1
Legal Environment of Business Questions with
Answers (100% Correct Answers)
You've decided to buy some rental property but know very little about the law
regarding landlord-tenant relations. You head to the local law library to do a
little research on the subject. The law librarian is extremely helpful, and with
his help, you have lots of reading material about landlord-tenant law! You
discover there are several kinds of law and that some laws are procedural and
other laws are substantive. What do you think procedural law covers? Answer:
The methods of enforcing the rights established by substantive law.
Under the common law, which of the following is true? Answer: In a case of
first impression, a judge may use persuasive authorities rather than precedents.
Historically, the common law developed from: Answer: the unification of local
customs and laws in feudal England.
The principle of stare decisis does which of the following? Answer: creates
predictability in the legal system
If a trial court judge is deciding an issue that has never come before the court (a
case of first impression), they: Answer: may create new precedent.
What is preemption in the Supremacy Clause? Answer: Federal law is supreme
over state law
In what situations does federal law preempt state law? Choose 2 answer
choices. Answer: When Congress passes a law and creates an agency to enforce
that law & When Congress passes very detailed laws
What situation would NOT be regulated by the federal government under the
Commerce Clause? Answer: A state requiring lawyers practicing in the state to
be licensed
,2
What authority does the federal government have under the Commerce
Clause? Choose 2 answer choices. Answer: To regulate international commerce
& To regulate commerce on the national and local levels.
What business speech is protected by the First Amendment? Answer: Some
types of advertising
What restrictions on business speech are allowed by the First Amendment?
Choose 2 answer choices. Answer: Limitations on advertisements for alcohol &
Some advertising venues for tobacco
In the United States, who creates federal statutory law? Answer: Congress
In the United States, who creates federal statutory law? Answer: State
legislatures
What is the lowest level of review by a court to determine whether a
government action unconstitutionally infringes on protected rights? Answer:
Rational Basis Review
What is the medium level of scrutiny, sometimes called heightened scrutiny,
that a court will use when deciding a case that involves a quasi-suspect class?
Answer: intermediate scrutiny
What is the system of government called in which states form a union and
share sovereign power with the central government of the union? Answer:
federalism
Which of the following is the provision of the U.S. Constitution that establishes
federal law precedence over state law? Answer: the supremacy clause
What is true of corporate political speech? Choose 2 answers. Answer: Political
donations are protected by the First Amendment as types of corporate political
speech. & Corporate political speech is protected by the First Amendment.
,3
What type of speech does not receive First Amendment protections? Choose 3
answers. Answer: speech that incites lawlessness, obscenity & threats to the
president of the United States
State statutory law is created by: Answer: elected members of the state
legislature.
What are the three levels of scrutiny used by courts to determine the
constitutionality of a government action? Choose 3 answers. Answer:
intermediate scrutiny, rational basis review & strict scrunity
You recently had an accident on the job. Some equipment fell on you causing a
serious injury, and your medical bills alone are likely to be over $85,000. You
claim an outside vendor who was working on the equipment that day created
the problem that caused the injury, and you want to sue. You live and work in
Texas, and the outside vendor is a resident of Oklahoma. Where do you think
you should file the lawsuit? Answer: in either federal or state court
Federal courts have exclusive subject matter jurisdiction over which of the
following? Choose 2 answer choices. Answer: Bankruptcies &
Patent/trademark/copyright cases
An arbitrator is different than a mediator because an arbitrator: Answer: has
the authority to make a binding award.
Which of the following are the TWO types of ADR that results in parties
voluntarily signing a settlement agreement rather than proceeding to trial?
Choose 2 answer choices. Answer: Mediation & Negotiation
Which of the following lists the steps of a trial in the correct chronological
order from beginning to end? Answer: Jury selection, opening statements,
plaintiff's case, defendant's case
What are two types of challenges an attorney can make during voir dire? (Select
2 answers) Answer: Peremptory challenges & Challenge for cause
, 4
Which of the following are reasons why a motion for a new trial might be
granted? (Select 3 answers) Answer: The trial was unfair, the judge committed
prejudicial error & excessive damages were awarded.
Granting a Motion for a J.N.O.V. means: Answer: the jury verdict was wrong
and so clearly against the weight of the evidence that no reasonable person
could have found as the jury did.
In contrast to federal courts, state courts have what kind of jurisdiction?
Answer: broad
What does venue refer to? Answer: geographic location of the court
Which branch of government has the authority to enact law? Answer:
legislative
The federal and most state judicial branches have at least these three levels in
the court system: Answer: trial court, intermediate appellate court, and highest
appellate court.
When the parties in a dispute present their arguments and evidence to a neutral
third party who then renders a decision, it is called: Answer: arbitration
The role of a mediator is to: Answer: assist parties in a dispute in resolving their
differences out of court.
What is a document called that is filed with the court to state the position of the
plaintiff or the defendant in a lawsuit and ask for relief from the court? Answer:
Pleading
After all pleadings are filed and discovery is completed, a party may ask the
judge to rule in their favor on the basis that there are no genuinely disputed
facts and the judge need only rule on the law. The motion asks the court for a:
Answer: Summary Judgement
What are the three steps of a civil trial? Choose 3 answers. Answer: Opening
arguments, closing arguments & presentation of testimony & evidence
Legal Environment of Business Questions with
Answers (100% Correct Answers)
You've decided to buy some rental property but know very little about the law
regarding landlord-tenant relations. You head to the local law library to do a
little research on the subject. The law librarian is extremely helpful, and with
his help, you have lots of reading material about landlord-tenant law! You
discover there are several kinds of law and that some laws are procedural and
other laws are substantive. What do you think procedural law covers? Answer:
The methods of enforcing the rights established by substantive law.
