TF B

Flashcard maker : Lily Taylor
Laws and government regulations affect almost all business activities.
T
The U.S. Constitution is the basis of all law in the United States.
T
The U.S. Constitution reserves to the federal government all powers not granted to the states.
F
The Uniform Commercial Code has been adopted in all fifty states.
T
Federal agency regulations take precedence over conflicting state agency regulations.
T
Common law is a term for the laws that are familiar to most of us.
F
Decisions by higher courts are not binding on lower courts.
F
Stare decisis is a doctrine obligating judges to help persons who have failed to protect their own rights.
F
Courts are not obligated to follow precedents.
F
In most legal controversies, there is one single correct result.
F
Although cases may be similar, no two cases are ever identical in all respects.
T
Each judge had his or her personal beliefs and philosophy, which shape the legal reasoning process.
T
Clearly, a judge’s function is to make the laws.
F
The courts, in interpreting statutory law, often rely on the common law as a guide to what the legislators intended.
T
A jury’s good sense and careful consideration of consequences is known as jurisprudence.
F
Procedural law consists of all laws that outline the methods of enforcing rights.
T
B17. A citation identifies the publication in which a legal authority can be found.
T
B18. The decisions made by the courts establish the boundaries of the law as it applies to almost all business relationships.
T
B19. The party against whom a lawsuit is brought is the plaintiff or petitioner.
F
B20. When all the judges (or justices) agree on a decision, a majority opinion is written for the entire court.
F
Laws would be meaningless without the courts to interpret and apply them.
T
The federal courts are superior to the state courts.
F
Because corporations are not considered legal persons, courts use different principles to determine whether it is fair to exercise jurisdiction over a corporation.
F
Under the authority of a long arm statute, a court can exercise personal jurisdiction over certain out-of-state defendants.
T
B5. A court can exercise jurisdiction over property that is located within its boundaries.
T
B7. The minimum-contacts requirement is usually met if a corporation advertises or sells its products within a state.
T
B6. For purposes of diversity of citizenship, a corporation is a citizen only of the state in which its principal place of business is located.
F
To have standing to sue, a party must have complaining sufficient stake in a matter to justify seeking relief through the court system.
T
Small claims courts are inferior trial courts.
T
Courts of appeals conduct new trials in which evidence is submitted to the court and witnesses are examined.
F
U.S. district courts have concurrent jurisdiction with state courts in matters involving federal questions.
F
The United States Supreme Court can review any case decided by any of the federal courts of appeals.
T
Litigation is the process of resolving a dispute through the court system.
T
In mediation, the mediator proposes a solution and makes a decision resolving the dispute.
F
A court’s review of an arbitrator’s award may be restricted.
T
Mandatory arbitration clauses in employment contracts are generally enforceable.
T
A mini-trial is a private proceeding in which each party’s attorney argues the party’s case before the other party.
T
The verdict in a summary jury trial is not binding.
T
International treaties never stipulate arbitration for resolving disputes.
F
The United States will not enforce a foreign court’s decision.
F
In a federal form of government, the national government does not share sovereign power with the states.
F
The term police powers encompasses just the enforcement of criminal laws.
F
The full faith and credit clause prevents a state from imposing unreasonable burdens on citizens of another, particularly with regard to means of doing business.
F
The checks and balances in the U.S. Constitution prevent any one branch of government from exercising too much power.
T
Under the U.S. Constitution, the judicial branch interprets the laws.
T
The states can establish laws and regulations that would interfere with trade and commerce among themselves.
F
The breadth of the commerce clause permits the government to legislate only in areas in which Congress has explicitly been granted power.
F
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.
T
Congress may tax some states and exempt others.
F
The Bill of Rights protects individuals, but not business entities, against various types of interference by the government.
F
Traditionally, the courts have protected the right to free speech to the fullest extent possible.
T
Expression—oral, written, or symbolized by conduct—is not subject to restrictions.
F
According to the United States Supreme Court, the First Amendment prevents limits from being placed on independent political expenditures by corporations.
