BUL EXAM 1 Questions with Complete
and Correct Answers
T/F: Many areas of law important to business are governed by the Uniform Commercial Code - Answer-
T
Bill sued Ted for libel over statements Ted published in the company newsletter. A jury heard the case
and found that no libel had occurred because the statements were true. Bill is very unhappy with this
decision, but he cannot sue Ted again over these statements because of the doctrine of:
a. Judicial restraint
b. Prior restraint
c. Stare decisis
d. Res judicata - Answer-d
(T/F) Deductive and analogical reasoning alone are sufficient to comprise legal reasoning. - Answer-f
Profit-maximization theory holds
a. Maximizing profits is the only rational imperative
b. Rational self-interest can lead to economic prosperity
c. Lassiez-faire capitalism is the highest economic good
,d. The invisible hand maximizes profits - Answer-b
(T/F) It is the function of the jury to decide the facts that are in dispute in a case. - Answer-t
For diversity of citizenship purposes, a corporation is considered a citizen of
a. the state in which it is incorporated
b. the state in which it has its principal place of business
c. the state of residence of its majority shareholder
d. a and b - Answer-d
(T/F) To hear a case, courts must have subject matter jurisdiction. - Answer-T
In the appeals process, the document submitted by each side arguing the points of law that support its
claims that the verdict should or should not be overturned is an
a. affidavit
b. deposition
c. brief
d. admission - Answer-c
(T/F) Paul and several of his friends bought tickets to a Ravens football game and were outraged that
they were not allowed to march up and down the sidelines carrying signs protesting the repeal of the
Don't Ask, Don't Tell law. They will not be able to sue the Ravens' management for violating their First
Amendment Rights because there was no state action involved. - Answer-T
The doctrine of substantive due process is designed to address:
a. violations of fundamental rights, such as voting and interstate travel
b. seizures of private property for non-public use
, c. punishments without a notice and a hearing
d. laws that deny defendants an appeal of right - Answer-d
(T/F) The purpose of bail is to insure that the accused shows up for trial. - Answer-T
Which of the following statements about white collar crime is true?
a. Businesses are hesitant to prosecute criminal employees because it is bad for the image of the
business
b. Judges don't often impose jail time because the crimes are non-violent
c. Businesses often think of the losses as a cost of doing business
d. All of the above are true statements - Answer-d
Bob's Beer and Booze Barn classifies a clerk as a "managerial assistant" and assigns menial supervisory
duties to the employee, that do not meet the department of labor standards, to avoid paying overtime
wages. Bob "knows" the clerk will not be aware that these new supervisory duties do not meet the
requirements of the DOL and does not expect the DOL will look into their classification if the clerk does
not contest their status with the DOL. This practice is:
a. Technically allowed since the employee has some managerial duties.
b. A legitimate legal strategy to reduce labor costs and remain competitive
c. Unethical and contrary to the letter of the employment laws
d. Unethical and contrary to the spirit of the employment laws.
e. C and D - Answer-E
Fat Frank's Pies falsified federally mandated tests on his "all natural no calories" "Fat Pies" to introduce a
new type of weight-loss pie. Which of the following is true with respect to his actions:
a. Fat Frank can be sued in tort in civil court.
b. Fat Frank can potentially face criminal liability for his actions.
c. Fat Frank behaved unethically
and Correct Answers
T/F: Many areas of law important to business are governed by the Uniform Commercial Code - Answer-
T
Bill sued Ted for libel over statements Ted published in the company newsletter. A jury heard the case
and found that no libel had occurred because the statements were true. Bill is very unhappy with this
decision, but he cannot sue Ted again over these statements because of the doctrine of:
a. Judicial restraint
b. Prior restraint
c. Stare decisis
d. Res judicata - Answer-d
(T/F) Deductive and analogical reasoning alone are sufficient to comprise legal reasoning. - Answer-f
Profit-maximization theory holds
a. Maximizing profits is the only rational imperative
b. Rational self-interest can lead to economic prosperity
c. Lassiez-faire capitalism is the highest economic good
,d. The invisible hand maximizes profits - Answer-b
(T/F) It is the function of the jury to decide the facts that are in dispute in a case. - Answer-t
For diversity of citizenship purposes, a corporation is considered a citizen of
a. the state in which it is incorporated
b. the state in which it has its principal place of business
c. the state of residence of its majority shareholder
d. a and b - Answer-d
(T/F) To hear a case, courts must have subject matter jurisdiction. - Answer-T
In the appeals process, the document submitted by each side arguing the points of law that support its
claims that the verdict should or should not be overturned is an
a. affidavit
b. deposition
c. brief
d. admission - Answer-c
(T/F) Paul and several of his friends bought tickets to a Ravens football game and were outraged that
they were not allowed to march up and down the sidelines carrying signs protesting the repeal of the
Don't Ask, Don't Tell law. They will not be able to sue the Ravens' management for violating their First
Amendment Rights because there was no state action involved. - Answer-T
The doctrine of substantive due process is designed to address:
a. violations of fundamental rights, such as voting and interstate travel
b. seizures of private property for non-public use
, c. punishments without a notice and a hearing
d. laws that deny defendants an appeal of right - Answer-d
(T/F) The purpose of bail is to insure that the accused shows up for trial. - Answer-T
Which of the following statements about white collar crime is true?
a. Businesses are hesitant to prosecute criminal employees because it is bad for the image of the
business
b. Judges don't often impose jail time because the crimes are non-violent
c. Businesses often think of the losses as a cost of doing business
d. All of the above are true statements - Answer-d
Bob's Beer and Booze Barn classifies a clerk as a "managerial assistant" and assigns menial supervisory
duties to the employee, that do not meet the department of labor standards, to avoid paying overtime
wages. Bob "knows" the clerk will not be aware that these new supervisory duties do not meet the
requirements of the DOL and does not expect the DOL will look into their classification if the clerk does
not contest their status with the DOL. This practice is:
a. Technically allowed since the employee has some managerial duties.
b. A legitimate legal strategy to reduce labor costs and remain competitive
c. Unethical and contrary to the letter of the employment laws
d. Unethical and contrary to the spirit of the employment laws.
e. C and D - Answer-E
Fat Frank's Pies falsified federally mandated tests on his "all natural no calories" "Fat Pies" to introduce a
new type of weight-loss pie. Which of the following is true with respect to his actions:
a. Fat Frank can be sued in tort in civil court.
b. Fat Frank can potentially face criminal liability for his actions.
c. Fat Frank behaved unethically
