Business Law 18

Mo Hassan

Exam I Review Chapter 1-4

 

Multiple Choice

Identify the letter of the choice that best completes the statement or answers the question.

 

1. “Law”

A.      Establishes rights, duties, and privileges.

B.      Establishes the values of a society.

C.      Governs relationships among individuals.

D.      Governs relationships between citizens and their governments.

 

2. Common law rules develop from

A.      Statues enacted by Congress and the state legislatures.

B.      Regulations issued by administrative agencies.

C.      Decisions of the courts in legal disputes.

D.      Uniform laws drafted by legal scholars.

 

3. A state trail court has before it Eagle Manufacturing Co v. Fine Products Corp., a case with no binding authority. The court can

A.      Not refuse to decide the Eagle case.

B.      Postpone deciding Eagle indefinitely.

C.      Postpone deciding Eagle until there is binding authority.

D.      Refuse to decide Eagle.

 

4. A federal statute applies

A.      Only to matters not covered by state law.

B.      Only to those states that adopt all of the statute as written.

C.      To all states.

D.      To no states.

 

5. A state regulation that impinges on interstate commerce will be

A.      Always struck down.

B.      Always upheld.

C.      Balanced in terms of the state’s interest in regulating a certain matter against the burden placed on interstate commerce.

D.      Balanced in terms of the burden on the state against the merit and purpose of interstate commerce.

 

6. A state statute that restricts certain kinds of advertising to protect consumers from being misled would likely be held by a court to be

A.      Constitutional under the First Amendment.

B.      Justified by the need to protect individual rights.

C.      Necessary to protect state interests.

D.      An unconstitutional restriction of speech.

 

7. A federal regulation that bans the disclosure of the alcohol content of liquor on labels would likely be held by a court to be

A.      Constitutional under the First Amendment.

B.      Justified by the need to protect individual rights.

C.      Necessary to protect state interests.

D.      An unconstitutional restriction of speech.

 

 

8. Speech that violates criminal laws is protected under the First Amendment

A.      All of the time.

B.      If it is commercial speech.

C.      If it is political speech.

D.      None of the time.

 

9. Substantive due process focuses on

A.      Procedures used to make decisions to take life, liberty, or property.

B.      The content of a law.

C.      The treatment of similarly situated individuals.

D.      All of the above.

 

10. A state statute that imposes a prison term, without a trail, on all street vendors who operate in certain areas would likely be held by a court to be

A.      Constitutional under the due process clause.

B.      Constitutional under the equal protection clause.

C.      Unconstitutional under the due process clause.

D.      Unconstitutional under the equal protection clause.

 

11. A law that limits the liberty of all persons to do something may violate

A.      Procedural due process.

B.      Substantive due process.

C.      Equal protection.

D.      None of the above.

 

12. If Don follows the duty-based approach to ethical reasoning, he believes that

A.      He has a duty not to engage in unethical behavior regardless of the consequences.

B.      He has a duty to conform to society’s ethical standards.

C.      He has a duty to his employer and family that is superior to any duty owed to society.

D.      He may engage in unethical behavior if it achieves a greater good.

 

13. Rob, the owner of Superior Engineering, Inc., adheres to the “principle of rights” theory. Under this theory, a key factor in determining whether a business decision is ethical is how that descion affects

A.      The right determination under accost-benefit analysis.

B.      The rights of others.

C.      The “right” thing to do.

D.      The right to make a profit.

 

14. Consumer Products Company (CPC) markets its products nationwide. To be considered socially responsible, when making a descion CPC must take into account the needs of

A.      Consumers and employees.

B.      Investors and shareholders.

C.      Society and community.

D.      All of the above.

 

15. International Manufacturing Corporation’s side payments to government officials in exchange for favorable business contracts in foreign countries are considered, in the United States,

A.      Illegal only.

B.      Unethical only.

C.      Illegal and unethical.

D.      None of the above.

 

 

 

 

16. Georgia’s legislature passes a law to regulate local online service providers. The final authority regarding the constitutionality of this law is