T
The First Amendment does not require a complete separation of church and state.
T
To obtain a search warrant, law enforcement officers must convince a judge that they have reasonable grounds to believe a search will reveal evidence of a specific illegality.
T
Generally, government inspectors do not have the right to enter business premises without a warrant.
T
Substantive due process limits what the government can do in its legislative and executive capacities.
T
A law that prohibits or inhibits only some persons from exercising a fundamental right will be subject to “strict scrutiny” by the courts.
T
Pretexting is the process of obtaining information by false means.
T
State laws protect individuals’ privacy rights, often to a significant degree.
T
A familiar example of an agent is the owner of a corporation.
F
Agency relationships do not permeate the business world.
F
The term fiduciary is at the heart of agency law.
T
Through agents, a principal can conduct only one business operation at a time.
F
If work is usually done under the employer’s direction, this indicates independent-contractor status.
T
If a great degree of skill is required, this may indicate that a person is an employee hired for a specialized job and not an independent contractor.
F
Whether a worker is an employee or an independent contractor has no effect on the employer’s liability for the worker’s actions.
F
Employers can avoid certain tax liabilities by hiring independent contractors instead of employees.
T
Any copyrighted work created by an employee within the scope of his or her employment at the request of the employer is a “work for hire.”
T
An agency agreement can be implied by conduct.
T
An agency relationship created for a purpose that is contrary to public policymay still be enforceable.
F
A person must have contractual capacity to be an agent.
F
Ratification involves a question of intent, and intent can be expressed only by words.
F
An agency by estoppel arises when the principal’s actins have created the appearance of an agency that does not in fact exist.
T
Generally, the law assumes that the principal is aware of any information acquired by the agent that is relevant to the agency.
T
An agent can represent two principals in the same transaction as long as neither of them knows about it.
F
Even during emergency situations, when the principal cannot be consulted, the agent may not deviate from the principal’s instructions without violating the duty
f obedience.
F
A principal has a duty to cooperate with the agent and to assist the agent in performing his or he duties.
T
The agent has the right to be compensated, to be reimbursed and indemnified, and to have a safe working environment.
T
Anything that an agent obtains by virtue of the employment or agency relationship is his or hers to keep.
F
An executive officer of a corporation normally can conduct ordinary business transactions without obtaining written authority from the corporation.
T
The equal dignity rule requires that if a contract entered into by an agent is in writing, the principal, must honor it
F
A special power of attorney permits an agent to transact all business for a principal.
F
An agent has the implied authority to do what is reasonably necessary to accomplish the objectives of the agency.
T
An agent’s implied authority can be implied by custom.
T
An agent’s authority to act on behalf of a principal must be apparent to be real.
F
Apparent authority usually comes into existence through a principal’s pattern of conduct over time.
T
A principal’s ratification of an agent’s unauthorized act must be express.
F
A principal cannot be estopped from denying that an agent has authority.
F
If a principal ratifies a contract without knowing all of the facts, the principal can rescind the contract.
T
A principal whose identity is totally known by a third party with whom an agent contracts on the principal’s behalf is an undisclosed principal.
F
A disclosed principal is liable to a third party for a contract made by the agent acting within the scope of his or her authority.
T
A partially disclosed principal is only partially liable to a third party for a contract made by an agent.
F
An undisclosed principal is not liable to a third party for a contract made by an agent.
F
A principal is always directly responsible for an agent’s misrepresentation made within the scope of the agent’s authority.
T
Under the doctrine of respondeat superior, a principal may be liable for any harm that his or her agent causes to a third party.
T
A principal or employer normally is not liable for an agent’s crime even if the crime was committed within the scope of authority or employment.
T
An employer is charged with the knowledge of any dangerous condition discovered by an employee and pertinent to the employment situation.
T
B19. If either the principal or the agent petitions for bankruptcy, the agency is not usually terminated.
F
When the parties terminate an agency, it is the principal’s duty to notify any third parties who know of the existence of the agency that it has been terminated.
T

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