opposes the city's latest tax increase 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.

a) an unconstitutional restriction of speech.

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.

b) constitutional under the First Amendment.

Cordial Drinks, Inc., markets alcoholic beverages. A federal regulation bans the disclosure of the alcohol content of liquor on Cordial's labels and those of other marketers. A court would likely hold this regulation 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.

a) an unconstitutional restriction of speech.

In 2010, Congress enacts the Act to Restrict Commercial Speech (ARCS). The ARCS will be considered valid:

a) under any circumstances.
b) under no circumstances.
c) if it directly advances a substantial government interest but goes no further than necessary.
d) if it directly advances a substantial government interest regardless of how "far" it goes.

c) if it directly advances a substantial government interest but goes no further than necessary.

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.

d) constitutional under the First Amendment.

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) equal protection of the law.
b) privacy.
c) procedural due process.
d) substantive due process.

d) substantive due process.

Oklahoma 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. PriceLess Stores files a suit to block the law's enforcement. The court would likely hold that this law violates:

a) no clause in the U.S. Constitution.
b) the establishment clause.
c) the free exercise clause.
d) the supremacy clause.

c) the free exercise clause.

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.

b) the content of the statute.

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.

a) procedures used in making decisions to take life, liberty, or property.

Louis—larger and stronger than Mica—threatens to hit Mica before hitting and injuring him. Mica files a suit against Louis for assault and battery. Mica will most likely recover for:

a) assault and battery.
b) assault but not battery.
c) battery but not assault.
d) neither assault nor battery.

a) assault and battery.

Macy distributes a handbill among her neighbors accusing one of them—Ked—of being a convicted sex offender. The statement is defamatory only if:

a) a neighbor repeats it.
b) Ked suffers emotional distress.
c) the statement is true.
d) the statement is false.

d) the statement is false.

Glen falsely accuses Hu of stealing from Island Tours, Inc., their employer. Glen's statement is defamatory only if::

a) a third party hears it.
b) Hu has not been caught.
c) the statement is puffery.
d) the statement is true.

a) a third party hears it.

Kai files a suit against Lana based on one of Lana's statements that Kai alleges is fraudulent. To give rise to fraud, the statement must be one of:

a) emotion.
b) fact.
c) illusion.
d) opinion.

b) fact.

Dom, an EZ Baked Goods salesperson, follows Flora, a salesperson for Goody Pastries, Inc., as she attempts to make sales to food stores. Dom solicits each of Flora's customers. Dom is most likely liable for wrongful interference with:

a) a bargaining relationship.
b) a business relationship.
c) a contractual relationship.
d) a customer relationship.

b) a business relationship.

OK Dry-Cleaning advertises so effectively that the regular customers of its competitor Purity Cleaners patronize OK instead of Purity. This is:

a) appropriation.
b) conversion.
c) intentional infliction of emotional distress.
d) none of the choices.

d) none of the choices.

Joy invites Ken into her apartment. Ken commits trespass to land if he:

a) enters the apartment with fraudulent intent.
b) harms the apartment in any way.
c) makes disparaging remarks about Joy to others.
d) refuses to leave when Joy asks him to go.

d) refuses to leave when Joy asks him to go.

As a joke, Jem takes Kyla's business law textbook and hides it so that Kyla cannot find it during the week before the exam. Jem may have committed:

a) trespass to personal property.
b) appropriation.
c) conversion.
d) intentional infliction of emotional distress.

a) trespass to personal property.

In newspaper ads, Lo-Price Autos falsely accuses My-T Value Vehicles, a competitor, of selling stolen cars. My-T's sales decrease. Lo-Price has most likely committed:

a) slander of quality.
b) slander of title.
c) wrongful interference with a business relationship.
d) none of the choices.

b) slander of title.

Bette backs out of City Parking Garage, colliding with Dill's car. Dill may recover $7,500 to cover the cost of the repairs if Bette failed to act as:

a) a blameless person.
b) a faultless person.
c) a reasonable person.
d) a reliable person.

c) a reasonable person.

Cook's Pantry Appliances, a retail store, must use reasonable care on its premises to warn its patrons of:

a) all risks.
b) hidden risks.
c) obvious risks.
d) no risks.

b) hidden risks.

