Business Law Chapter 4

question

The U.S. Constitution created a _____ form of government.
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federal
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What powers do the states have to regulate or prohibit private activities?
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Police powers
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State police powers only authorize the creation and maintenance of police forces.
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False
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All powers expressly “reserved” to the states fall under the ____ amendment.
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Tenth
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Which of the following would NOT be regulated at the state level?
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Interstate commerce laws
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Legislative Branch
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Interprets the law
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Judicial Branch
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Enforces the law
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Executive Branch
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Makes the laws
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Our government has a system of _____ and _____ that allow each branch to limit the actions of the other two branches. For example, the _____ branch can enact a law, but the ___ branch can veto that law.
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checks, balances, legislative, executive
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Article 1, Section 8, of the U.S. Constitution impacts businesses greatly and is referred to as the ____ clause.
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Commerce
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If you are a farmer who grows and sells only locally, can you correctly conclude that the commerce clause does NOT apply to your activities?
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No, because the commerce clause has been broadly interpreted.
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State laws that allow the use of medical marijuana insulate users in those states from federal prosecution.
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False
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If a state passes a regulation that impacts interstate commerce, it may violate the _____ commerce clause. To decide if the regulation is unconstitutional, the courts typically balance the _______ of the state against the _____ on interstate commerce.
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dormant; interests; burdens
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When there is a direct conflict between a federal and a state law, the state law is rendered invalid
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question

When Congress intends to exclusively control a subject where the U.S. Constitution allows for both states and the federal government to act, courts will use the doctrine of _______ to invalidate any state regulations.
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preemption
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In addition to the right to assemble peaceably and to petition the government, the First Amendment guarantees which of the three following freedoms?
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speech, religion, and press
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The Fourth Amendment prohibits unreasonable searches and seizures of persons or property. T/F
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True
question

As originally intended, the first ten amendments to the Constitution limited only the power of:
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the federal government.
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When the language in the Bill of Rights is unclear, which of the following may occur?
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The individual state legislatures interpret the unclear language.
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The two main purposes of the Free Speech Clause of the First Amendment are to allow people to:
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freely voice their political opinions, and criticize the government.
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Symbolic speech is not protected by the Bill of Rights.
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False
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Content-neutral laws regulate the time, place, and _____ , but not the content of speech.
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manner
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The compelling government interest test is used by the courts to determine whether a law regulating the content of speech will be permissible.
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True
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Your state passes a law prohibiting businesses from supporting political candidates. You challenge the law in court. Will a court uphold that law?
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No, because the law is an unconstitutional restriction of free speech.
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Commercial speech is protected to the same extent as political speech.
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False
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free exercise Clause
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Prohibits Congress from interfering with an individual’s right to believe what he or she chooses
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free speech Clause
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Prohibits Congress from restricting the right to criticize the government
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establishment clause
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prohibits Congress from creating a state-sponsored religion
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The government may not restrict a person’s exercise of religion if the restriction will place a moderate burden on their ability to practice their religion.
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False
question

The ______ Amendment protects the “right of the people to be secure in their persons, houses, papers, and effects.” Usually officers must obtain a _____ , based on _____ , in order to enter a dwelling. Under the ______ Amendment, natural persons, but not ______ , have the right not to incriminate themselves.
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fourth, search warrant, probable cause, fifth, corporations
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Provisions of the Fifth and Fourteenth Amendments guarantee that no person shall be deprived of life, liberty, or property without due process of law. This clause applies to all “legal persons,” meaning:
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individuals and corporations
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Substantive due process
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Requires that the government be fair and reasonable in its legislation and executive actions
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Equal protection
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Requires that the government treat similarly situated people in a similar manner
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Procedural due process
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Requires that the government give proper notice and opportunity to be heard and follow any established processes
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A law that imposes prison sentences on all street entertainers without a trial would likely violate procedural due process.
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True
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If a student is kicked out of school based on an allegation of cheating but does not have an opportunity to present his case to the dean, it is likely a violation of:
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procedural due process
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The Fourteenth Amendment does NOT guarantee:
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freedom of the press
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To determine whether a law violates the equal protection clause, courts use one of three different standards. These three standards are:
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strict scrutiny, intermediate scrutiny, and rational basis scrutiny.
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A state law that bans illegitimate children from claiming child support from their parents after they turn ten, but does not ban legitimate children from doing the same, violates the procedural due process clause.
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False
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The _______ basis test requires that the classification of people be related to a _______ government interest.
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rational; legitimate
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The U.S. Constitution specifically mentions privacy as one of the protected rights U.S. citizens have.
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False
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Gramm-Leach-Biley Act
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Prohibits disclosure of nonpublic personal information without certain requirements being met
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Freedom of Information Act
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Gives individuals a right to access information about them in government files
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Privacy Act
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Regulates agency use and disclosure of data related to individuals
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Electronic Communications Privacy Act
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Prohibits interception of information communicated electronically
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Health Insuracne Portability and Accountability Act
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Requires medical records to be used only for authorized purposes and requires informing patients of their rights to medical records
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The _______ greatly expanded the authority of the government to monitor e-mails and Web site visits.
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Patriot Act
question

The state of Nevada passes legislation that bans speakers from hallways in academic buildings on university campuses in order to preserve the quiet that students need to study effectively and to ensure that pedestrian traffic is not blocked. Luis challenges the law as a violation of his rights to free speech. Will Luis win his suit?
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No, because the right to free speech allows for a reasonable regulation of time, place, and manner so long as the regulation is content neutral.
question

