BUSINESS LAW 1: MIDTERM EXAM
QUESTIONS AND ANSWERS
Jurisdiction - Correct Answers -The power to speak law.
In Personam Jurisdiction - Correct Answers -Personal Jurisdiction over any person or
business that resides in a certain geographic area.
In Rem Jurisdiction - Correct Answers -Jurisdiction over one thing.
Venue - Correct Answers -Concerned with the most appropriate location for a trial.
Supremacy Clause - Correct Answers -Provides that the Constitution, laws, and the
treaties of the United States are "the Supreme Law of the Land."
Damages - Correct Answers -Money sought as a remedy for a breach of contract or for
a tortious act.
Injunctive Relief - Correct Answers -a court-ordered act or prohibition against an act or
condition which has been requested, and sometimes granted, in a petition to the court
for an injunction. Such an act is the use of judicial (court) authority to handle a problem,
and is not a judgment for money. Whether the relief will be granted is usually argued by
both sides in a hearing rather than in a full-scale trial, although sometimes it is part of a
lawsuit for damages and/or contract performance. Historically, the power to grant
injunctive relief stems from English equity courts rather than damages from law courts.
Common Law - Correct Answers -A body of general rules that applied throughout the
entire english realm.
Equity - Correct Answers -A branch of Law, founded on what might be described as
notions of justice and fair dealing.
Stare Decis - Correct Answers -A common law doctrine under which judges are
obligated to follow the precedents established in prior decisions.
Diversity Jurisdiction - Correct Answers -(Diversity of Citizenship) This term applies
whenever a federal court has jurisdiction over a case that does not involve a question of
federal law.
Negotiation - Correct Answers -In regard to dispute settlement (Alternative Dispute
Resolution), a process in which parties attempt to settle their dispute without going to
court, with or without attorneys to represent them. Also, in regard to instruments, the
, transfer of an instrument in such a way that the transferee (the person to whom the
instrument is transferred) becomes a holder.
Mediation - Correct Answers -A method of settling disputes outside of court by using the
services of a neutral third party, called a mediator. the mediator acts as a
communicating agent between the parties and suggests ways in which the parties can
resolve their dispute.
Arbitration - Correct Answers -The settling of a dispute by submitting it to a disinterested
third party (other than a court), who renders a decision. The decision may or may not be
legally binding.
Contingency - Correct Answers -An attorney's fee that is based on a percentage of the
final award received by his or her client as a result of litigation.
Complaint - Correct Answers -The pleading made by a plaintiff alleging wrongdoing on
the part of the defendant; the comment that, when filed with a court, initiates a lawsuit.
Equal Protection - Correct Answers -The provision in the Fourteenth Amendment to the
Constitution that guarantees that no state will "deny to any person within its jurisdiction
the equal protection of the laws." This clause mandates that state governments treat
similarly situated individuals in a similar manner.
Due Process - Correct Answers -The provisions of the Fifth and Fourteenth
Amendments to the Constitution that guarantee that no person shall be deprived of life,
liberty, or property without due process of law. Similar clauses are found in most state
constitutions.
Cost Benefit Analysis - Correct Answers -A decision-making technique that involves
weighing the costs of a given action against the benefits of the action.
Duty Based Ethics - Correct Answers -Often are derived from revealed truths, such as
religious precepts. They can also be derived through philosophical reasoning.
Utilitarianism - Correct Answers -An approach to ethical reasoning in which ethically
correct behavior is not related to any absolute ethical or moral values but to an
evaluation of the consequences of a given action on those who will be affected by it. iIn
utilitarian reasoning, a "good" decision is one that results in the greatest good for the
greatest number of people affected by the decision.
Unpublished Court Opinions - Correct Answers -Unpublished opinion refers to an
opinion that the court has specifically designated as not for publication. These types of
cases are not available for citation as precedent because the judges making the opinion
deem the case as "less important". They are considered binding only on the parties to
the particular case in which it is issued. These are state specific court rules prohibiting
citing of an unpublished opinion as authority.
