BADM 300 FINAL EXAM CORRECT
100%
Laws and government regulations affect almost all business activities.
a. True
b. False - ANSWERTrue
Laws and government regulations affect all business activities - hiring and firing
decisions, workplace safety, corporations, securities transactions, the manufacturing
and marketing of products, accountancy, supply chains, and business financing are
some of the examples that can be mentioned.
Cases involving diversity of citizenship arise only between citizens of different states.
a. True
b. False - ANSWERb. False
Cases involving diversity of citizenship arise not only between citizens of different states
but also countries.
The amount in controversy in a diversity of citizenship case must be more than $1
million before a federal court can take jurisdiction.
a. True
b. False - ANSWERb. False
Diversity of citizenship arising from disputes between citizens of different states implies
that the two following requirements are met:
The plaintiff and defendant must be residents of different states.
The dollar amount in controversy must exceed $75,000.
Concurrent jurisdiction exists when both federal and state courts have the power to hear
a particular case.
a. True
b. False - ANSWERTrue
Concurrent jurisdiction is the jurisdiction that exists when two different courts, such as a
federal and a state court, have the power to hear a case.
The Bill of Rights protects individuals against types of interference by the federal
government.
a. True
b. False - ANSWERb. True
The first ten amendments to the United States Constitution constitute the Bill of Rights.
They were adopted in 1791 and embody a series of protections for the individuals
against various types of interference by the federal government.
A restriction on commercial speech is valid as long as it forbids only the expression of
views on controversial issues.
a. True
, b. False - ANSWERb. False
Commercial speech if protected by the First Amendment. This Amendment generally
provides for freedom of speech and freedom of religion. Typically, commercial speech
(e.g. marketing and advertising communications) is protected by courts. However, the
protection given by the First Amendment to commercial speech is not as extensive as
the one afforded to non-commercial speech. States may restrict certain kinds of
advertising to avoid costumers from being misled.
Kelly is injured when she slips and falls on Layla's sidewalk. To determine whether
Layla owed a duty of care to Kelly, Layla is subject to the standard of
a. a realistic person.
b. a reasonable person.
c. a recognizable person.
d. a reliable person. - ANSWERb.
Tort law measures duty by the reasonable person standard. In determining whether a
duty of care has been breached, the courts ask how a reasonable person would have
acted in the same circumstances.
Patricia commits an act via e-mail against Othman Finance Company, a business in
California, where the act is a cyber crime. Patricia resides in New York where the act is
not a crime. Prosecution of Patricia in California involves questions of
a. jurisdiction.
b. "maximum contacts."
c. the immunity of Internet service providers.
d. encryption. - ANSWERa.
Cyber crime raises numerous issues in the investigation of crimes and the prosecution
of offenders, especially because it is hard to determine the "location" of a cyber crime.
This raises questions of jurisdiction.
Sonya and Taylor enter into an oral contract that is required to be in writing to be
enforceable. Such a contract is normally
a. voidable by a party who does not wish to follow through with it.
b. void.
c. valid.
d. voidable but only by consent of both parties. - ANSWERa.
Every state has a statute that stipulates what types of contracts must be in writing.
Typically, this statute is referred to as Statute of Frauds. It denies enforceability to
certain contracts that do not comply with its writing requirements. Specifically, a contract
that is oral when it is required to be evidenced by a writing or an electronic record is
voidable by a party who does not wish to follow through the agreement
Country Style, Inc., makes landscaping tools. Country could be liable for a warning
defect if there is a foreseeable risk of harm posed by a product and
a. the omission of a warning renders the product not reasonably safe.
b. there is a reasonable alternative design.
c. there is a lack of care in making of the product.
, d. there is insufficient insurance coverage. - ANSWERa.
A product can be considered defective because of inadequate instructions or warnings.
According with the Restatement (Third) of Torts, Products Liability, Section 2(c), a
product is deemed defective "when the foreseeable risks of harm posed by the product
could have been reduced or avoided by the provision of reasonable instructions or
warnings by the seller or other distributor, or a predecessor in the commercial chain of
distribution, and the omission of the instructions or warnings renders the product not
reasonably safe".
Treadwell Tire Manufacturing Company employs Uri as an agent. To terminate Uri's
authority, Treadwell must notify
a. only third parties who are aware of the agency relationship.
b. the public generally.
c. Uri and any third parties who are aware of the agency relationship.
d. Uri only. - ANSWERc.
When the parties terminate an agency relationship, it is up to the principal to inform any
third parties who know about the agency that it has been terminated. Although an
agent's actual authority ends when the agency is terminated, this procedure is
especially relevant for cases where the agent has apparent authority. Apparent authority
continues until the third party receives notice that such authority has been terminated.
