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Business Law - Test Review
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Attempt History Attempt Time Score
LATEST Attempt 1 70 minutes 48 out of 50
TEST ONE
Due Sep 26 at 5pm Points 50 Questions 50 Available Sep 22 at 8am Sep 26 at 5pm 4 days Time Limit 125 Minutes
Instructions
Correct answers will be available on Sep 26 at 5pm.
Score for this quiz: 48 out of 50Submitted Sep 26 at 12:09pmThis attempt took 70 minutes.
Read questions and answers carefully. Be sure that you understand the question before answering. I have found that a large number of missed questions result from failure to readcarefully,
You are looking for the best answer and not one that is absolutely correct with no exceptions.
1 / 1 ptsQuestion 1
U.S. district courts have concurrent jurisdiction with state courts in matters involving federal questions.
True
False
1 / 1 ptsQuestion 2
As a judge in a federal court, Christine can decide, among other things, whether the laws or actions of the executive and legislativebranches are constitutional. The process for making this determination is known as
judicial review.
early neutral case evaluation.
jurisdiction.
venue.
1 / 1 ptsQuestion 3
A Maryland state court can exercise jurisdiction over National Insurance Corporation, an outofstate company, if the firm has
no contacts with the state.
medium contacts with the state.
maximum contacts with the state.
minimum contacts with the state.
1 / 1 ptsQuestion 4
Fresh Harvest Company, which is based on Georgia, packages and sells vegetables. Hayden, who is a resident of Indiana, buys a FreshHarvest product, eats it, and suffers severe food poisoning. Hayden wants to file a suit against Fresh Harvest. The diversity of citizenshipbetween these parties means that
no court has jurisdiction.
federal courts have exclusive jurisdiction.
state courts have exclusive jurisdiction.
federal and state courts have concurrent jurisdiction.
1 / 1 ptsQuestion 5
Arnold loses his suit against Buffy in a Colorado state trial court. Arnold appeals to a state intermediate court of appeals and loses again.Arnold would appeal next to
the Colorado Supreme Court.
the U.S. Court of Appeals for the Ninth Circuit.
a U.S. district court.
the United States Supreme Court.
1 / 1 ptsQuestion 6
The Iowa Supreme Court rules against Jennifer in a case against KutRate Stores, Inc. Jennifer wants to appeal her case to the UnitedStates Supreme Court. She must ask the Court to issue a writ of
appeal.
summons.
jurisdiction.
certiorari.
1 / 1 ptsQuestion 7
Lyn files a suit against Karl. Karl denies Lyn's charges and sets forth his own claim that Lyn breached their contract and owes Karl moneyfor the breach. Karl's claim is
motion for summary judgment.
motion for judgment on the pleadings.
counterclaim.
motion to dismiss.
1 / 1 ptsQuestion 8
In Hazel's suit against Ingrid, the court issues a judgment in Ingrid's favor. If the case is appealed to an appropriate court of appeals, theappellate court will hear
select pieces of evidence.
most of the evidence.
all of the evidence.
none of the evidence.
1 / 1 ptsQuestion 9
A provision in the California state constitution conflicts with a provision in the U.S. Constitution. If challenged
the provisions will be balanced to reach a compromise.
the U.S. Constitution, not the state provision, will be enforced.
neither provision will be enforced.
the state provision, not the U.S. Constitution, will be enforced.
1 / 1 ptsQuestion 10
Charles is a federal judge whose judicial decisions are part of case law, which does not include interpretations of
statutes enacted by legislatures.
constitutional provisions.
regulations created by administrative agencies.
sound bites in the media.
1 / 1 ptsQuestion 11
Much of American law is based on
the French legal system.
ancient Chinese law.
the English legal system.
Greek civil law.
1 / 1 ptsQuestion 12
Jane enters into a contract with Jill to provide 100 roses for a dinner party. Jill fails to deliver the roses. Jane initiates a suit against Jill,asking the court to order Jill to refund Jane's payment. Jane is
the persuasive authority.
the binding authority.
the defendant.
the plaintiff.
