Business Law Test 1 - Flashcards

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law

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a body of enforceable rules governing relationships among individuals and between individuals and their society

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precedent

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a court decision that furnishes an example or authority for deciding subsequent cases involving identical or similar facts

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concurrent jurisdiction

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jurisdiction that exists when two different court have the power to hear a case

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in rem jurisdiction

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jurisdiction over the thing; jurisdiction exercised over property that is located within its boundaries

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in personam jurisdiction

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personal jurisdiction; courts exercise this over and person or business that resides in a certain geographic area

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jurisdiction

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the authority of a court to hear and decide a specific case

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arbitration

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the settling of a dispute by submitting it to a disinterested third party who renders a decision that is often legally binding

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cost-benefit analysis

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a decision-making technique that involves weighing the costs of a given action against the benefits of that action

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ethics

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moral principles and values applied to social behaviors

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right of privacy

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human right and an element of various legal traditions which may restrain both government and private party action that threatens the privacy of individuals

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stare decisis

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common law doctrine under which judges are obligated to follow the precedents established in prior decisions

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The Sunshine Act

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"The Sunshine Act provides, with ten specified exemptions, that 'every portion of every meeting of an agency shall be open to public observation.' 5 U.S.C. 552b(b) It imposes procedural requirements to ensure, inter alia [among other things], that advance notice is given to the public before agency meetings take place. It also imposes procedural requirements an agency must follow before determining that one of the ten exemptions from the openness requirement applies. However, neither the openness requirement, nor the related procedural requirements, are triggered unless the governmental entity at issue is an 'agency,' and unless the gathering in question is a 'meeting' of the agency."

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defendent

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one against whom a lawsuit is brought

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plantiff

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one who initiates a lawsuit

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Freedom of Information Act

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a federal freedom of information law that allows for the full or partial disclosure of previously unreleased information and documents controlled by the United States government.

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administrative agencies

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a federal or state government agency established to perform a specific function

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common law

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the body of law developed from custom of judicial decision in English and US courts

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rescission

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the unmaking of a contract between parties.

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counterclaim

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a party's claim is a counterclaim if the defending party has previously (in the present action) made a claim against the claiming party. (suing back)

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utilitarian law

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law must be made to conform to its most socially useful purpose

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federal register

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the official journal of the federal government of the United States that contains government agency rules, proposed rules, and public notices.

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negotiation

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a process in which parties attempt to settle their dispute informally with or without attorneys to represent them

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1st Amendment

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Freedom of Religion, Press, Speech, Assembly, Petition

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4th Amendment

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Right to be free from un-reasonable searches and seizures

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5th Amendment

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Right to grand jury indictment, no double jeopardy, freedom from self-incrimination, due process of law

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specific performance

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an equitable remedy requiring exactly the performance that was specified in a contract. Usually, it is granted only when money damages would be an inadequate remedy and the subject matter of the contract is unique (for example, real property)

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standing to sue

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the requirement that an individual must have a sufficient stake in a controversy before he or she can bring a lawsuit

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long-arm statute

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a state statute that permits a state to obtain personal jurisdiction over nonresident defendants

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mediation

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a method of settling disputes outside the courts by using a neutral third part who acts as a communicating agent between the parties and assists them in negotiating a settlement

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Commerce Clause of US Constitution

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The clause states that the United States Congress shall have power "To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes." (Article I, Section 8, Clause 3).

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The U.S. Constitution is the supreme law of the United States.

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True

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A defendant is a person against whom a lawsuit is brought.

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True

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In a suit against Clem, Dona obtains the cancellation of a contract. This is

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recession

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A state law that conflicts with the U.S. Constitution will be deemed unconstitutional.

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True

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In an action against Elin, Frank obtains a remedy. This is

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the legal means to recover a right or to redress a wrong

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A court may depart from a precedent if the court decides that the precedent should no longer be followed.

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True

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Constitutional law includes only the U.S. Constitution.

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False

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Network Corporation files a suit against Omega, Inc., alleging that Omega breached a contract to sell Network customized software. Network is

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the plantiff

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The Federal Trade Commission (FTC) is a government agency that issues rules, orders, and decisions. The Georgia state legislature enacts statutes. The Jackson County Board and the Peach City Council enacts ordinances. Administrative law includes

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the rules, orders, and decisions of the Federal Trade Commission

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Common law is a term for the law that is known to most of us.

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False

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To Cody, the written law of a particular society at a particular time is most significant. Cody is

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a legal positivist

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Stare decisis is a doctrine obligating judges to help persons who have failed to protect their own rights.

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False

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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

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the court and courts of lower rank

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The Securities Exchange Commission (SEC) is an administrative agency. Like other administrative agencies, the SEC was established to

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perform a specific function

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The basis for the U.S. legal system is the natural law school.

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True

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Monetary damages is a remedy at law.

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True

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The federal government and the state governments constitute the U.S. legal system. This system is based on the legal system of

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England

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MaxiMart, Inc., is a discount retailer. MaxiMart's customer service employees 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

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an injuction

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The law establishes rights, duties, and privileges that are consistent with the values of society.

