Business Law Exam Ch. 1,3,4,5 – Perkins Questions
and Correct Answers.
Describe the Court systems of the Federal and State Judiciary? Be able to explain the
levels of court (including the three levels of Federal Court) - ANS - A court may render a
binding decision only when it has jurisdiction over the dispute and the parties to dispute;
that is, when it has a right to hear and make a judgement in a case
- Judges in Federal court are appointed for life by president, subject to confirmation by
senate
-Federal Court has three main levels
Federal Court - District Courts, Court of Appeals, The Supreme Court, Special Courts
- CHECK PAPER
State Courts - inferior trial courts, trial courts, appellate courts
What does the due process clause of the 5th and 14th amendments prohibit? - ANS
They prohibit the federal and state government from depriving any person of life, liberty,
or property without due process of law.
What does the 1st amendment protect? - ANS The 1st amendment protects Free
Speech but it’s not absolute. Some forms of speech are not protected (such as
obscenity). It includes Corporate Political Speech, Defamation, and Commercial Speech
Corporate Political Speech - ANS a corporation right to speak out on political issues
Commercial Speech - ANS expression related to the economic interests of the speaker
and its audience; receives a lesser degree of protection
Defamation - ANS civil wrong or tort that diminishes a person's reputation by publishing
a false statement, receives limited constitutional protection.
What does the Commerce Clause do? - ANS The U.S. Supreme Court interprets the
Commerce Clause as virtually complete power to Congress to regulate the economy
and business (general welfare of the nation)
What is Equal Protection and what does it require in regards to the treatment of people?
- ANS It requires that similarly situated persons be treated similarly by governmental
actions. It involves rational relationship test, strict scrutiny test, and intermediate test.
Rational Relationship Test - ANS requires that the classification conceivably bear some
rational relationship to a legitimate government interest.
Strict Scrutiny Test - ANS exacting standard of review applicable to regulation affecting
a fundamental right or involving a suspect classification
, Intermediate Test - ANS standard or review for regulation based on gender and
legitimacy
What are the three branches of government? - ANS The three branches of government
are Legislative, Executive, and Judicial
Legislative - ANS makes laws
Executive - ANS enforces Laws
Judicial - ANS interprets laws
What is the principle of "Separation of Powers"? - ANS allocation of powers among
executive, legislative, and judicial branches of government
Describe Jurisdiction (different types, also look at in persona and in rem) - ANS
Jurisdiction is the power or authority of a court to hear and decide a given case.
Different types: Subject Matter Jurisdiction (which involves Exclusive Federal
Jurisdiction and Concurrent Federal Jurisdiction, and Exclusive State Jurisdiction), In
Persona Jurisdiction, In Rem Jurisdiction, Attachment Jurisdiction, Venue
Subject Matter Jurisdiction - ANS Authority of a court to judge a controversy of a
particular kind of case. It includes Exclusive Federal Jurisdiction and Concurrent
Jurisdiction and Exclusive State Jurisdiction
Exclusive Federal Jurisdiction - ANS Federal jurisdiction is exclusive only if Congress so
provides, either explicitly or implicitly
Concurrent Federal Jurisdiction - ANS Federal jurisdiction is concurrent with state
jurisdiction in cases of federal questions (unless there is exclusive federal jurisdiction)
and in diversity cases.
- Diversity of Citizenship: Plaintiffs and defendants from different states and amount in
controversy is over $75,000 or Foreign country brings suit against US citizens, or is Suit
between US citizens and citizens of a foreign country.
Exclusive State Jurisdiction - ANS jurisdiction over all other (non-federal) matters.
In Persona Jurisdiction - ANS Based upon claims against a person, in contrast to
jurisdiction over the person's property. Most state have adopted long arm statutes
In Rem Jurisdiction - ANS based on claims against property
Attachment Jurisdiction - ANS jurisdiction over a defendant's property to obtain payment
of a claim not related to the property
Venue - ANS geographic area where lawsuit should be brought
and Correct Answers.