1 / 1 ptsQuestion 13
Karen is a judge hearing the case of Local Dispatch Co. v. National Transport Corp. Applying the relevant rule of law to the facts of thecase requires Karen to find cases on point—previously decided cases that, in relation to the case under consideration, are
at odds.
as different as possible.
as similar as possible.
exactly identical.
1 / 1 ptsQuestion 14
Beth is a victim of Carl's violation of a criminal law. Criminal law is concerned with
the prosecution of private individuals by other private individuals.
the relief available when a person's rights are violated.
the prosecution of public officials by private individuals.
wrongs committed against the public as a whole.
1 / 1 ptsQuestion 15
Donatello files a suit against Erasmus. Before going to trial, the parties meet, with their attorneys to represent them, to try to resolve theirdispute without the involvement of a third party. This is
not a legitimate form of dispute resolution.
negotiation.
mediation.
arbitration.
1 / 1 ptsQuestion 16
The least expensive method of resolving a dispute between Ronald and Sharon may be
negotiation because no third parties are needed.
arbitration because the case will be heard by a minijury.
mediation because the dispute will be resolved by a nonexpert.
litigation because each party will pay its own legal fees.
1 / 1 ptsQuestion 17
EZ Assembly, Inc., and Factory Outlet Stores have their dispute resolved in arbitration. The arbitrator makes a mistake in a conclusion oflaw. This is a ground for a court to
set aside the award.
do nothing.
review the sufficiency of the evidence.
review the merits of the dispute.
1 / 1 ptsQuestion 18
Service Employees International Union and Timberline Products, Inc., have their dispute resolved in arbitration. The arbitrator arbitratesissues that the parties did not agree to submit to arbitration. This is a ground for a court to
none of the choices.
review the sufficiency of the evidence.
set aside the award.
review the merits of the dispute.
1 / 1 ptsQuestion 19
To resolve a dispute, Ripley in South Dakota and Tyler in Utah utilize Virtual Solution, a nonbinding online dispute resolution (ODR)service. This limits these parties' recourse to the courts
not at all.
until the ODR service has issued a decision.
with respect to this dispute only.
with respect to any dispute arising between them.
1 / 1 ptsQuestion 20
A clause in a contract between Tall Timber Corporation, a U.S. firm, and Wang Woods, Ltd., a Japanese firm, specifies that disputes overthe contract will be adjudicated in the United States. This is
an arbitration clause.
an adjudication clause.
a forumselection clause.
a domesticdispute clause.
1 / 1 ptsQuestion 21
Dyan, the owner of Expert Restoration Services, Inc., adheres to the "principle of rights" theory. Under this theory, a key factor indetermining whether a business decision is ethical is how that decision
effects consequences that would follow if everyone in society acted the same way.
compares to religious principles.
supports the right to make a profit.
affects the rights of others.
1 / 1 ptsQuestion 22
Palette Paints, Inc. expends funds and takes steps to ensure that all employees are safe on the job, that all products are safe for consumers,and that the environmental impact of the corporation is minimal. Palette Paints appears to believe in the concept of
"grey areas" in the law.
government oversight.
corporate social responsibility.
the moral minimum.
1 / 1 ptsQuestion 23
GetTogether, A Social Media Company encourages its managers to behave ethically, reasoning that lowerlevel employees will take theircues from management. One of the most important ways to create and maintain an ethical workplace is for GetTogether's management to
look the other way when an employee engages in an unethical act.
discreetly engage in unethical or illegal acts.
direct employees to "do as we say, not as we do."
demonstrate a commitment to ethical decision making.
1 / 1 ptsQuestion 24
Lowell runs Medical Debt Collection Agency. He collects debts by misrepresenting the facts and pretending to be licensed to performvarious occupations. Lowell's conduct most likely warrants
an injunction plus other sanctions.
an admonition for unethical behavior but no other sanctions.
no sanctions but no praise.
praise for the aggressive approach to collecting debts.
1 / 1 ptsQuestion 25
A statute enacted by the Arizona state legislature to regulate trucking affects interstate commerce. In evaluating this statute, the courts willbalance the burden that it imposes on interstate commerce against
the courts' authority to determine that a law is unconstitutional.
the statute's impact on noneconomic activity.
the state's interest in regulating the matter.
the purpose of interstate commerce.
