Business Law Final Multiple Choice
The government itself prosecutes the wrongdoer in a case involving behavior so threatening
that society outlaws it altogether. This kind of case involves:
a. Procedural law.
b. Private law.
c. Civil law.
d. Criminal law. - ANS -Criminal law
Common law refers to:
a. law that is the same or similar in all the states.
b. law made when judges decide cases and then follow those decisions in later cases.
c. law made by legislatures in the form of statutes.
d. the legal systems of France, Germany, and Italy. - ANS -law made when judges decide
cases and then follow those decisions in later cases.
The three branches of government in the United States are: - ANS -executive, legislative,
judicial
In 1992, the North Carolina Supreme Court ruled in a case entitled Goodman v. Wenco Foods,
Inc., that when a substance in food causes injury to a consumer of the food, it is not a bar to
recovery against the seller that the substance was natural to the food. If, in a 2008 case
involving a consumer's injury caused by a fish bone in a bowl of fish chowder, the court followed
the decision in Goodman v. Wenco Foods, Inc., the court's action in the second case is an
example
a. stare decisis.
b. statutory law.
c. public law.
d. criminal law. - ANS -stare decisis
Congress enacted legislation in 1933 to regulate the securities industry and prohibit various
forms of fraud with securities. The Securities Exchange Act of 1934 was passed a year later.
This law created the Securities and Exchange Commission (SEC) as an independent regulatory
entity whose function is to administer the two laws. The SEC has generated rules and
regulations to administer these acts. These rules and regulations are:
a. statutes.
b. administrative law.
c. executive orders.
,d. common law. - ANS -administrative law
Henry David Thoreau felt that war was unjust and therefore refused to pay his taxes when the
United States declared war on Mexico. Thoreau felt that there was a higher law than the law of
the land. Which theory of jurisprudence was he applying?
a. Legal Positivism.
b. Natural Law.
c. Legal Realism.
d. Common Law. - ANS -natural law
The federal judicial branch of the U.S. government:
a. interprets statutes.
b. passes statutes.
c. issues executive orders.
d. creates administrative agencies. - ANS -interprets statutes
The United States Supreme Court has the power to:
a. appoint judges to serve on the Supreme Court.
b. declare an act of Congress unconstitutional.
c. issue executive orders.
d. ratify treaties. - ANS -declare an act of Congress unconstitutional
President Nixon issued wage-price controls in an effort to stabilize the economy. This use of
executive power was:
a. an illegal usurption of legislative powers which belong to the Congress.
b. a valid use of power, known as an executive order.
c. a valid use of power creating a treaty.
d. an illegal usurption of the regulatory powers of administrative agencies. - ANS -a valid use of
power, known as an executive order.
Which of the following would be an example of a civil lawsuit?
a. George is being prosecuted for bank fraud.
b. The government has initiated an action against Jeff for operating a motor vehicle under the
influence of alcohol.
c. Gretta hit Rita in a bar during happy hour. Rita is now suing for her injuries.
d. The district attorney is bringing Ali to court for violating the city's keg ordinance. - ANS
-Gretta hit Rita in a bar during happy hour. Rita is now suing for her injuries.
Curtis filed a lawsuit against Ulhoff for failure to repay $1,000 according to the terms of a
promissory note. The trial ended before it began, with the trial judge granting a motion for
summary judgment in favor of Curtis. Ulhoff has appealed, and the Supreme Court of Iowa has
remanded the case. This means:
a. Curtis automatically wins because he won in the lower court.
b. Ulhoff automatically wins because he lost in the lower court.
,c. Neither party wins because the case is being thrown out.
d. We don't know who wins yet because the case is being returned to the trial court for
additional steps. - ANS -We don't know who wins yet because the case is being returned to the
trial court for additional steps.
Tony fell and injured himself in a Mega Toy Store. Mega Toy Store is incorporated in Delaware.
Tony is a resident of Nevada but was injured in a Mega Toy Store located in Arizona. Mega Toy
does not do business in Nevada. Tony's damages exceed $100,000. If Tony decides to sue
Mega Toy Store:
a. he may file the lawsuit in an Arizona state court.
b. he may file the lawsuit in a federal district court in Arizona.
c. he must file the lawsuit in a federal district court because the federal courts would have
diversity jurisdiction in this case.
d. Either a or b. - ANS -Either a or b.
Federal jurisdiction based upon a "federal question" includes cases based on:
a. the United States Constitution.
b. a federal statute.
c. a federal treaty.
d. All of the above. - ANS -All of the above.
Roxanne was injured when she fell in a hole while walking across her landlord's parking lot. She
and her lawyer hope they can settle the claim. Which of the following statements about
settlements is correct?
a. A case can be settled provided it has not been filed with the court.
b. A case can be settled provided that discovery has not commenced.
c. A case can be settled provided the jury has not heard any testimony.
d. A case can be settled at any time. - ANS -A case can be settled at any time.
