ASU - Koretz - LES 305 - Exam 2 questions and answers A+ Grade|Business
Law & Ethics Exam 2 Study Guide
No branch of government can exercise the authority of another branch. Also, each branch has some
power to limit the actions of the other two branches; this scheme creates a system of checks and
balances. - (ANSWER)TRUE.
You play football for the Tempe Moons, last year's winners of the Super Bowl. The Tempe Moons are a
member of the National Football League (NFL), a private organization. One requirement is that all NFL
players, coaches, and other members of the team stand and act in a dignified manner while the national
anthem is played before the game begins. You decide not to stand due to your religion. Other players are
members of your religion and they stand. The NFL suspends you from further play due to your failure to
stand. You want your job back. - (ANSWER)No constitutional rights have been violated since the NFL is a
private organization.*
Under the Commerce Clause, the federal government has the right to regulate any area of business -
(ANSWER)that affects interstate commerce.*
The United States Supreme Court determined that the Violence Against Women's Act exceeded
Congressional authority to regulate commerce under the Commerce Clause in U.S. v. Morrison because
violence is not an economic activity. - (ANSWER)TRUE
Ollie's Barbeque is a family-owned restaurant in Birmingham, Alabama with a seating capacity of 220
customers. It is located on a state highway which is 11 blocks from an interstate highway. A sign in the
restaurant provides that take-out service only is available for African Americans. Congress passed the
Civil Rights Act in 1964, which prohibited this type of discrimination. Ollie's purchases about $150,000
annually from a local restaurant supplier and 46% that amount is from out-of-state distributors. Will the
Commerce Clause permit the application of the Civil Rights Act to Ollie's? - (ANSWER)Yes. Ollie's
purchases a significant quantity of goods that originate out of state, so the discriminatory conduct
impacts interstate commerce.
What authority would the state of Arizona claim for passing a mandatory seat belt law requiring anyone
traveling in Arizona to put on his or her seat belt? - (ANSWER)Police Power
,ASU - Koretz - LES 305 - Exam 2 questions and answers A+ Grade|Business
Law & Ethics Exam 2 Study Guide
In January 2015, the Super Bowl was held at the University of Phoenix Stadium in Glendale, Arizona. The
state of Arizona could tax patrons who reside in states other than Arizona who are visiting Arizona hotels
at a rate that is higher than the tax rate assessed against patrons who are from Arizona. -
(ANSWER)False.
The requirements to impose a valid state tax that is levied upon goods originating out of state include -
(ANSWER)a. The tax cannot discriminate against interstate commerce.
b. The tax cannot be an undue burden on interstate commerce.
c. There must be a "sufficient nexus" between the state and the business being taxed [Examples: Does
business there, holds property titles there, manufactures there, inventory stored there]
d. The tax must be apportioned fairly.
e. All of the above are correct.*
Pen Corporation is a Delaware corporation with offices and warehouses in Arizona and California. Pen
owns no property in North Carolina and has no employees in North Carolina. Pen sells office supplies via
catalog. North Carolina imposed a retail use tax on Pen on sales to North Carolina residents. Is this tax
valid? - (ANSWER)Yes. Pen purposefully directed its activities at North Carolina and could be required to
pay taxes
LL Bean has warehouse facilities in Maine, Nevada, Washington, Idaho, Utah, and North Dakota. -
(ANSWER)Any state in which LL Bean has warehouses can tax LL Bean on the inventory in that particular
state
One of the issues that courts review to determine whether a federal law preempts a state law is whether
the federal government expresses a desire to be the exclusive regulator in this arena. - (ANSWER)TRUE.
The state of Wyoming has just passed a law requiring all cars entering the state to be equipped with side
air bags. The federal government has expressed its desire to preempt any state laws relating to
automobile safety equipment. Therefore, the Wyoming requirement: - (ANSWER)is preempted by the
federal requirement
, ASU - Koretz - LES 305 - Exam 2 questions and answers A+ Grade|Business
Law & Ethics Exam 2 Study Guide
The federal government passed several laws prohibiting the production, sale and consumption of alcohol
for non-medicinal purposes. The legislation specifically allowed and encouraged states to pass laws
prohibiting the consumption of alcoholic beverages. If a state did pass laws prohibiting the sale of
alcohol on Sundays, then - (ANSWER)The federal law and the state laws will both be valid
The Arizona Employer Sanctions Law requires Arizona businesses to verify a prospective worker's legal
status using the E-Verify system before hiring the worker. The federal Immigration Reform and Control
Act requires employers to collect identification information and submit a completed I-9 form to the
government for new hires. What is the likely reason that the federal and state law are both enforceable?
This is because - (ANSWER)The federal government did not express a desire to be the sole regulator of
worker employment verification so the state government may also regulate
In January 2010, the Arizona Senate approved a bill to strengthen immigration enforcement laws by
making it a crime to be in Arizona illegally or to transport or conceal an undocumented immigrant. It also
seeks to curb day-labor employment by making it a crime for an undocumented immigrant to solicit
work in a public place or for anyone to hire someone from a vehicle. There are a number of federal laws
that also prohibit hiring undocumented workers. What arguments are legally valid in favor of the federal
law preempting state law? - (ANSWER)The issue is more easily regulated by one central government
body
An Arizona law that requires beer that is produced in California to undergo numerous tests for health
and safety purposes will be upheld if beer produced in Arizona does not need to undergo the same tests.
- (ANSWER)FALSE.
Where in the U.S. Constitution are the provisions governing a student's right to a hearing prior to
suspension from a public school? - (ANSWER)Due Process Clause
The First Amendment prohibits state regulation of false advertising - (ANSWER)FALSE
If you work for a large corporation that has a policy prohibiting employees from making negative
comments on social media about the company's business practices, then this is a Constitutional
violation. - (ANSWER)FALSE
Law & Ethics Exam 2 Study Guide
No branch of government can exercise the authority of another branch. Also, each branch has some
power to limit the actions of the other two branches; this scheme creates a system of checks and
balances. - (ANSWER)TRUE.