Reaching for a bottle of soda from a display in a Bargain Mart store, Cody slips in a puddle of spilled soda and falls, suffering an injury. Bargain Mart's employees are not aware of the spilled soda until Cody falls. In a suit against Bargain Mart, Cody will most likely:

a) lose, because Bargain Mart's employees were not aware of the spill.
b) lose, because Cody should have exercised more care.
c) win, because Bargain Mart can recover from the soda bottler.
d) win, because the spilled soda was foreseeable.

d) win, because the spilled soda was foreseeable.

Leon files a suit against Moira, a medical doctor, alleging negligence. As a physician, Moira is held to the standard of:

a) a blameless individual.
b) a faultless ordinary person.
c) a reasonable physician.
d) a reliable professional.

c) a reasonable physician.

Caleb is driving a car in which Dotty is a passenger when an accident occurs. Caleb and Dotty are emotionally rattled, but neither is physically hurt. Caleb is not liable to Dotty on a negligence theory because:

a) both parties were emotionally rattled.
b) Caleb did not apparently intend to cause an accident.
c) Dotty must have been comparatively negligent.
d) Dotty was not injured.

d) Dotty was not injured.

Ralph, a van driver for Speedy Delivery Company, causes a multi-vehicle accident on a city street. Ralph and Speedy are liable to:

a) all those who were injured.
b) only those who were uninsured.
c) only those whose injuries could have been reasonably foreseen.
d) only those whose vehicles were closest to Ralph's van.

c) only those whose injuries could have been reasonably foreseen.

Liu enters Mountain Triathlon, an athletic competition in which Liu has never competed. Regarding the risk of injury, Liu assumes the risks:

a) attributable to the Triathlon in any way.
b) different from the risks normally associated with the Triathlon.
c) greater than the risks normally associated with the Triathlon.
d) normally associated with the Triathlon.

d) normally associated with the Triathlon.

Nico is a passenger in a car driven by Owen, whose negligence causes an accident, injuring himself. Nico, uninjured, accompanies Owen to Parkside Hospital in an ambulance. The ambulance is hit by a car driven by Quin, injuring Nico. Nico files a suit against Owen, whose best defense is:
:
a) assumption of risk.
b) contributory negligence.
c) negligence per se.
d) superseding cause.

d) superseding cause.

Frank slips and falls on Guy's Harbor Tour Boat and is injured. Frank files a suit against Guy's for $500,000. If Frank is 20 percent at fault and Guy's is 80 percent, under the "50 percent rule" comparative neg¬ligence principles, Frank would recover:

a) $0.
b) $250,000.
c) $400,000.
d) $500,000.

c) $400,000.

George has a badly infected right foot. Herb, George's physician, prescribes amputation. George agrees. During the operation, Herb amputates the left foot. In George's suit against Herb, George's best theory for recovery is:

a) assumption of risk.
b) negligence per se.
c) res ipsa loquitur.
d) strict liability.

c) res ipsa loquitur.

Oakley posts a defamatory remark about Pierre in "Roominate," an online social network maintained by SocNet, Inc., an Internet service provider. Most likely to be held liable for the remark is:

a) Oakley.
b) Roominate.
c) SocNet.
d) Oakley & SocNet.

a) Oakley.

Moby, a resident of New Jersey, has an accident with Ogden, a resident of New York, while driving through that state. Ogden files a suit against Moby in New York. Regarding Moby, New York has:

a) federal question jurisdiction.
b) in personam jurisdiction.
c) in rem jurisdiction.
d) no jurisdiction.

b) in personam jurisdiction.

Hua, a resident of Illinois, owns a warehouse in Indiana. A dispute arises over the ownership of the warehouse with Jac, a resident of Kentucky. Jac files a suit against Hua in Indiana. Regarding this suit, Indiana has:

a) federal question jurisdiction.
b) in personam jurisdiction.
c) in rem jurisdiction.
d) no jurisdiction.

c) in rem jurisdiction.

Jo files a suit against Lara in a Missouri state court. Lara's only connection to Missouri is an ad on the Web originating in Nebraska. For Missouri to exercise jurisdiction, the issue

a) a commercial cyber presence in Missouri.
b) conducted substantial business with Missouri residents.
c) general maximum contact with Missouri.
d) solicited virtual business in Missouri.

b) conducted substantial business with Missouri residents

Lora files a suit in Michigan against Ned over the ownership of a boat docked in a Michigan harbor. Lora and Ned are residents of Ohio. Ned could ask for a change of venue on the ground that Ohio:

a) has a sufficient stake in the matter.
b) has jurisdiction.
c) has sufficient minimum contacts with the parties.
d) is a more convenient location to hold the trial.

d) is a more convenient location to hold the trial.