A registration statement must state how a corporation plans to use the proceeds from
the sale of the securities.
a. True
b. False - ANSWERTrue
This question is about the scope of the Securities Act of 1933, which governs initial
public offerings (IPOs). This act was enacted to prohibit several types of fraud and
stabilize the securities market. To this end, it requires that all essential information
concerning the issuance of securities be made available to the public. The registration
statement required by Section 5 of the Securities Act is in line with this general purpose
of public disclosure. Among other info, the registration statement must explain how the
corporation intends to use the proceeds of the sale.
International law is a body of law that governs relations between and among citizens,
not countries.
a. True
b. False - ANSWERb. False
Laws affecting the legal environment of business include not only national laws, but also
international laws. International law is a body of law comprised of international customs,
treaties, and organizations. This body of law governs the relations among or between
nations or countries. However, international law can also have an (indirect) impact on
the lives of citizens in these nations or countries.
Imagine that Apple does sue Tidal for breach of the exclusivity agreement with the
rapper. Apple could file an action in a federal district court because this is a federal
question.
, True
False - ANSWERB. False
Apple's claims, or cause of action, are not based on a federal question, that is, on the
U.S. Constitution, a treaty or federal law. Thus, in this case, only state courts would
have original subject-mater jurisdiction.
Imagine that Apple is a corporation with its registered office in California and Tidal is a
corporation with its registered office in New York. Apple could file a $20 M action with
the Federal District Court of New York based on diversity jurisdiction.
True
False - ANSWERTrue
Federal District Courts can decide cases based on diversity citizenship or diversity
jurisdiction, provided two requirements are met:
The plaintiffs and defendants must be residents of different states;
The dollar amount in controversy must exceed $75,000.
In this case, Apple is a citizen of the state of California. Tidal is a citizen of the state of
New York. Furthermore, the dollar amount in controversy is more than $75,000.
Hence, Apple could file an action against Tidal in the Federal District Court of New York
based on diversity of jurisdiction
Imagine that you are Tidal's attorney. Your client is unpleased with the outcome of the
action at the New York Federal District Court. Where would you most likely appeal?
To the state trial court because it has concurrent jurisdiction in diversity jurisdiction
cases?
To the New York state Supreme Court because there is no other alternative?
To the US Court of Appeals? - ANSWERC.
You would most likely appeal to the US Court of Appeals. The US Court of Appeals is
an intermediate court with appellate jurisdiction at the federal level. US Courts of
Appeals, also known as U.S. Circuit Courts of Appeals, hear appeals from federal
district courts located within their respective judicial circuit. Here, New York happens to
be one of the states where a US Court of Appeals is located.
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:
a. constitutional law.
b. statutory law.
c. administrative law.
d. a Restatement of the Law. - ANSWERc. administrative law.
100%
Laws and government regulations affect almost all business activities.
a. True
b. False - ANSWERTrue
Laws and government regulations affect all business activities - hiring and firing
decisions, workplace safety, corporations, securities transactions, the manufacturing
and marketing of products, accountancy, supply chains, and business financing are
some of the examples that can be mentioned.
Cases involving diversity of citizenship arise only between citizens of different states.
a. True
b. False - ANSWERb. False
Cases involving diversity of citizenship arise not only between citizens of different states
but also countries.
The amount in controversy in a diversity of citizenship case must be more than $1
million before a federal court can take jurisdiction.
a. True
b. False - ANSWERb. False
Diversity of citizenship arising from disputes between citizens of different states implies
that the two following requirements are met:
The plaintiff and defendant must be residents of different states.
The dollar amount in controversy must exceed $75,000.
Concurrent jurisdiction exists when both federal and state courts have the power to hear
a particular case.
a. True
b. False - ANSWERTrue
Concurrent jurisdiction is the jurisdiction that exists when two different courts, such as a
federal and a state court, have the power to hear a case.
The Bill of Rights protects individuals against types of interference by the federal
government.
a. True
b. False - ANSWERb. True
The first ten amendments to the United States Constitution constitute the Bill of Rights.
They were adopted in 1791 and embody a series of protections for the individuals
against various types of interference by the federal government.
A restriction on commercial speech is valid as long as it forbids only the expression of
views on controversial issues.
a. True
, b. False - ANSWERb. False
Commercial speech if protected by the First Amendment. This Amendment generally
provides for freedom of speech and freedom of religion. Typically, commercial speech
(e.g. marketing and advertising communications) is protected by courts. However, the
protection given by the First Amendment to commercial speech is not as extensive as
the one afforded to non-commercial speech. States may restrict certain kinds of
advertising to avoid costumers from being misled.
Kelly is injured when she slips and falls on Layla's sidewalk. To determine whether
Layla owed a duty of care to Kelly, Layla is subject to the standard of
a. a realistic person.
b. a reasonable person.
c. a recognizable person.
d. a reliable person. - ANSWERb.
Tort law measures duty by the reasonable person standard. In determining whether a
duty of care has been breached, the courts ask how a reasonable person would have
acted in the same circumstances.
Patricia commits an act via e-mail against Othman Finance Company, a business in
California, where the act is a cyber crime. Patricia resides in New York where the act is
not a crime. Prosecution of Patricia in California involves questions of
a. jurisdiction.
b. "maximum contacts."
c. the immunity of Internet service providers.
d. encryption. - ANSWERa.