In a civil case, the plaintiff must prove the case:
a. by a preponderance of the evidence.
b. by clear and convincing evidence.
c. beyond a reasonable doubt.
d. None of the above; the burden of proof is on the defendant. - ANS -by a preponderance of
the evidence.
When an appellate court hears a case, it may:
a. affirm the decision.
b. reverse the decision.
c. modify the decision.
d. All the above are correct. - ANS -All the above are correct.
, Judge Zellar was asked to decide if a plaintiff could see the interrogatories procured by the
defendant. The judge viewed the documents alone and decided that they should be made
available to the plaintiff. The judge made:
a. an in camera inspection.
b. a motion to compel answers to interrogatories.
c. a request for admission.
d. a request for the production of documents. - ANS -an in camera inspection.
After answering a summons and complaint, Mike received a set of written questions from the
plaintiff's attorney. He was directed to respond to the questions in writing under oath. This
discovery technique is called:
a. a request for admission.
b. a request for the production of documents.
c. a deposition.
d. interrogatories - ANS -interrogatories
When an appeal is filed with the U.S. Supreme Court, the Supreme Court:
a. must hear the case if the validity of a federal statute is in question.
b. must hear the case if two or more U.S. courts of appeals have decided the legal issue
differently.
c. has discretion as to which cases it hears.
d. must hear all cases. - ANS -has discretion as to which cases it hears.
Karen is a strong swimmer. One afternoon she is having a picnic at a lake and sees a man she
does not know drowning. Generally, Karen:
a. has a legal duty to rescue the man.
b. has a legal duty to rescue the man, but only if her efforts will not pose a serious threat to her
own safety.
c. has a legal duty to rescue the man since, as a strong swimmer, she is treated as a "special
class" of persons who must get involved in such situations.
d. has no legal duty to rescue the man. - ANS -has no legal duty to rescue the man.
The U.S. Supreme Court was asked to decide whether same-sex sexual harassment is a
violation of Title VII of the Civil Rights Act. This law forbids discrimination in employment on the
basis of sex. In interpreting statutes, the court may use which of the following?
a. The plain meaning rule.
b. Legislative history.
c. Public policy.
d. All of the above. - ANS -All of the above.
If in 1900 the Minnesota Supreme Court ruled that a minor can void a contract at any time
during minority and in 2008 the courts in Minnesota still follow this ruling, this is an example of:
a. stare decisis.
b. the bystander rule.
The government itself prosecutes the wrongdoer in a case involving behavior so threatening
that society outlaws it altogether. This kind of case involves:
a. Procedural law.
b. Private law.
c. Civil law.
d. Criminal law. - ANS -Criminal law
Common law refers to:
a. law that is the same or similar in all the states.
b. law made when judges decide cases and then follow those decisions in later cases.
c. law made by legislatures in the form of statutes.
d. the legal systems of France, Germany, and Italy. - ANS -law made when judges decide
cases and then follow those decisions in later cases.
The three branches of government in the United States are: - ANS -executive, legislative,
judicial
In 1992, the North Carolina Supreme Court ruled in a case entitled Goodman v. Wenco Foods,
Inc., that when a substance in food causes injury to a consumer of the food, it is not a bar to
recovery against the seller that the substance was natural to the food. If, in a 2008 case
involving a consumer's injury caused by a fish bone in a bowl of fish chowder, the court followed
the decision in Goodman v. Wenco Foods, Inc., the court's action in the second case is an
example
a. stare decisis.
b. statutory law.
c. public law.
d. criminal law. - ANS -stare decisis
Congress enacted legislation in 1933 to regulate the securities industry and prohibit various
forms of fraud with securities. The Securities Exchange Act of 1934 was passed a year later.
This law created the Securities and Exchange Commission (SEC) as an independent regulatory
entity whose function is to administer the two laws. The SEC has generated rules and
regulations to administer these acts. These rules and regulations are:
a. statutes.
b. administrative law.
c. executive orders.
,d. common law. - ANS -administrative law
Henry David Thoreau felt that war was unjust and therefore refused to pay his taxes when the
United States declared war on Mexico. Thoreau felt that there was a higher law than the law of
the land. Which theory of jurisprudence was he applying?
a. Legal Positivism.
b. Natural Law.
c. Legal Realism.
d. Common Law. - ANS -natural law
The federal judicial branch of the U.S. government:
a. interprets statutes.
b. passes statutes.
c. issues executive orders.
d. creates administrative agencies. - ANS -interprets statutes
The United States Supreme Court has the power to:
a. appoint judges to serve on the Supreme Court.
b. declare an act of Congress unconstitutional.
c. issue executive orders.
d. ratify treaties. - ANS -declare an act of Congress unconstitutional
President Nixon issued wage-price controls in an effort to stabilize the economy. This use of
executive power was:
a. an illegal usurption of legislative powers which belong to the Congress.
b. a valid use of power, known as an executive order.
c. a valid use of power creating a treaty.
d. an illegal usurption of the regulatory powers of administrative agencies. - ANS -a valid use of
power, known as an executive order.
