Business Law 2013 Final Study Guide True/False



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Business Law 2013 Final Study Guide
True/False

Indicate whether the statement is true or false.
CHAPTER 1
____ 1. Our law codes today are similar to those of civilizations thousands of years old.
____ 2. A group of laws put together in an organized form is called a statute.
____ 3. The Supreme Court of the United States is the final interpreter of the federal Constitution.
____ 4. The world's two great systems of law are the English common law and the Napoleonic Code.
____ 5. Intrastate commerce is commerce between two or more states.
____ 6. Administrative agencies are usually controlled by the judicial branch of the government.
____ 7. The Uniform Commercial Code (UCC) is a federal statute.
____ 8. The system of law in the United States is based on the English common law.
____ 9. The doctrine of stare decisis requires lower courts to follow established case law in deciding similar cases.
____ 10. In the United States today, law courts and equity courts generally are merged.
CHAPTER 2
____ 11. The Declaration of Independence was adopted on July 4, 1776, by delegates of the 13 original colonies meeting in Philadelphia.
____ 12. A regulation made by a federal agency does not have the same effect as a law made by Congress.
____ 13. Even though political parties are very important in the selection of candidates for federal offices, they are not mentioned in the Constitution.
____ 14. Almost universal access by anyone with a computer to the information contained on the Internet was facilitated primarily through a program developed in the spare time of Tim Berners-Lee.
____ 15. The decentralization of the Internet makes it nearly impossible to exercise legal control over it and what goes on within it.
____ 16. The right of privacy is not specifically mentioned in the Constitution or the Bill of Rights.
____ 17. The Senate can block any action of the House, but the House cannot block any action of the Senate.
____ 18. The Senate has the sole power to try all impeachment cases.
CHAPTER 3
____ 19. In the state court system, sheriffs or their deputies have the duty to summon witnesses, keep order in court, and take steps to carry out judgments.
____ 20. Appellate courts never decide matters of fact.
____ 21. There are thirteen federal courts of appeal.
____ 22. The state supreme courts issue the final decision on all matters of law appealed to them.
____ 23. Although juvenile courts are open to the public, the records of juvenile cases are closed.
____ 24. "Justice" is the proper title for judges sitting on state supreme courts as well as for the judges sitting on the U.S. Supreme Court.
____ 25. Typically, small claims court cases are tried before a judge and a jury.
CHAPTER 4
____ 26. Crimes are either classified as felonies or misdemeanors according to the severity of their potential punishment.
____ 27. Generally, all the jurors must vote for conviction before a person can be convicted of a crime.
____ 28. The holding of a corporation or one of its officers criminally liable for the actions of one of its employees is referred to as victimless criminal liability.
____ 29. Procedural defenses focus on whether the alleged criminal actually committed the crime.
____ 30. It is not a crime to buy property that you know has been stolen.
____ 31. "Falsely making or altering a writing to defraud another" is the definition of the crime of embezzlement.
____ 32. A grant of immunity can eliminate a person's right to refuse to testify on the grounds of self-incrimination.
____ 33. Generally, what is a crime for an adult is juvenile delinquency for a minor.
CHAPTER 5
____ 34. Like a crime, a tort is considered to be a public wrong.
____ 35. One act by a defendant cannot be both a crime and a tort.
____ 36. All torts require that the defendant intended to injure the plaintiff.
____ 37. Written or printed defamation is known as libel.
____ 38. Public figures, such as politicians or movie stars, give up much of their right to privacy when they enter the public domain.
____ 39. Punitive damages are available for the intentional tort of negligence.
____ 40. A second grade teacher who makes one of his students sit at his desk during recess has committed the tort of false imprisonment.
Multiple Choice

Identify the choice that best completes the statement or answers the question.
CHAPTER 1
____ 41. The power to decide a case is termed

a.

fiat.

c.

sanction.

b.

the long arm of the law.

d.

jurisdiction.

____ 42. When Dorothea moved into her community and wanted to start a home-based business, the city required her to purchase a $20 permit and to register her business name with the local county government. This situation is an example of a(n)



a.

ordinance.

c.

administrative law.

b.

constitutional law.

d.

criminal law.

____ 43. Which type of law allows for flexibility within a legal system?



a.

jurisdictional law

c.

positive law

b.

common law

d.

sovereign law

____ 44. Governing rules and regulations passed by a city council or county government are referred to as



a.

statutes.

c.

case law.

b.

ordinances.

d.

promulgations.

____ 45. Which of the following is true regarding federal case law?



a.

created by legislature

b.

created after a trial has ended and one of the parties appeals case to a higher court

c.

created by the judicial branch

d.

both b and c

____ 46. In order to provide stability to a legal system, courts use prior cases as a guide for deciding similar new cases. These prior cases are known as



a.

precedents

c.

jurisdiction.

b.

equity.

d.

statutes.