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True

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Beth is a victim of Carl's violation of a criminal law. Criminal law is concerned with

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wrongs committed against the public as a whole

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Mandatory arbitration clauses in employment contracts are not enforceable.

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False

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Transnational Corporation and United Shipping, Inc., agree to a contract that includes an arbitration clause. If a dispute arises, a court having jurisdiction may

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order a party to submit to arbitration

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National Consumer Goods Corporation and Paula Purchaser agree to resolve their dispute in arbitration. The arbitrator's decision is called

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an award

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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

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means that the Idaho court's decision is the law in Idaho

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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

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a deposition

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Jim files a suit against Katy. 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

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arbitration

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The function of the courts is to interpret and apply the law.

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True

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A summary judgment is granted only if there is a genuine question of fact.

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False

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Sean, a citizen of Tennessee, files a suit in a Tennessee state court against Upland Cattle Corporation, a Wyoming company that does business in Tennessee. The court has original jurisdiction, which means that

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the case is being heard for the first time

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A state court can exercise jurisdiction over any person within the boundaries of the state.

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True

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Voir dire is a process for presenting evidence in a case.

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False

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No case can proceed to trial unless the plaintiff can prove that he or she has properly served the defendant

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True

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In mediation, the mediator proposes a solution that includes what compromises are necessary to reach an agreement.

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True

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Betty files a suit against Colin. 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

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negotiation

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A judge instructs a jury as to the law that applies in a case.

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True

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In Ed's suit against First National Bank, the discovery phase would include all of the following except

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Ed's complaint

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Sheila files a suit against Tyler. Before going to trial, the parties, with their attorneys, meet to try to resolve their dispute. A third party helps them to reach an agreement. This is

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mediation

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

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the selection of jurors

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Venue is the term for the subject matter of a case.

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False

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A counterclaim is raised by a plaintiff against a defendant's response to a complaint.

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False

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Flexo Trucking Company transports hazardous waste. The company knows that Garn, one of its drivers, drives longer hours than federal regulations permit. One night, Garn exceeds the limit and has an accident. Spilled chemicals contaminate Hill City's water source, and the residents have to be evacuated. Flexo acted unethically because

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Flexco showed reckless disregard for Hill City's residents and others

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Adhering strictly to all business laws is all that is necessary to fulfill all business ethics obligations.

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False

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Few companies provide any kind of support such as ethical training programs to make their ethical codes more effective.

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Flase

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Bob, a research manager for CornAgri Products, Inc., adheres to utilitarian ethics. Bob will determine that an action is morally correct when it produces the greatest good for

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the most people

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Any decision by the management of Fast-Food Franchise Corporation may significantly affect its

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operators, owners, suppliers, the community, or society as a whole

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Absolute mandates such as the commandment "Thou shalt not steal" can be justifiably broken if there is a benevolent motive.

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False

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Corporations owe ethical duties only to their shareholders.

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False

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Acting in good faith gives a business firm a better chance of defending its actions in court.

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True

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Megan is the ethics officer for Nature's Eggs, Inc., an organic egg raising company. In overseeing the application of the company's ethical code of conduct, Megan is most likely not in charge of

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ethical reviews of employees' family members

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Julia, the head executive of Fine Woolen Sweaters, Inc., is a committed Christian who strongly adheres to the Ten Commandments. One of Julia's employees is found to be stealing sweaters and giving them to a local homeless shelter. Julia is likely to

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punish employee for stealing even though the employee's motive was benevolent

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Margaret is the top manager of Pecans, Inc. She sets strict ethical standards for all employees. Margaret, however, often takes some of the company's best nuts and sells them from her house. The ethical tone at Pecans, Inc. is

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not likely to be good because although Margaret sets strict ethical standards for the other employees, she does not follow them.

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Business ethics applies only to the employees of corporations.

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False

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In ethical terms, a cost-benefit analysis is an assessment of the negative and positive effects of alternative actions on individuals.

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True

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An ethical code of conduct can set the ethical tone of a firm.

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True

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Business ethics is not more complicated than personal ethics.

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False

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In making business decisions, Glenda, a personnel manager for HVAC Maintenance, Inc., applies her belief that all persons have fundamental rights. Glenda is applying

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the principle of rights

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Richard suspects his supervisor of unethical accounting practices. However, he does not want to lose his job if he reports the supervisor and the supervisor finds out who reported him. An important feature of online reporting systems like EthicsPoint is

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the employee reporting the unethical behavior can do so anonymously

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In making a decision as chief executive officer of Straightarrow Archery Supplies, Robin always considers whether he would feel any guilt about a particular action. As a guide, Robin is using

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his conscience

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According to utilitarianism, an action that affects the majority adversely is morally wrong.

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True

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Mary works in the public relations department of New Trends Sales Company. Her job includes portraying New Trends's activities in the best possible light. In this context, ethics consist of

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the same moral principles that apply to non-business activities

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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

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substantive due process

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The First Amendment requires a complete separation of church and state.