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:
:
a) is a decision on the merits with value as a precedent.
b) indicates agreement with the Idaho court's decision.
c) means nothing.
d) means that the Idaho court's decision is the law in Idaho.

d) means that the Idaho court's decision is the law in Idaho.

Emil wants to initiate a suit against Fast Credit Company by filing a complaint. The complaint should include:

a) an explanation of the proof to be offered at trial.
b) a motion for judgment n.o.v.
c) a motion for judgment on the pleadings.
d) a statement of the grounds for the court to exercise jurisdiction.

d) a statement of the grounds for the court to exercise jurisdiction.

Lynn files a suit against Karl. Karl denies Lynn's charges and sets forth his own claim that Lynn breached their contract and owes Karl money for the breach. This is:

a) a counterclaim.
b) a crosclaim.
c) an affirmative defense.
d) an irrelevant response.

a) a counterclaim.

To prepare for a trial between Large Lots Development Corporation (LLDC) and MiniMansion Construction Company (MMCC), MMCC's attorney places LLDC's president under oath. A court reporter makes a record of the attorney's questions and the officer's answers. This is:

a) a cross-examination.
b) a deposition.
c) an imposition.
d) an interrogatory.

b) a deposition.

During the trial phase of Fuel Corporation's suit against Gas Stations, Inc., their attorneys engage in voir dire. This is:
Question options:
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) the selection of jurors.

In Fancy Frills Corporation's suit against Glamour Stores, Inc., the jury re-turns a verdict in Fancy's favor. Glamour files a motion asking the judge to set aside the verdict and begin new proceedings. This is a mo¬tion for:
Question options:
a) a judgment in accordance with the verdict.
b) a judgment on the pleadings.
c) a new trial.
d) judgment n.o.v.

c) a new trial

In Restful Motel's suit against Sleepy Hotels, Inc., the jury returns a verdict in Restful's favor. Sleepy files a motion stating that even if the evi¬dence is viewed in the light most favorable to Restful, a reasonable jury should not have found in its favor. This is a motion for:
Question options:
a) a judgment in accordance with the verdict.
b) a judgment on the pleadings.
c) a new trial.
d) judgment n.o.v.

d) judgment n.o.v.

Edie files a suit against Frank. If this suit is like most cases, it will be:
Question options:
dismissed during a trial.
dismissed or settled before a trial.
resolved only after a trial.
settled at a trial.

dismissed or settled before a trial.

Betty files a suit against Carl. Before going to trial, the parties meet, with their attorneys to represent them, to try to resolve their dispute without involving a third party. This is:
Question options:
arbitration.
litigation.
mediation.
negotiation.

negotiation.

Sid files a suit against Tina. Before going to trial, the parties, with their at-torneys, meet to try to resolve their dispute. A third party helps them to reach an agreement. This is:
Question options:
arbitration.
litigation.
mediation.
negotiation.

mediation.

Jim files a suit against Kay. Before going to trial, the parties meet, with their attorneys to represent them, to present their dispute to a third party who is not a judge but who renders a legally binding decision. This is:
Question options:
arbitration.
litigation.
mediation.
negotiation.

arbitration.

Java Cafes, Inc., and Kaffe Import Corporation dispute a term in their contract. The least expensive method to resolve the dispute between Java and Kaffe may be:
Question options:
arbitration because the case will be heard by a mini-jury.
litigation because each party will pay its own legal fees.
mediation because the dispute will be resolved by a non-expert.
negotiation because no third parties are needed.

negotiation because no third parties are needed.

Java Cafes, Inc., and Kaffe Import Corporation dispute a term in their contract. If Java and Kaffe have a long-standing business relationship that they would like to continue, a preferred method of set¬tling their dispute may be mediation because:
Question options:
the case will be heard by a mini-jury.
the dispute will eventually go to trial.
the process is not adversarial.
the resolution of the dispute will be decided an expert.

the process is not adversarial.

Java Cafes, Inc., and Kaffe Import Corporation dispute a term in their contract. Resolving the dispute between Java and Kaffe by having a neutral third party render a binding decision is one of the ad¬van¬tages of:
Question options:
arbitration.
conciliation.
intervention.
mediation.

arbitration.

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