Business Law Exam 1 Kent Moore Tntech

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Under the authority of a long arm statute, a court cannot exercise personal jurisdiction over certain out-of-state defendants.
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False
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The minimum-contacts requirement is usually met if a corporation advertises or sells its products within a state.
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True
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A court of appeals always hears new evidence.
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False
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A Maryland state court can exercise jurisdiction over National Insurance Corporation, an out-of-state company, if the firm has
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minimum contacts with the state
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Jenna files a civil suit against Keshia. To succeed, Jenna must prove her case
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by a preponderance of the evidence.
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Litigation is the process of resolving a dispute through arbitration.
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False
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Most states do not enforce agreements to arbitrate disputes between private parties.
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False
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An arbitrator’s award may be set aside if the arbitrator accepted a bribe.
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True
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Lorena files a suit against Milton. Before going to trial, the parties, with their attorneys, meet to try to resolve their dispute. A third party suggests or proposes a resolution, which the parties may or may not decide to adopt. This is
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mediation.
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HoneyBee Foods, Inc., in Illinois, and Jelly Roll Pastries, in Kentucky consent to have their dispute resolved in arbitration according to the law of Illinois. This is a ground for a court to
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compel arbitration.
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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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Under the U.S. Constitution, the executive branch makes the laws.
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False
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Under the supremacy clause, a valid federal statute or regulation will take precedence over a conflicting state or local law or regulation on the same general subject.
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True
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The Bill of Rights protects individuals, but not business entities, against various types of interference by the government.
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False
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A law that prohibits or inhibits only some persons from exercising a fundamental right will be subject to “rational basis” by the courts
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False
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The Constitution sets forth specific powers that can be exercised by the national government and provides that the national government has the implied power to undertake actions necessary to carry its expressly designated powers. Under the Tenth Amendment, all other powers are expressly reserved to
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the states.
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Savers Mart, Inc., distributes its merchandise on an interstate basis. Under the commerce clause, Congress has the power to regulate
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any commercial activity in the United States.
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Mariah creates a t-shirt design that expresses support for Nathan, a presidential candidate, and distributes t-shirts imprinted with the design to her friends. The t-shirts are an example of
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symbolic speech.
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Congress enacts the Ad Restriction Act (ARA) to limit advertising in certain circumstances. The ARA will be considered valid if it directly advances a substantial government interest
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and goes no further than necessary to achieve its purpose.
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Like statutes, administrative regulations have a binding effect.
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True
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When the meaning of a statute’s language is unclear and an agency interprets it, a court need generally should follow the interpretation if it is a reasonable interpretation.
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True
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Warrants are required to conduct administrative searches in all highly regulated industries.
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False
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Armando is a witness in a controversy involving the U.S. Bureau of Tobacco and Firearms. Armando 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 U.S. Food Safety and Inspection Service conducts searches of certain businesses. This agency and other administrative agencies can conduct warrantless searches in
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highly regulated industries.
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In a criminal case, the state must prove its case by a preponderance of the evidence.
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False
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The sanctions imposed on criminal wrongdoers are the same as those applied in civil cases.
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False
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One element that normally must exist for a person to be convicted of a crime is the performance of a prohibited act.
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True
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The crime of theft requires only the taking of another person’s property, not the awareness that the property belongs to another.
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False
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The only defense to criminal liability that justifies the use of force is self-defense.
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False
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For most crimes, the state must initiate prosecution within a certain number of years after the crime occurs.
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True
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Under the Fourth Amendment, general searches through a person’s belongings are permissible.
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False
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If a person in custody is to be subjected to interrogation, he or she must first be informed in clear and unequivocal terms that he or she has the right to remain silent.
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True
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Reno, driving while intoxicated, causes a car accident that results in the death of Santo. Reno is arrested and charged with a felony. A felony is a crime punishable by death or imprisonment for
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more than one year.
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Skip is accused of a crime. Skip can refuse to provide information about his allegedly criminal activities
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if he suspects the information will be used to prosecute him.
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Klay arrests Leonida on suspicion of embezzlement. According to the United States Supreme Court in Case 7.3, Miranda v. Arizona, Leonida must be apprised of certain constitutional rights
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prior to any police interrogation.
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Fresh Harvest Company, which is based on Georgia, packages and sells vegetables. Hayden, who is a resident of Indiana, buys a Fresh Harvest product, eats it, and suffers severe food poisoning. Hayden wants to file a suit against Fresh Harvest. The diversity of citizenship between these parties means that
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federal and state courts have concurrent jurisdiction.
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Lewis wants to file a suit against Mikayla. Before any court can hear the case
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the court must have jurisdiction.
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Marcus files a suit against Naomi in an Ohio state court. Naomi’s only connection to Ohio is an ad on the Web originating in Pennsylvania. For Ohio to exercise jurisdiction, the issue is whether Naomi, through her ad, has
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conducted substantial business with Ohio residents.
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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, the appellate court will hear
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none of the evidence.
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Milo files a suit against Otis. At the trial, each party’s attorney presents the party’s case before a judge who hears the dispute and renders a legally binding decision. This is
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litigation.
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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. Price-Lo Mart files a suit to block the law’s enforcement. The court would likely hold that this law violates
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the free exercise clause.
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Keralyn creates a Web site to post threatening messages about celebrities. The First Amendment protects such speech
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none of the time.
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Jon, a law enforcement official, monitors Kelsey’s Internet activities—e-mail and Web site visits—to gain access to her personal financial data and student information. This may violate Kelsey’s right to
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privacy.
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Many of the rights contained in the Bill of Rights now apply as restrictions against the states because of “incorporation” through the 14th Amendment.
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True
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If a police officer asks you a question, you are required to answer.
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False
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A subpoena for documents arrives at your business office demanding certain business documents (some that potentially incriminate you) be turned over.
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You do not have a privilege against self incrimination in this matter and must turn the documents over.
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These two provisions of the US Constitution have had the most impact on business.
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The interstate commerce clause and the 16th Amendment
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The exclusionary rule, when evidence is excluded from trial because it was discovered in violation of the 4th, 5th or 6th Amendment, is a rule found in the text of the US Constitution.
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False
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The words “right to privacy” are found in the 4th Amendment of the US Constitution.
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False
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The two general elements of any crime are:
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mens rea and actus reus

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