____ 47. At what level are laws created in the United States?



a.

federal government

c.

local government

b.

state government

d.

all of these

____ 48. Meryle Ann's mother recently died and, unfortunately, did not leave any type of will for her estate. In order to properly divide her mother's estate among her and her brothers, Meryle Ann will hire a lawyer to handle this case. In which specialty area should she seek to find a lawyer?



a.

criminal law

c.

civil law

b.

statutory law

d.

case law

____ 49. Raye and Yasmin own and operate a trucking company in which they transport goods and supplies from their home state to 43 other states in the United States. Who has the power to provide regulations that Raye and Yasmin must follow in their type of commerce?



a.

federal government

c.

local government

b.

state government

d.

both a and b

____ 50. The division of powers between people and their governments protecting U.S. citizens from government actions is set forth in the



a.

U.S. Constitution.

b.

Bill of Rights.

c.

first ten amendments of the U.S. Constitution.

d.

both b and c.

____ 51. The document that sets forth the framework of a government and its relationship to the people it governs is



a.

the Bill of Rights.

c.

a constitution.

b.

an ordinance.

d.

the Uniform Commercial Code.

____ 52. If a state constitution and the U.S. Constitution conflict, which prevails?



a.

the U.S. Constitution

b.

the state constitution

c.

neither prevails—the matter is referred to Congress

d.

neither prevails—the matter is referred to the President

____ 53. The third stage in the growth of law is



a.

personal revenge.

b.

substitution of damages for revenge.

c.

leader or central authority gives power to a system of courts.

d.

leader or central authority sets down a constitution.

____ 54. Which of these is based on the current standards or customs of the people?



a.

civil law

c.

codes

b.

positive law

d.

common law

____ 55. Which state has its legal system based on the Roman civil law format of organized, comprehensive sets of statutes in code form?



a.

Missouri

c.

Florida

b.

California

d.

Louisiana

____ 56. The panel of citizens chosen to help interpret a region’s customs for a court is referred to today as a(n)



a.

jury.

c.

factual panel.

b.

agency.

d.

court.

____ 57. An open, peaceful violation of a law to protest its alleged, or supposed, injustice is referred to as



a.

political protest.

c.

civil disobedience.

b.

civil riot.

d.

ethical posturing.

____ 58. Laws made by administrative agencies are often called



a.

ordinances.

c.

standards.

b.

rules and regulations.

d.

guidelines.

____ 59. Which of these terms describes using prior cases as a guide for deciding similar new cases?



a.

injunction

c.

precedent

b.

code

d.

jurisdiction

____ 60. The subject area of business law would include which of the following topics?



a.

commercial torts

c.

criminal conspiracies to fix prices

b.

contracts
CHAPTER 2

d.

all of the above

____ 61. When the Constitution was declared effective and binding on March 4, 1789, only ____ states had ratified it.



a.

7

c.

11

b.

9

d.

13

____ 62. The U.S. Constitution provided that persons may not be deprived of the following without due process of law:



a.

life, liberty, or property.

b.

food, clothing, and shelter.

c.

health, happiness, and prosperity.

d.

life, liberty, or the pursuit of happiness.

____ 63. The American Declaration of Independence



a.

denounced royal rule and the "divine right of kings" throughout the world.

b.

called for a strong central government of the American colonies, to be based in Washington, D.C.

c.

stated that all men are endowed by their Creator with the right to life, liberty, and the pursuit of happiness.

d.

all of these.

____ 64. If convicted under due process of law, a criminal may be deprived of



a.

liberty, by imprisonment.

b.

property, by fine or order to make restitution.

c.

life, by execution.

d.

all, or a combination, of these.

____ 65. Which of the following federal agencies is charged with the responsibility of eliminating discrimination based on race, religion, sex, color, national origin, age and disability in the workplace?



a.

Interstate Commerce Commission

b.

Federal Trade Commission

c.

Equal Employment Operations Committee

d.

none of these.

____ 66. Under the Constitution, members of Congress are elected on the basis of



a.

population of the state.

b.

existence as a state.

c.

selection by all citizens in national elections.

d.

both a (for Representatives) and b (for Senators).

____ 67. Under the Constitution, our federal government is a



a.

republic, or representative democracy.

b.

two-political-party balance of interests and power.

c.

democracy, tainted by special interests.

d.

pure democracy.

____ 68. Which of the following areas of law is primarily a concern and responsibility of individual state governments?



a.

interstate commerce law

c.

import and export law

b.

business and contract law

d.

military and national defense law

____ 69. The Constitution may be amended by



a.

two-thirds majority vote in both the Senate and the House.

b.

ratification by the legislatures of three-fourths of the states.

c.

ratification by conventions in three-fourths of the states.

d.

all of these.

