Business Law Final Exam Questions with 100%
Correct Answers.
Assume that Congress passes a law establishing a new administrative agency to
oversee cyberlaw issues. The agency writes rules to enable it to carry out its duties. The
rules written by the agency will be known as a part of
Commerce Clause
Constitutional Law
Administrative Law
Statutory Law - ANS Administrative Law
All of the cases that have been decided by U.S. judges, as well as by English judges
prior to the American Revolution, constitute a body of law known as
common law
statutory law
civil law
English law - ANS common law
Elaine is involved in a car accident where the other driver ran a red light. To determine
whether she has a case, her attorney would apply which of the following classifications
of law?
Substantive law
Administrative Law
Cyber law
Procedural law - ANS Substantive law
Case law decided by the Supreme Court is binding on federal but not state courts.
T/F - ANS F
State law supreme court decisions are binding on ALL of the state courts of the state
where the court is located.
T/F - ANS T
According to the text, when making decisions, the first thing a business should evaluate
is the __________ implications of each decision
Financial
Safety
Legal
Moral - ANS Legal
The social responsibility of business consists only of the expectations employees have
of their employers.
T/F - ANS F
,When making a business decision with ethical concerns, merely complying with the law
is referred to as the
Worst possible alternative
Substantial goodwill
Moral minimum
Compliance review - ANS Moral minimum
The Constitution and the United States Code with all of its Titles comprise all rules that
affect government, business and individuals.
T/F - ANS F
The primary source of authority for government regulation of business would be
The Declaration of Independence
Business Law A110, Orange Coast College
Supreme Court decisions
the Commerce Clause - ANS the Commerce Clause
Courts use a subjective standard when interpreting contracts so that they can
understand why a party entered into an agreement.
T/F - ANS F
John is a resident of Iowa. While driving through California, he has an accident involving
Marisol, a California resident. Marisol files a lawsuit in a California state court. Over
John, the California court has
in rem jurisdiction
no jurisdiction
in persona jurisdiction
concurrent - ANS in persona jurisdiction
What is required for federal court jurisdiction over a case?
Damages in excess of $75,000
State Supreme Court certification
Standing of the plaintiff
Diversity of citizenship - ANS Damages in excess of $75,000
Standing of the plaintiff
Diversity of citizenship
Charles loses his breach-of-contract case against Michelet, a California resident, in a
Georgia state trial court. Charles appeals to the state court of appeals. Losing again, he
files his next appeal with
US Supreme Court
the Georgia Supreme Court
US District Court in Georgia
California Supreme Court - ANS the Georgia Supreme Court
Tort and contract law are primarily state law. T/F - ANS T
, Whether or not a party has a claim against an attorney based on his malpractice in a
contract law matter is the same in all states since whether malpractice occurred is a
matter of federal, not state, law.
T/F - ANS F
Because the Supreme Court believes that courts can provide the best relief to plaintiffs,
it is reluctant to order parties into arbitration.
T/F - ANS F
In preparation for a trial between George and ABC Corporation, ABC's attorney places
George under oath and asks George questions that are recorded by a court reporter.
This is known as
an interrogatory
Request for Admissions
Void Dire
a deposition - ANS a deposition
The Supreme Court trend on the exercise of personal jurisdiction over out of state
defendants is that it is making it easier for plaintiffs to assert jurisdiction over out of state
defendants.
T/F - ANS F
The three primary branches of government include
Executive
Judicial
Military
Commercial
Legislative - ANS Executive
Judicial
Legislative
Jackson, a homeowner, files a lawsuit against Johnson, his construction contractor.
Prior to trial, they all meet with their attorneys to try to resolve their dispute before going
to trial. This proceeding is known as
Negotiation
Arbitration
Litigation
Mediation - ANS Negotiation
Arizona enacted a law prohibiting the manufacture and sale of cement manufactured
outside of Arizona that does not carry a label that the cement cannot be used in
government-funded or other large projects.
The requirement of the label, and the restriction of non-Arizona cement most likely
violate the
federalism mutuality of interest
Correct Answers.