Describe the Court systems of the Federal and State Judiciary? Be able to explain the
levels of court (including the three levels of Federal Court) - ANS - A court may render a
binding decision only when it has jurisdiction over the dispute and the parties to dispute;
that is, when it has a right to hear and make a judgement in a case
- Judges in Federal court are appointed for life by president, subject to confirmation by
senate
-Federal Court has three main levels
Federal Court - District Courts, Court of Appeals, The Supreme Court, Special Courts
- CHECK PAPER
State Courts - inferior trial courts, trial courts, appellate courts
What does the due process clause of the 5th and 14th amendments prohibit? - ANS
They prohibit the federal and state government from depriving any person of life, liberty,
or property without due process of law.
What does the 1st amendment protect? - ANS The 1st amendment protects Free
Speech but it’s not absolute. Some forms of speech are not protected (such as
obscenity). It includes Corporate Political Speech, Defamation, and Commercial Speech
Corporate Political Speech - ANS a corporation right to speak out on political issues
Commercial Speech - ANS expression related to the economic interests of the speaker
and its audience; receives a lesser degree of protection
Defamation - ANS civil wrong or tort that diminishes a person's reputation by publishing
a false statement, receives limited constitutional protection.
What does the Commerce Clause do? - ANS The U.S. Supreme Court interprets the
Commerce Clause as virtually complete power to Congress to regulate the economy
and business (general welfare of the nation)
What is Equal Protection and what does it require in regards to the treatment of people?
- ANS It requires that similarly situated persons be treated similarly by governmental
actions. It involves rational relationship test, strict scrutiny test, and intermediate test.
Rational Relationship Test - ANS requires that the classification conceivably bear some
rational relationship to a legitimate government interest.
Strict Scrutiny Test - ANS exacting standard of review applicable to regulation affecting
a fundamental right or involving a suspect classification
, Intermediate Test - ANS standard or review for regulation based on gender and
legitimacy
What are the three branches of government? - ANS The three branches of government
are Legislative, Executive, and Judicial
Legislative - ANS makes laws
Executive - ANS enforces Laws
Judicial - ANS interprets laws
What is the principle of "Separation of Powers"? - ANS allocation of powers among
executive, legislative, and judicial branches of government
Describe Jurisdiction (different types, also look at in persona and in rem) - ANS
Jurisdiction is the power or authority of a court to hear and decide a given case.
Different types: Subject Matter Jurisdiction (which involves Exclusive Federal
Jurisdiction and Concurrent Federal Jurisdiction, and Exclusive State Jurisdiction), In
Persona Jurisdiction, In Rem Jurisdiction, Attachment Jurisdiction, Venue
Subject Matter Jurisdiction - ANS Authority of a court to judge a controversy of a
particular kind of case. It includes Exclusive Federal Jurisdiction and Concurrent
Jurisdiction and Exclusive State Jurisdiction
Exclusive Federal Jurisdiction - ANS Federal jurisdiction is exclusive only if Congress so
provides, either explicitly or implicitly
Concurrent Federal Jurisdiction - ANS Federal jurisdiction is concurrent with state
jurisdiction in cases of federal questions (unless there is exclusive federal jurisdiction)
and in diversity cases.
- Diversity of Citizenship: Plaintiffs and defendants from different states and amount in
controversy is over $75,000 or Foreign country brings suit against US citizens, or is Suit
between US citizens and citizens of a foreign country.
Exclusive State Jurisdiction - ANS jurisdiction over all other (non-federal) matters.
In Persona Jurisdiction - ANS Based upon claims against a person, in contrast to
jurisdiction over the person's property. Most state have adopted long arm statutes
In Rem Jurisdiction - ANS based on claims against property
Attachment Jurisdiction - ANS jurisdiction over a defendant's property to obtain payment
of a claim not related to the property
Venue - ANS geographic area where lawsuit should be brought