QUESTIONS AND ANSWERS
Jurisdiction - Correct Answers -The power to speak law.
In Personam Jurisdiction - Correct Answers -Personal Jurisdiction over any person or
business that resides in a certain geographic area.
In Rem Jurisdiction - Correct Answers -Jurisdiction over one thing.
Venue - Correct Answers -Concerned with the most appropriate location for a trial.
Supremacy Clause - Correct Answers -Provides that the Constitution, laws, and the
treaties of the United States are "the Supreme Law of the Land."
Damages - Correct Answers -Money sought as a remedy for a breach of contract or for
a tortious act.
Injunctive Relief - Correct Answers -a court-ordered act or prohibition against an act or
condition which has been requested, and sometimes granted, in a petition to the court
for an injunction. Such an act is the use of judicial (court) authority to handle a problem,
and is not a judgment for money. Whether the relief will be granted is usually argued by
both sides in a hearing rather than in a full-scale trial, although sometimes it is part of a
lawsuit for damages and/or contract performance. Historically, the power to grant
injunctive relief stems from English equity courts rather than damages from law courts.
Common Law - Correct Answers -A body of general rules that applied throughout the
entire english realm.
Equity - Correct Answers -A branch of Law, founded on what might be described as
notions of justice and fair dealing.
Stare Decis - Correct Answers -A common law doctrine under which judges are
obligated to follow the precedents established in prior decisions.
Diversity Jurisdiction - Correct Answers -(Diversity of Citizenship) This term applies
whenever a federal court has jurisdiction over a case that does not involve a question of
federal law.
Negotiation - Correct Answers -In regard to dispute settlement (Alternative Dispute
Resolution), a process in which parties attempt to settle their dispute without going to
court, with or without attorneys to represent them. Also, in regard to instruments, the
, transfer of an instrument in such a way that the transferee (the person to whom the
instrument is transferred) becomes a holder.
Mediation - Correct Answers -A method of settling disputes outside of court by using the
services of a neutral third party, called a mediator. the mediator acts as a
communicating agent between the parties and suggests ways in which the parties can
resolve their dispute.
Arbitration - Correct Answers -The settling of a dispute by submitting it to a disinterested
third party (other than a court), who renders a decision. The decision may or may not be
legally binding.
Contingency - Correct Answers -An attorney's fee that is based on a percentage of the
final award received by his or her client as a result of litigation.
Complaint - Correct Answers -The pleading made by a plaintiff alleging wrongdoing on
the part of the defendant; the comment that, when filed with a court, initiates a lawsuit.
Equal Protection - Correct Answers -The provision in the Fourteenth Amendment to the
Constitution that guarantees that no state will "deny to any person within its jurisdiction
the equal protection of the laws." This clause mandates that state governments treat
similarly situated individuals in a similar manner.
Due Process - Correct Answers -The provisions of the Fifth and Fourteenth
Amendments to the Constitution that guarantee that no person shall be deprived of life,
liberty, or property without due process of law. Similar clauses are found in most state
constitutions.
Cost Benefit Analysis - Correct Answers -A decision-making technique that involves
weighing the costs of a given action against the benefits of the action.
Duty Based Ethics - Correct Answers -Often are derived from revealed truths, such as
religious precepts. They can also be derived through philosophical reasoning.
Utilitarianism - Correct Answers -An approach to ethical reasoning in which ethically
correct behavior is not related to any absolute ethical or moral values but to an
evaluation of the consequences of a given action on those who will be affected by it. iIn
utilitarian reasoning, a "good" decision is one that results in the greatest good for the
greatest number of people affected by the decision.
Unpublished Court Opinions - Correct Answers -Unpublished opinion refers to an
opinion that the court has specifically designated as not for publication. These types of
cases are not available for citation as precedent because the judges making the opinion
deem the case as "less important". They are considered binding only on the parties to
the particular case in which it is issued. These are state specific court rules prohibiting
citing of an unpublished opinion as authority.