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False

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The commerce clause's express grant of exclusive authority to regulate commerce that substantially affects trade and commerce among states is referred to as the

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positive aspect of the commerce clause

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Because the Constitution does not specifically a right to privacy, this right is denied to people.

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False

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Oklahoma enacts a law requiring all businesses in the state to donate 10 percent 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

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the establishment clause

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Mary creates a t-shirt design that expresses support for a presidential candidate and distributes t-shirts to all her friends. The t-shirts are an example of

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symbolic speech

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George burns an American flag in his backyard. He films his actions and posts the video on YouTube.com. George's actions are

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protected by the First Amendment of the US Constitution

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The Fifth Amendment prohibits unreasonable searches and seizures of persons or property

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False

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Adult Shoppe in Bay City sells a variety of publications, including child pornography. Bay City enacts an ordinance prohibiting the sale of such materials. This ordinance is most likely

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constitutional under the First Amendment

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Under the Constitution, the judicial branch is responsible for foreign affairs.

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False

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Julia is a U.S. citizen. She establishes a website that posts threatening messages about celebrities. Her website is

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not protected by the First Amendment

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The checks and balances in the U.S. Constitution prevent any one branch of government from exercising too much power.

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True

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Martin, a U.S. citizen, feels that a recently enacted federal law is unfair. He assembles a group of friends and they write a petition to the government. Martin and friends then stand quietly in front of the White House with signs declaring their belief that the law is unfair. Under the First Amendment, Martin has a right to

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both petition the government and assemble peaceably

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California enacts a statute to ban advertising in "bad taste." This statute would likely be held by a court to be

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an unconstitutional restriction of speech

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The First Amendment protects defamatory speech.

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False

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All powers not specifically delegated to the federal government are reserved to the states

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True

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The police obtain a search warrant and search Dave's apartment. After yelling obscenities at the officers, Dave confesses to a crime and implicates his friends. The Constitution protects against

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unreasonable searched only

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The President determines the jurisdiction of the federal courts.

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False

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Under their police powers, states can regulate only public activities, such as political demonstrations

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False

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Article I, Section 8, of the U.S. Constitution permits Congress to regulate interstate commerce

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True

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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

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changed the agency's prior policy without justification

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To notify the public of a proposed rule, the Food Safety and Inspection Service, like other federal agencies, publishes the proposal in

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the Federal Register

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The period for persons to comment on a proposed administrative rule must be at least thirty days

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True

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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

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a negotiated settlement

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A party seeking court review of an administrative action must first exhaust all of his or her administrative remedies before seeking court review.

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True

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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

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the Government in the Sunhine Act

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The Consumer Product Safety Commission (CPSC) wants Monster Toy Company to produce certain records for review. To obtain the records, the CPSC will issue

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a subpoena

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Federal administrative agencies can regulate beyond the powers granted by enabling legislation.

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False

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State regulation, when not preempted, may cover many of the same activities as federal regulation

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True

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The functions of the Social Security Administration, like those of other administrative agencies, include

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adjudication

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Administrative agencies can conduct warrantless searches in some situations.

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True

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Under the exhaustion doctrine, a party must feel "exhausted" about an administrative action or regulation to challenge it in court.

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False

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Only experts can submit comments on a proposed administrative rule.

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False

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Final administrative rules have binding legal effect unless the courts later overturn them

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True

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Playground Equipment, Inc., is subject to regulations issued by the Occupational Safety and Health Administration (OSHA). Like other federal administrative agencies, the OSHA was created by

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Congress, through enabling legislation

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Beck seeks information about Donatello and other well-known businesspersons under the Freedom of Information Act. To obtain the information, Beck must

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reasonably describe the information

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Caleb is a witness in a controversy involving the U.S. Drug Enforcement Administration. Caleb can be compelled to appear before an administrative law judge if he is served with

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a subpoena

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The public must be provided with adequate advance notice of scheduled federal administrative agency meetings and agendas.

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True

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The Food and Drug Administration (FDA) is investigating reports that Caplets Pharmaceutical Corporation is putting potentially harmful additives in Doze, a new pain-relief medication. The FDA's demands for particular documents from Caplets

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(do not have the correct answer, but the answer is NOT "must be general so as to force an uncooperative party's compliance.")

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Often, an administrative agency itself enforces its rules.

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True

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4-3 Equal Protection Clause Under this test, how should the court rule? Why?

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For example, the question of equal protection - it is true that everyone is entitled to equal protection. However, with this example, a topless male dancer is no different with regard to the clothing, that you would see any given day on the beach. Men do not generally wear tops with their bathing suits, but women do (although some of them barely do!) The issue is not necessarily the clothing or lack of clothing, but that of the decency. I believe the sexual nature of the dancers is the real issue - not just the clothes. Do you see the difference? The ordinance was not necessarily aimed at the clothing issue, but the "adult entertainment" issue.

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2-1 Standing to Sue Do the Turtons have a standing to sue? why or why not?

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Yes, I believe the Turtons have a right to sue the county because they have suffered harm. The problem is also real and not hypothetical or made up. Not only did the county ignore the Turton's previous requests, but the county also put the community in danger by placing hazardous materials in the land and close to a home (or homes).

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