Which of the following would be an example of a civil lawsuit?
a. George is being prosecuted for bank fraud.
b. The government has initiated an action against Jeff for operating a motor vehicle under the
influence of alcohol.
c. Gretta hit Rita in a bar during happy hour. Rita is now suing for her injuries.
d. The district attorney is bringing Ali to court for violating the city's keg ordinance. - ANS
-Gretta hit Rita in a bar during happy hour. Rita is now suing for her injuries.
Curtis filed a lawsuit against Ulhoff for failure to repay $1,000 according to the terms of a
promissory note. The trial ended before it began, with the trial judge granting a motion for
summary judgment in favor of Curtis. Ulhoff has appealed, and the Supreme Court of Iowa has
remanded the case. This means:
a. Curtis automatically wins because he won in the lower court.
b. Ulhoff automatically wins because he lost in the lower court.
,c. Neither party wins because the case is being thrown out.
d. We don't know who wins yet because the case is being returned to the trial court for
additional steps. - ANS -We don't know who wins yet because the case is being returned to the
trial court for additional steps.
Tony fell and injured himself in a Mega Toy Store. Mega Toy Store is incorporated in Delaware.
Tony is a resident of Nevada but was injured in a Mega Toy Store located in Arizona. Mega Toy
does not do business in Nevada. Tony's damages exceed $100,000. If Tony decides to sue
Mega Toy Store:
a. he may file the lawsuit in an Arizona state court.
b. he may file the lawsuit in a federal district court in Arizona.
c. he must file the lawsuit in a federal district court because the federal courts would have
diversity jurisdiction in this case.
d. Either a or b. - ANS -Either a or b.
Federal jurisdiction based upon a "federal question" includes cases based on:
a. the United States Constitution.
b. a federal statute.
c. a federal treaty.
d. All of the above. - ANS -All of the above.
Roxanne was injured when she fell in a hole while walking across her landlord's parking lot. She
and her lawyer hope they can settle the claim. Which of the following statements about
settlements is correct?
a. A case can be settled provided it has not been filed with the court.
b. A case can be settled provided that discovery has not commenced.
c. A case can be settled provided the jury has not heard any testimony.
d. A case can be settled at any time. - ANS -A case can be settled at any time.
In a civil case, the plaintiff must prove the case:
a. by a preponderance of the evidence.
b. by clear and convincing evidence.
c. beyond a reasonable doubt.
d. None of the above; the burden of proof is on the defendant. - ANS -by a preponderance of
the evidence.
When an appellate court hears a case, it may:
a. affirm the decision.
b. reverse the decision.
c. modify the decision.
d. All the above are correct. - ANS -All the above are correct.
, Judge Zellar was asked to decide if a plaintiff could see the interrogatories procured by the
defendant. The judge viewed the documents alone and decided that they should be made
available to the plaintiff. The judge made:
a. an in camera inspection.
b. a motion to compel answers to interrogatories.
c. a request for admission.
d. a request for the production of documents. - ANS -an in camera inspection.
After answering a summons and complaint, Mike received a set of written questions from the
plaintiff's attorney. He was directed to respond to the questions in writing under oath. This
discovery technique is called:
a. a request for admission.
b. a request for the production of documents.
c. a deposition.
d. interrogatories - ANS -interrogatories
When an appeal is filed with the U.S. Supreme Court, the Supreme Court:
a. must hear the case if the validity of a federal statute is in question.
b. must hear the case if two or more U.S. courts of appeals have decided the legal issue
differently.
c. has discretion as to which cases it hears.
d. must hear all cases. - ANS -has discretion as to which cases it hears.
Karen is a strong swimmer. One afternoon she is having a picnic at a lake and sees a man she
does not know drowning. Generally, Karen:
a. has a legal duty to rescue the man.
b. has a legal duty to rescue the man, but only if her efforts will not pose a serious threat to her
own safety.
c. has a legal duty to rescue the man since, as a strong swimmer, she is treated as a "special
class" of persons who must get involved in such situations.
d. has no legal duty to rescue the man. - ANS -has no legal duty to rescue the man.
The U.S. Supreme Court was asked to decide whether same-sex sexual harassment is a
violation of Title VII of the Civil Rights Act. This law forbids discrimination in employment on the
basis of sex. In interpreting statutes, the court may use which of the following?
a. The plain meaning rule.
b. Legislative history.
c. Public policy.
d. All of the above. - ANS -All of the above.
If in 1900 the Minnesota Supreme Court ruled that a minor can void a contract at any time
during minority and in 2008 the courts in Minnesota still follow this ruling, this is an example of:
a. stare decisis.
b. the bystander rule.