Cyber crime raises numerous issues in the investigation of crimes and the prosecution
of offenders, especially because it is hard to determine the "location" of a cyber crime.
This raises questions of jurisdiction.
Sonya and Taylor enter into an oral contract that is required to be in writing to be
enforceable. Such a contract is normally
a. voidable by a party who does not wish to follow through with it.
b. void.
c. valid.
d. voidable but only by consent of both parties. - ANSWERa.
Every state has a statute that stipulates what types of contracts must be in writing.
Typically, this statute is referred to as Statute of Frauds. It denies enforceability to
certain contracts that do not comply with its writing requirements. Specifically, a contract
that is oral when it is required to be evidenced by a writing or an electronic record is
voidable by a party who does not wish to follow through the agreement
Country Style, Inc., makes landscaping tools. Country could be liable for a warning
defect if there is a foreseeable risk of harm posed by a product and
a. the omission of a warning renders the product not reasonably safe.
b. there is a reasonable alternative design.
c. there is a lack of care in making of the product.
, d. there is insufficient insurance coverage. - ANSWERa.
A product can be considered defective because of inadequate instructions or warnings.
According with the Restatement (Third) of Torts, Products Liability, Section 2(c), a
product is deemed defective "when the foreseeable risks of harm posed by the product
could have been reduced or avoided by the provision of reasonable instructions or
warnings by the seller or other distributor, or a predecessor in the commercial chain of
distribution, and the omission of the instructions or warnings renders the product not
reasonably safe".
Treadwell Tire Manufacturing Company employs Uri as an agent. To terminate Uri's
authority, Treadwell must notify
a. only third parties who are aware of the agency relationship.
b. the public generally.
c. Uri and any third parties who are aware of the agency relationship.
d. Uri only. - ANSWERc.
When the parties terminate an agency relationship, it is up to the principal to inform any
third parties who know about the agency that it has been terminated. Although an
agent's actual authority ends when the agency is terminated, this procedure is
especially relevant for cases where the agent has apparent authority. Apparent authority
continues until the third party receives notice that such authority has been terminated.
A registration statement must state how a corporation plans to use the proceeds from
the sale of the securities.
a. True
b. False - ANSWERTrue
This question is about the scope of the Securities Act of 1933, which governs initial
public offerings (IPOs). This act was enacted to prohibit several types of fraud and
stabilize the securities market. To this end, it requires that all essential information
concerning the issuance of securities be made available to the public. The registration
statement required by Section 5 of the Securities Act is in line with this general purpose
of public disclosure. Among other info, the registration statement must explain how the
corporation intends to use the proceeds of the sale.
International law is a body of law that governs relations between and among citizens,
not countries.
a. True
b. False - ANSWERb. False
Laws affecting the legal environment of business include not only national laws, but also
international laws. International law is a body of law comprised of international customs,
treaties, and organizations. This body of law governs the relations among or between
nations or countries. However, international law can also have an (indirect) impact on
the lives of citizens in these nations or countries.
Imagine that Apple does sue Tidal for breach of the exclusivity agreement with the
rapper. Apple could file an action in a federal district court because this is a federal
question.
, True
False - ANSWERB. False
Apple's claims, or cause of action, are not based on a federal question, that is, on the
U.S. Constitution, a treaty or federal law. Thus, in this case, only state courts would
have original subject-mater jurisdiction.
Imagine that Apple is a corporation with its registered office in California and Tidal is a
corporation with its registered office in New York. Apple could file a $20 M action with
the Federal District Court of New York based on diversity jurisdiction.
True
False - ANSWERTrue
Federal District Courts can decide cases based on diversity citizenship or diversity
jurisdiction, provided two requirements are met:
The plaintiffs and defendants must be residents of different states;
The dollar amount in controversy must exceed $75,000.
In this case, Apple is a citizen of the state of California. Tidal is a citizen of the state of
New York. Furthermore, the dollar amount in controversy is more than $75,000.
Hence, Apple could file an action against Tidal in the Federal District Court of New York
based on diversity of jurisdiction
Imagine that you are Tidal's attorney. Your client is unpleased with the outcome of the
action at the New York Federal District Court. Where would you most likely appeal?
To the state trial court because it has concurrent jurisdiction in diversity jurisdiction
cases?
To the New York state Supreme Court because there is no other alternative?
To the US Court of Appeals? - ANSWERC.
You would most likely appeal to the US Court of Appeals. The US Court of Appeals is
an intermediate court with appellate jurisdiction at the federal level. US Courts of
Appeals, also known as U.S. Circuit Courts of Appeals, hear appeals from federal
district courts located within their respective judicial circuit. Here, New York happens to
be one of the states where a US Court of Appeals is located.
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:
a. constitutional law.
b. statutory law.
c. administrative law.
d. a Restatement of the Law. - ANSWERc. administrative law.