____ 70. Which of the following acts protects the privacy of an employee’s e-mails at work?



a.

Communications Decency Act

c.

Lanham Act

b.

Telecommunications Act

d.

none of these.

____ 71. Which amendment to the U.S. Constitution abolished slavery?



a.

First

c.

Fourteenth

b.

Thirteenth

d.

none of the above

____ 72. Which of the following cases did not have a role in evolving a standard for what was and was not obscene?



a.

Roth v. United States

c.

Arizona v. Miranda

b.

Miller v. California

d.

All of the above did have a role.

____ 73. Roland and Vivian prefer to practice religion privately in their home with family and a few close friends. What protects Roland and Vivian's religious freedom?



a.

Fifth amendment to the U.S. Constitution

b.

Preamble to the U.S. Constitution

c.

First Amendment to the U.S. Constitution

d.

none of the above

____ 74. Which document placed strict term limits on a state’s representatives to the Congress?



a.

Articles of Confederation

c.

U.S. Constitution

b.

Declaration of Independence

d.

none of the above

____ 75. Which of these documents is not considered a basis of the U.S. Bill of Rights?



a.

Magna Carta

b.

Petition of Rights

c.

Britain's Bill of Rights

d.

All of the above are considered bases for the U.S. Bill of Rights
CHAPTER 3

____ 76. The court with original jurisdiction over a legal dispute is typically known as the



a.

trial court.

c.

supreme court.

b.

appellate court.

d.

all of these.

____ 77. Who of the following makes decisions that bind the parties to a dispute?



a.

mediator

c.

conciliator

b.

arbitrator

d.

none of these

____ 78. An appellate court bases its decisions primarily on



a.

transcripts of the trial and selected witnesses testifying.

b.

transcripts of the trial and appellate briefs.

c.

appellate briefs and selected witnesses testifying.

d.

appellate briefs, selected witnesses testifying, and transcripts of the trial.

____ 79. Courts that administer wills and estates are called



a.

family courts.

c.

federal district courts.

b.

probate courts.

d.

estate courts.

____ 80. Municipal courts are usually divided into



a.

criminal divisions.

c.

both a and b.

b.

traffic divisions.

d.

none of these.

____ 81. Which of the following is not a court with a specialized jurisdiction?



a.

probate court

c.

juvenile court

b.

small claims court

d.

trial court

____ 82. Which of the following cases would be allowed into federal court?



a.

one with citizens from the same state but $10,000,000 in dispute

b.

one with less than $75,000 in dispute but a federal question

c.

one between a citizen of a state and a citizen of a foreign nation but with only $50,000 in dispute

d.

all of these would be barred from federal court

____ 83. Which level of appellate court can substitute its factual determination for that of the jury that heard the case?



a.

a state supreme court

b.

a federal appellate court

c.

the U.S. Supreme Court

d.

None of these can do so.

____ 84. A written argument submitted to the presiding judge by an attorney in the case is called a(n)



a.

transcript.

c.

brief.

b.

transcription.

d.

none of these

____ 85. Which of the following is not a specialized court in the federal system?



a.

tax court

b.

Court of International Trade

c.

probate court

d.

all the above are specialized courts in the federal system

____ 86. Margo's mother recently died and left a detailed will describing her wishes regarding the division of her real and personal property. Which court will actually administer the will and estate?



a.

federal district court

c.

state probate court

b.

state decedents court

d.

none of the above

____ 87. To resolve a dispute in court is to



a.

litigate.

c.

arbitrate.

b.

mediate.

d.

probate.

____ 88. The power to ordain and establish the federal courts was vested in the ____ by the Constitution.



a.

Congress

c.

U.S. Supreme Court

b.

President

d.

none of the above

____ 89. Which Article of the U.S. Constitution provides for the creation of the federal judicial system?



a.

I

c.

III

b.

II

d.

IV

____ 90. How many federal courts of appeal exist within the federal court system?



a.

13

c.

63

b.

50
CHAPTER 4

d.

1

____ 91. What is the standard of proof in a criminal case?



a.

proof by clear and convincing evidence

b.

proof by a preponderance of the evidence

c.

proof beyond a reasonable doubt

d.

none of these

____ 92. Under common law, how were those below the age of seven treated with regard to criminal intent?



a.

Their criminal intent had to be proven in court.

b.

They were presumed incapable of forming criminal intent.

c.

They were treated the same as any other alleged criminal.

d.

none of these

____ 93. A crime is a punishable offense committed against



a.

the courts.

c.

a victim.

b.

society.

d.

all of the above.