You play football for the Tempe Moons, last year's winners of the Super Bowl. The Tempe Moons are a
member of the National Football League (NFL), a private organization. One requirement is that all NFL
players, coaches, and other members of the team stand and act in a dignified manner while the national
anthem is played before the game begins. You decide not to stand due to your religion. Other players are
members of your religion and they stand. The NFL suspends you from further play due to your failure to
stand. You want your job back. - (ANSWER)No constitutional rights have been violated since the NFL is a
private organization.*
Under the Commerce Clause, the federal government has the right to regulate any area of business -
(ANSWER)that affects interstate commerce.*
The United States Supreme Court determined that the Violence Against Women's Act exceeded
Congressional authority to regulate commerce under the Commerce Clause in U.S. v. Morrison because
violence is not an economic activity. - (ANSWER)TRUE
Ollie's Barbeque is a family-owned restaurant in Birmingham, Alabama with a seating capacity of 220
customers. It is located on a state highway which is 11 blocks from an interstate highway. A sign in the
restaurant provides that take-out service only is available for African Americans. Congress passed the
Civil Rights Act in 1964, which prohibited this type of discrimination. Ollie's purchases about $150,000
annually from a local restaurant supplier and 46% that amount is from out-of-state distributors. Will the
Commerce Clause permit the application of the Civil Rights Act to Ollie's? - (ANSWER)Yes. Ollie's
purchases a significant quantity of goods that originate out of state, so the discriminatory conduct
impacts interstate commerce.
What authority would the state of Arizona claim for passing a mandatory seat belt law requiring anyone
traveling in Arizona to put on his or her seat belt? - (ANSWER)Police Power
,ASU - Koretz - LES 305 - Exam 2 questions and answers A+ Grade|Business
Law & Ethics Exam 2 Study Guide
In January 2015, the Super Bowl was held at the University of Phoenix Stadium in Glendale, Arizona. The
state of Arizona could tax patrons who reside in states other than Arizona who are visiting Arizona hotels
at a rate that is higher than the tax rate assessed against patrons who are from Arizona. -
(ANSWER)False.
The requirements to impose a valid state tax that is levied upon goods originating out of state include -
(ANSWER)a. The tax cannot discriminate against interstate commerce.
b. The tax cannot be an undue burden on interstate commerce.
c. There must be a "sufficient nexus" between the state and the business being taxed [Examples: Does
business there, holds property titles there, manufactures there, inventory stored there]
d. The tax must be apportioned fairly.
e. All of the above are correct.*
Pen Corporation is a Delaware corporation with offices and warehouses in Arizona and California. Pen
owns no property in North Carolina and has no employees in North Carolina. Pen sells office supplies via
catalog. North Carolina imposed a retail use tax on Pen on sales to North Carolina residents. Is this tax
valid? - (ANSWER)Yes. Pen purposefully directed its activities at North Carolina and could be required to
pay taxes
LL Bean has warehouse facilities in Maine, Nevada, Washington, Idaho, Utah, and North Dakota. -
(ANSWER)Any state in which LL Bean has warehouses can tax LL Bean on the inventory in that particular
state
One of the issues that courts review to determine whether a federal law preempts a state law is whether
the federal government expresses a desire to be the exclusive regulator in this arena. - (ANSWER)TRUE.
The state of Wyoming has just passed a law requiring all cars entering the state to be equipped with side
air bags. The federal government has expressed its desire to preempt any state laws relating to
automobile safety equipment. Therefore, the Wyoming requirement: - (ANSWER)is preempted by the
federal requirement
, ASU - Koretz - LES 305 - Exam 2 questions and answers A+ Grade|Business
Law & Ethics Exam 2 Study Guide
The federal government passed several laws prohibiting the production, sale and consumption of alcohol
for non-medicinal purposes. The legislation specifically allowed and encouraged states to pass laws
prohibiting the consumption of alcoholic beverages. If a state did pass laws prohibiting the sale of
alcohol on Sundays, then - (ANSWER)The federal law and the state laws will both be valid
The Arizona Employer Sanctions Law requires Arizona businesses to verify a prospective worker's legal
status using the E-Verify system before hiring the worker. The federal Immigration Reform and Control
Act requires employers to collect identification information and submit a completed I-9 form to the
government for new hires. What is the likely reason that the federal and state law are both enforceable?
This is because - (ANSWER)The federal government did not express a desire to be the sole regulator of
worker employment verification so the state government may also regulate
In January 2010, the Arizona Senate approved a bill to strengthen immigration enforcement laws by
making it a crime to be in Arizona illegally or to transport or conceal an undocumented immigrant. It also
seeks to curb day-labor employment by making it a crime for an undocumented immigrant to solicit
work in a public place or for anyone to hire someone from a vehicle. There are a number of federal laws
that also prohibit hiring undocumented workers. What arguments are legally valid in favor of the federal
law preempting state law? - (ANSWER)The issue is more easily regulated by one central government
body
An Arizona law that requires beer that is produced in California to undergo numerous tests for health
and safety purposes will be upheld if beer produced in Arizona does not need to undergo the same tests.
- (ANSWER)FALSE.
Where in the U.S. Constitution are the provisions governing a student's right to a hearing prior to
suspension from a public school? - (ANSWER)Due Process Clause
The First Amendment prohibits state regulation of false advertising - (ANSWER)FALSE
If you work for a large corporation that has a policy prohibiting employees from making negative
comments on social media about the company's business practices, then this is a Constitutional
violation. - (ANSWER)FALSE