1 / 1 ptsQuestion 26
Mariah creates a tshirt design that expresses support for Nathan, a presidential candidate, and distributes tshirts imprinted with thedesign to her friends. The tshirts are an example of
unprotected speech.
illegal speech.
symbolic speech.
controlled speech.
1 / 1 ptsQuestion 27
Port Harbor City enacts an ordinance that bans the distribution of all printed materials on city streets. Later, Quint protests a new
"revenueenhancing" measure also enacted by the city by distributing handbills. When Quint is charged with violating the printedmaterials ban, he files a suit against the city. Most likely, the court will hold that the ban is
justified by the need to protect individual rights.
constitutional under the First Amendment.
an unconstitutional restriction of speech.
necessary to protect national interests.
1 / 1 ptsQuestion 28
Congress enacts the Ad Restriction Act (ARA) to limit advertising in certain circumstances. The ARA will be considered valid if itdirectly advances a substantial government interest
without regard to how "far" it goes.
and goes further than necessary to ensure full coverage.
and goes no further than necessary to achieve its purpose.
and the parties affected by it can elect how "far" to go in applying it.
1 / 1 ptsQuestion 29
Utah enacts a law that restricts certain kinds of advertising to protect consumers from being misled. This law would likely be held by acourt to be
an unconstitutional restriction of speech.
constitutional under the First Amendment.
necessary to protect state interests.
justified by the need to protect individual rights.
1 / 1 ptsQuestion 30
Oklahoma enacts a law requiring all businesses in the state to donate 10 percent of their profits to Protestant churches that provide certainservices to persons whose income is below the poverty level. PriceLo Mart files a suit to block the law's enforcement. The court wouldlikely hold that this law violates
the free exercise clause.
the establishment clause.
the supremacy clause.
no clause in the U.S. Constitution.
1 / 1 ptsQuestion 31
Keralyn creates a Web site to post threatening messages about celebrities. The First Amendment protects such speech
only if it is symbolic.
only if it is noncommercial.
none of the time.
all of the time.
1 / 1 ptsQuestion 32
Jon, a law enforcement official, monitors Kelsey's Internet activities—email and Web site visits—to gain access to her personal financialdata and student information. This may violate Kelsey's right to
procedural due process.
equal protection of the law.
substantive due process.
privacy.
1 / 1 ptsQuestion 33
Information Security Inc. pays income and other taxes collected by the Internal Revenue Service (IRS). Like other federal administrativeagencies, the IRS was created by
Congress, through enabling legislation.
the courts, through the adjudicatory process.
the U.S. Constitution, in Article I, Section 8.
the president, through an executive order.
0 / 1 ptsQuestion 34Incorrect
Grid Tools & Hardware Company is subject to a decision by the Consumer Product Safety Commission. Opposed to the decision, GridTools wants a court to review it. First, however, the firm must use all of the potential administrative remedies. This is
an actual controversy at issue.
the ripeness doctrine.
the exhaustion doctrine.
standing to sue.
1 / 1 ptsQuestion 35
To notify the public of a proposed rule, the U.S. Office of LaborManagement Standards, like other federal agencies, publishes theproposal in
the United States Code.
the Federal Register.
the Code of Federal Regulations.
the Administrative Procedure Act.
1 / 1 ptsQuestion 36
Armando is a witness in a controversy involving the U.S. Bureau of Tobacco and Firearms. Armando can be compelled to appear beforean administrative law judge if he is served with
an order for specific performance.
a search warrant.
a subpoena.
an executive order.
1 / 1 ptsQuestion 37
The U.S. Fish and Wildlife Service discovers that Grosse Farm Fisheries, Inc. has violated a federal regulation. If no negotiated settlementcan be reached, the agency will most likely
do nothing.
issue a formal complaint against Grosse Farm.
file a petition with the U.S. Supreme Court.
impose immediate sanctions on Grosse Farm.
1 / 1 ptsQuestion 38
The U.S. Small Business Administration issues a new regulation that will have a significant impact on a substantial number of smallbusinesses. Under the Regulatory Flexibility Act, the agency must do all of the following except
adjust the rule to the satisfaction of the regulated businesses.
consider less burdensome alternatives.
measure the cost that the rule will impose on small businesses.
conduct a regulatory flexibility analysis.