____ 94. Which of the following parties would not be held to have criminal intent?



a.

the voluntarily intoxicated

b.

the insane

c.

the extremely careless

d.

all of the above would be held to have criminal intent

____ 95. Which of the following is not a constitutional right of an accused?



a.

the right to be represented by a lawyer

b.

the right to be subject to arrest only when there is probable cause

c.

the right to refuse to testify against oneself

d.

the right to a private cell when in jail

____ 96. What can the government do to compel a witness to testify after she or he has asserted the right against self-incrimination?



a.

arrest the witness

b.

ask the judge to hold the witness in contempt

c.

grant immunity

d.

plea bargain

____ 97. Which of the following is not a potential defense to criminal charges?



a.

ignorance of the law

b.

self-defense

c.

criminal insanity

d.

All of the above are potential defenses to criminal charges.

____ 98. Which of the following would not be a white-collar crime?



a.

stock fraud

c.

robbery

b.

price fixing

d.

income tax evasion

____ 99. Rick was arrested last Friday, but the arresting police officer did not read him his Miranda Rights. What type of defense could his attorney use to defend Rick?



a.

immunity

c.

a substantive defense

b.

a procedural defense

d.

both a and c

____ 100. While walking to her bank, a young man grabbed Nikki, threatened to shoot her, and then took her purse. Inside Nikki's purse was her wallet, which included credit cards, her driver's license, and her paycheck. The thief later took her paycheck, signed Nikki's name, and successfully cashed the paycheck. What crime(s) did the thief commit?



a.

forgery

c.

robbery

b.

bribery

d.

both a and c

____ 101. Which of the following crimes is not a type of larceny?



a.

robbery

c.

shoplifting

b.

burglary

d.

forgery

____ 102. A search to discover evidence will be deemed reasonable if there is ____ for it.



a.

immunity

c.

probable cause

b.

hazardous potential

d.

probable consent

____ 103. Benton, a bank guard, and his friend, Adams, planned to rob Benton's employer, the First Bank and Trust of Evansville. Shortly before the crime was to be carried out, Benton told Adams that he would have nothing to do with it. Nonetheless, Adams robbed the bank according to the plan. Benton did nothing to stop her. Benton could be charged with



a.

embezzlement.

c.

conspiracy.

b.

extortion.

d.

none of the above.

____ 104. Maggie has been unable to sell her home because it is old and deteriorated. In order to build a new house, Maggie sets fire to her house and then files an insurance claim to obtain money to build a newer home. What crime did Maggie commit?



a.

conspiracy

c.

robbery

b.

arson

d.

none of these

____ 105. A plea bargain that has been arrived at by negotiations between the accused and the prosecutor must still be approved by



a.

the victim of the crime.

b.

the governor of the state in which the case is being tried.

c.

the judge of the court in which the case is being tried.

d.

no approval is necessary.
CHAPTER 5

____ 106. What two remedies are generally available in a civil lawsuit?



a.

fines and damages

c.

fines and injunctions

b.

injunctions and damages

d.

none of these

____ 107. Which of the following compels a witness to appear in court and testify?



a.

a complaint

c.

a service

b.

a subpoena

d.

an indictment

____ 108. A harmful or offensive touching is called a(n)



a.

assault.

c.

defamation.

b.

battery.

d.

invasion of privacy.

____ 109. A complete defense for a slander and libel suit would be to show that the statement is



a.

false.

c.

true.

b.

injurious to one's reputation.

d.

none of these.

____ 110. An intentional misrepresentation of a material fact that the victim relied on and consequently parted with a legal right or something else valuable is known as



a.

embezzlement.

c.

fraud.

b.

conversion.

d.

none of the above.

____ 111. The most common tort is



a.

assault.

c.

invasion of privacy.

b.

battery.

d.

negligence.

____ 112. After hearing Cheri's case in court, a judge awarded her $20,000 to compensate for the loss she suffered as a result of Benson's negligence. This monetary compensation is known as



a.

actual damages.

c.

punitive damages.

b.

compensatory damages.

d.

either a or b.

____ 113. The three main elements of a compensatory damage award are



a.

lost wages, medical bills, and pain and suffering.

b.

lost wages, punishment sum, and pain and suffering.

c.

punishment sum, medical bills, and pain and suffering.

d.

punishment sum, medical bills and lost wages.

____ 114. The party complained against in a civil case is known as the



a.

plaintiff.

c.

respondent.

b.

dependent.

d.

none of the above

____ 115. After Greta and Tom finalized their divorce, Greta repeatedly harassed her former husband by driving by his apartment, yelling obscenities, and throwing rocks at his windows. Tom contacted the police and eventually the court issued an order preventing Greta from continuing the harassing activity. This court order is known as a(n)



a.

imperative.

c.

injunction.

b.

fiat.

d.

condemnation.




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