Under the common law, which of the following is true? Answer: In a case of
first impression, a judge may use persuasive authorities rather than precedents.
Historically, the common law developed from: Answer: the unification of local
customs and laws in feudal England.
The principle of stare decisis does which of the following? Answer: creates
predictability in the legal system
If a trial court judge is deciding an issue that has never come before the court (a
case of first impression), they: Answer: may create new precedent.
What is preemption in the Supremacy Clause? Answer: Federal law is supreme
over state law
In what situations does federal law preempt state law? Choose 2 answer
choices. Answer: When Congress passes a law and creates an agency to enforce
that law & When Congress passes very detailed laws
What situation would NOT be regulated by the federal government under the
Commerce Clause? Answer: A state requiring lawyers practicing in the state to
be licensed
,2
What authority does the federal government have under the Commerce
Clause? Choose 2 answer choices. Answer: To regulate international commerce
& To regulate commerce on the national and local levels.
What business speech is protected by the First Amendment? Answer: Some
types of advertising
What restrictions on business speech are allowed by the First Amendment?
Choose 2 answer choices. Answer: Limitations on advertisements for alcohol &
Some advertising venues for tobacco
In the United States, who creates federal statutory law? Answer: Congress
In the United States, who creates federal statutory law? Answer: State
legislatures
What is the lowest level of review by a court to determine whether a
government action unconstitutionally infringes on protected rights? Answer:
Rational Basis Review
What is the medium level of scrutiny, sometimes called heightened scrutiny,
that a court will use when deciding a case that involves a quasi-suspect class?
Answer: intermediate scrutiny
What is the system of government called in which states form a union and
share sovereign power with the central government of the union? Answer:
federalism
Which of the following is the provision of the U.S. Constitution that establishes
federal law precedence over state law? Answer: the supremacy clause
What is true of corporate political speech? Choose 2 answers. Answer: Political
donations are protected by the First Amendment as types of corporate political
speech. & Corporate political speech is protected by the First Amendment.
,3
What type of speech does not receive First Amendment protections? Choose 3
answers. Answer: speech that incites lawlessness, obscenity & threats to the
president of the United States
State statutory law is created by: Answer: elected members of the state
legislature.
What are the three levels of scrutiny used by courts to determine the
constitutionality of a government action? Choose 3 answers. Answer:
intermediate scrutiny, rational basis review & strict scrunity
You recently had an accident on the job. Some equipment fell on you causing a
serious injury, and your medical bills alone are likely to be over $85,000. You
claim an outside vendor who was working on the equipment that day created
the problem that caused the injury, and you want to sue. You live and work in
Texas, and the outside vendor is a resident of Oklahoma. Where do you think
you should file the lawsuit? Answer: in either federal or state court
Federal courts have exclusive subject matter jurisdiction over which of the
following? Choose 2 answer choices. Answer: Bankruptcies &
Patent/trademark/copyright cases
An arbitrator is different than a mediator because an arbitrator: Answer: has
the authority to make a binding award.
Which of the following are the TWO types of ADR that results in parties
voluntarily signing a settlement agreement rather than proceeding to trial?
Choose 2 answer choices. Answer: Mediation & Negotiation
Which of the following lists the steps of a trial in the correct chronological
order from beginning to end? Answer: Jury selection, opening statements,
plaintiff's case, defendant's case
What are two types of challenges an attorney can make during voir dire? (Select
2 answers) Answer: Peremptory challenges & Challenge for cause
, 4
Which of the following are reasons why a motion for a new trial might be
granted? (Select 3 answers) Answer: The trial was unfair, the judge committed
prejudicial error & excessive damages were awarded.
Granting a Motion for a J.N.O.V. means: Answer: the jury verdict was wrong
and so clearly against the weight of the evidence that no reasonable person
could have found as the jury did.
In contrast to federal courts, state courts have what kind of jurisdiction?
Answer: broad
What does venue refer to? Answer: geographic location of the court
Which branch of government has the authority to enact law? Answer:
legislative
The federal and most state judicial branches have at least these three levels in
the court system: Answer: trial court, intermediate appellate court, and highest
appellate court.
When the parties in a dispute present their arguments and evidence to a neutral
third party who then renders a decision, it is called: Answer: arbitration
The role of a mediator is to: Answer: assist parties in a dispute in resolving their
differences out of court.
What is a document called that is filed with the court to state the position of the
plaintiff or the defendant in a lawsuit and ask for relief from the court? Answer:
Pleading
After all pleadings are filed and discovery is completed, a party may ask the
judge to rule in their favor on the basis that there are no genuinely disputed
facts and the judge need only rule on the law. The motion asks the court for a:
Answer: Summary Judgement
What are the three steps of a civil trial? Choose 3 answers. Answer: Opening
arguments, closing arguments & presentation of testimony & evidence