Assume that Congress passes a law establishing a new administrative agency to
oversee cyberlaw issues. The agency writes rules to enable it to carry out its duties. The
rules written by the agency will be known as a part of
Commerce Clause
Constitutional Law
Administrative Law
Statutory Law - ANS Administrative Law
All of the cases that have been decided by U.S. judges, as well as by English judges
prior to the American Revolution, constitute a body of law known as
common law
statutory law
civil law
English law - ANS common law
Elaine is involved in a car accident where the other driver ran a red light. To determine
whether she has a case, her attorney would apply which of the following classifications
of law?
Substantive law
Administrative Law
Cyber law
Procedural law - ANS Substantive law
Case law decided by the Supreme Court is binding on federal but not state courts.
T/F - ANS F
State law supreme court decisions are binding on ALL of the state courts of the state
where the court is located.
T/F - ANS T
According to the text, when making decisions, the first thing a business should evaluate
is the __________ implications of each decision
Financial
Safety
Legal
Moral - ANS Legal
The social responsibility of business consists only of the expectations employees have
of their employers.
T/F - ANS F
,When making a business decision with ethical concerns, merely complying with the law
is referred to as the
Worst possible alternative
Substantial goodwill
Moral minimum
Compliance review - ANS Moral minimum
The Constitution and the United States Code with all of its Titles comprise all rules that
affect government, business and individuals.
T/F - ANS F
The primary source of authority for government regulation of business would be
The Declaration of Independence
Business Law A110, Orange Coast College
Supreme Court decisions
the Commerce Clause - ANS the Commerce Clause
Courts use a subjective standard when interpreting contracts so that they can
understand why a party entered into an agreement.
T/F - ANS F
John is a resident of Iowa. While driving through California, he has an accident involving
Marisol, a California resident. Marisol files a lawsuit in a California state court. Over
John, the California court has
in rem jurisdiction
no jurisdiction
in persona jurisdiction
concurrent - ANS in persona jurisdiction
What is required for federal court jurisdiction over a case?
Damages in excess of $75,000
State Supreme Court certification
Standing of the plaintiff
Diversity of citizenship - ANS Damages in excess of $75,000
Standing of the plaintiff
Diversity of citizenship
Charles loses his breach-of-contract case against Michelet, a California resident, in a
Georgia state trial court. Charles appeals to the state court of appeals. Losing again, he
files his next appeal with
US Supreme Court
the Georgia Supreme Court
US District Court in Georgia
California Supreme Court - ANS the Georgia Supreme Court
Tort and contract law are primarily state law. T/F - ANS T
, Whether or not a party has a claim against an attorney based on his malpractice in a
contract law matter is the same in all states since whether malpractice occurred is a
matter of federal, not state, law.
T/F - ANS F
Because the Supreme Court believes that courts can provide the best relief to plaintiffs,
it is reluctant to order parties into arbitration.
T/F - ANS F
In preparation for a trial between George and ABC Corporation, ABC's attorney places
George under oath and asks George questions that are recorded by a court reporter.
This is known as
an interrogatory
Request for Admissions
Void Dire
a deposition - ANS a deposition
The Supreme Court trend on the exercise of personal jurisdiction over out of state
defendants is that it is making it easier for plaintiffs to assert jurisdiction over out of state
defendants.
T/F - ANS F
The three primary branches of government include
Executive
Judicial
Military
Commercial
Legislative - ANS Executive
Judicial
Legislative
Jackson, a homeowner, files a lawsuit against Johnson, his construction contractor.
Prior to trial, they all meet with their attorneys to try to resolve their dispute before going
to trial. This proceeding is known as
Negotiation
Arbitration
Litigation
Mediation - ANS Negotiation
Arizona enacted a law prohibiting the manufacture and sale of cement manufactured
outside of Arizona that does not carry a label that the cement cannot be used in
government-funded or other large projects.
The requirement of the label, and the restriction of non-Arizona cement most likely
violate the
federalism mutuality of interest