1 / 1 ptsQuestion 39
Kimberly, the owner of Littleton Cinema, trusts Max to manage the theater's daily cash flow. One night, without Kimberly's knowledge orconsent, Max takes and keeps $1,000 from the receipts. This is most likely
burglary.
robbery.
larceny.
embezzlement.
0 / 1 ptsQuestion 40Incorrect
Skip is accused of a crime. Skip can refuse to provide information about his allegedly criminal activities
if he suspects the information will be used to prosecute him.
under no circumstances.
if the information is "fruit of the poisonous tree."
if the police do not promise to keep the information confidential.
1 / 1 ptsQuestion 41
Nini, a police officer, wants to search the offices of Operational Business Corporation. She asks Judge Pearl to issue a warrant. Under theFourth Amendment, no warrant for a search can be issued without
reasonable doubt.
probable cause.
immunity.
double jeopardy.
1 / 1 ptsQuestion 42
Ajay sells "Bulk Up" steroids over the Internet. He is arrested and charged with the sale of a controlled substance. This is cyber crime,which is
a crime that is less real than the same crime in the physical world.
a new category of crime that is not related to older types of crime.
no crime.
a crime that occurs in the virtual community of the Internet.
1 / 1 ptsQuestion 43
Gem programs software to prompt a computer to continually crash and reboot. Gem intends to install this program on various companies'computer systems without the companies' knowledge. The program can reproduce itself, but must be attached to a host file to travel fromone computer network to another. This program is a
hacker.
worm.
virus.
botnet.
1 / 1 ptsQuestion 44
Leslie commits an act via email against Money Investment Company, a business in New York, where the act is a cyber crime. Leslieresides in Ohio, where the act is not a crime. Prosecution of Leslie in New York involves questions of
servicebased hacking.
phishing.
malware.
jurisdiction.
1 / 1 ptsQuestion 45
To prepare for a trial between SmartPhones, Inc., and TechApps Company, TechApps' attorney places SmartPhones' chief executiveofficer (CEO) under oath. A court official makes a record of the attorney's questions and the CEO's answers. This is
a crossexamination.
a deposition.
an interrogatory.
voir dire.
1 / 1 ptsQuestion 46
Fact Pattern 21
Martin files a suit against Nichelle in a state court over payment due on a shortterm employment contract. The case proceeds to trial,after which the court renders a verdict. The case is appealed to an appellate court.
Refer to Fact Pattern 2–1. After its review of Martin v. Nichelle, the appellate court upholds the lower court's verdict. The appellate court
has
remanded the case.
reversed the case.
affirmed the case.
reversed and remanded the case.
1 / 1 ptsQuestion 47
Fact Pattern 31Morsels Restaurant, Inc., and Nature Foods Corporation dispute a term in their contract.
Refer to Fact Pattern 31. Oona, a third party, resolves the dispute between Morsels and Nature. In most states, Oona must issue an awardor decision in writing
if the resolution involved mediation.
if the resolution involved arbitration.
under no circumstances
if the resolution involved negotiation.
1 / 1 ptsQuestion 48
In an effort to reduce traffic, Bay City enacts an ordinance that allows only a few specific street vendors to operate in certain areas. Acourt would likely review this ordinance under the principles of
the due process clause.
the First Amendment.
the equal protection clause.
the commerce clause.
1 / 1 ptsQuestion 49
Personnel Employment, Inc., has been ordered to appear at a hearing before an administrative law judge of the Social SecurityAdministration. A significant difference between a trial and an administrative hearing is that
the burden of proof is on the charged party to prove innocence.
hearsay can be introduced as evidence in an administrative hearing.
attorneys are not allowed to attend administrative hearings.
clients are not allowed to communicate with their attorneys during administrative hearings.
1 / 1 ptsQuestion 50
Quiana, an employee of Reservations for Less, Inc., pays Svetlana, an employee of Reservations for Less' competitor Travel Cheap, Inc.,for a secret Reservations for Less pricing schedule. This may be
an effective marketing strategy.
money laundering.
insider trading.
commercial bribery.
Quiz Score: 48 out of 50