Steve, a citizen of New York, wants to obtain a business license in Illinois. The Illinois legislature passed a law requiring nonresidents to pay a $1,500 fee to apply for business licenses in the state of Illinois. Illinois residents pay nothing for a business license. This discrepancy in the fees between the residents of Illinois and other states may violate:
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the privileges and immunities clause
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A city ordinance allows only two hot-dog stands to operate in the city’s downtown area. If someone who would like to add another hot-dog stand challenges this ordinance under the equal protection clause, the rule will be subject to:
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the rational basis test
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Congress passes legislation that requires all people to have health insurance or pay fines to the government. The president analyzes the legislation and signs it. Several different individuals challenge the law as unconstitutional and the United States Supreme Court agrees to hear the case. After the hearing, the justices declare that the law is constitutional. This is an example of:
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the system of checks and balances.
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The Iowa legislature passed a law banning trucks 65 feet long or longer from operating on its roads and highways because big trucks do more damage to roads than smaller trucks and are involved in more serious accidents. Prior to the ban, Consolidated Freightways (CF) had driven big trucks through Iowa on a regular basis, and these trucks were legal in other states. Switching to smaller trucks for trips through Iowa was inconvenient and costly. CF filed a lawsuit contending that the statute was unconstitutional. The United States Supreme Court most likely found that the Iowa statute was:
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unconstitutional under the “dormant” commerce clause.
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Garrett was a commercial tour boat operator on the northern coast of Kauai, Hawaii. He was licensed by the state of Hawaii to operate his boat in Hanalei Bay. The U.S. Department of Transportation and the U.S. Coast Guard also granted Garrett an unrestricted license to operate his boats in Hanalei Bay. Hawaii subsequently passed a law that banned all commercial use of Hanalei Bay. The state refused to renew Garrett’s state license and ruled that he was not allowed to operate his vessel based on his federal licenses. Garrett sued the state, alleging that the state law that prohibited him from operating his boat conflicted with the federal law that authorized him to do so. The court probably found that the state law was:
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unconstitutional under the supremacy clause.
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A state legislature passes a statute prohibiting businesses from supporting any political candidate. If some business owners challenge the constitutionality of the law in court, will the law be upheld?
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No, because the law is an unconstitutional restriction on free speech.
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The city of Trenton, New Jersey, passed an ordinance making it unlawful to use any form of sound amplification on the city streets. Keller mounted a speaker on a truck. Through the speaker, he played music and spoke on a microphone while driving on city streets. Keller was convicted and fined $50. He appealed, arguing that the ordinance violated his rights of free speech and free assembly. The city claimed that the ordinance served a legitimate governmental function in keeping the city streets safe and orderly, and did not prohibit or unduly restrict any particular speech. The court probably found that the ordinance was
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constitutional as a reasonable restriction on fundamental rights.
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The FBI has an open criminal investigation regarding potential terrorist activities in the U.S. The agency wants to gain access to personal information through Internet activities of certain individuals. Congress has passed which of the following acts that allows the FBI to access this kind of information?
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USA Patriot Act
question

John operates a profitable business selling child pornography. His enterprise is likely to be:
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considered criminal
question

Congress passes a law that regulates the amount of lettuce that can be grown on a farm. Milton is a farmer who grows lettuce. He grows more lettuce than is allowed under the new law and is fined. He sues to have the law declared unconstitutional, arguing that he grew the allowed amount for sale and then grew some extra for his family to use in personal consumption. The federal courts are likely to:
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declare the law constitutional because Milton’s actions substantially affect interstate commerce.
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A Minnesota statute required all operators of slow-moving vehicles to display a fluorescent red triangular sign. Henderson, an adherent of the Amish religion, was charged with violating the statute. His defense was that the law violated his First Amendment right to freedom of religion because displaying “loud” colors on his slow-moving black buggy conflicted with his religious belief that he should remain separate from the modern world. Henderson stated that he was willing to display the sign if he could use silver, instead of red, reflective tape, which was equally effective. The state argued that the law applied to all equally. The court most likely found that the statute, as it applied to Henderson, was:
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unconstitutional under the free exercise clause.
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Ocean City passes an ordinance that prohibits all churches from meeting within its city limits. This rule affects the residents’ constitutional right to:
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substantive due process
question

In 1961, the Executive Director of the Planned Parenthood League of Connecticut was arrested and convicted of providing contraceptive information and materials to married people in violation of state law. The director appealed her conviction and the United States Supreme Court found that the law violated a constitutional right to privacy. The Constitution never mentions privacy, but the justices found that the right is embedded in several amendments. Which of the following is NOT one of those amendments?
answer

Eighth
question

The state of Michigan was in an economic crisis. The governor and legislature asked Congress to exempt Michigan’s citizens from their federal tax burden for two years. Does Congress have the authority to make the exemption?
answer

No, the taxing and spending clause requires that taxes be imposed uniformly throughout the United States
question

The town of Rock River decides to put a new road through the middle of town to increase tourist traffic. In order to build the road, they must tear down a number of buildings. They send a note to the building owners telling them to vacate the premises within 24 hours or their possessions will be destroyed when the buildings are torn down. It is likely that the town has violated which provision of the Constitution?
answer

The due process clause
question

Congress passes a law prohibiting cigars made in Cuba from being sold in the United States. The Florida state legislature then passes a law allowing the sale of Cuban cigars in Florida. If the constitutionality of the Florida law is challenged in court, it will most likely be:
answer

struck down on the basis of the supremacy clause.

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