A.      Congress.

B.      The courts.

C.      The governor of Georgia.

D.      The National Conference of Commissioners on Uniform State Laws.

 

17. Alpha Company, a business firm based in California, advertises on the Web. A court in New Jersey would be most likely to exercise jurisdiction over Alpha if Alpha

A.      Conducted substantial business with New Jersey residents at its Web site.

B.      Interacted with any New Jersey resident through its Web site.

C.      Only advertised without interactivity at its Web site.

D.      All of the above.

 

18. Mary wins her suit against National Manufacturing Co. National’s best ground for appeal is the trial court’s interpretation of

A.      The conduct of the witnesses during the trial.

B.      The credibility of the evidence that Mary presented.

C.      The dealings between the parties before the suit.

D.      The law that applied to the issues in the case.

 

Fact Pattern 3-1

Donna and Gary are involved in an automobile accident. Gary initiates a lawsuit against Donna by filing a complaint.

 

19. Refer to Fact Pattern 3-1. If Donna responds to Gary’s complaint by filing a counterclaim

A.      Donna will be given time to file an amended answer.

B.      Donna will have a judgment entered in her favor.

C.      Gary will be awarded the damages sought in his complaint.

D.      Gary will be given time to file a response.

 

20. Carol files a suit against Delta Corporation. Delta responds that it appears from the pleadings the parties do not dispute the facts and the only question is how the law applies to those facts. Delta supports this response with witnesses’ sworn statements. This is

A.      A counterclaim.

B.      A motion for judgment on the pleadings.

C.      A motion for summary of judgment.

D.      A motion to dismiss.

 

21. Standard Supplies Company files a suit against Tool Maker, Inc., over a contract. Before the trial begins, Standard can obtain from Tool

A.      Access to related documents in Tool’s possession.

B.      Accurate information about Tool’s trade secrets.

C.      An admission of the truth of matters unrelated to the contract.

D.      None of the above.

 

22. Pete files a suit against Quality Goods Corporation over a contract. Before the trial begins, Pete can obtain from Quality

A.      Access to related documents in Quality’s possession.

B.      Accurate information about Quality’s trade secrets.

C.      An admission of the truth of matters unrelated to the contract.

D.      None of the above.

 

 

 

23. Sam files a suit against Tina. If this suit is like most cases, it will be

A.      Dismissed before the parties enter a courtroom.

B.      Settled before the parties enter a courtroom.

C.      Dismissed or settled before the parties enter a courtroom.

D.      Resolved only after a trial.

 

24. Bob pushes Carol. Carol falls and breaks her arm. Bob is liable for the injury

A.      If Bob intended to push Carol.

B.      Only if Bob did not intend to break Carol’s arm.

C.      Only if Bob had a bad motive for pushing Carol.

D.      Only if Bob intended to break Carol’s arm.

 

25. Jill accuses of Ken of committing an assault. A person commits an assault if he or she creates in another an apprehension or fear of

A.      Future harm.

B.      Immediate harm.

C.      Past harm.

D.      Past, present, or future harm.

 

26. Larry is sued for assault and battery. Larry can raise defense of property as a defense to the charge of

A.      Assault only.

B.      Battery only.

C.      Assault or battery.

D.      None of the above.

 

27. Jay is accused of libel. Libel includes

A.      Oral defamatory statements only.

B.      Written defamatory statements only.

C.      Oral and written defamatory statements.

D.      None of the above.

 

28. Rob falsely accuses Jim of embezzling company funds. The statement is defamatory only if

A.      A third party hears it.

B.      Jim suffers emotional distress.

C.      The statement is made in an annoying manner.

D.      The statement is published in the media.

 

29. Sandy files a suit against Tom, Alleging defamation. To recover damages, actual malice must be shown if Sandy is

A.      A private individual.

B.      A public figure.

C.      A private individual or public figure.

D.      None of the above.

 

30. April posts a defamatory flame about Bob in an online newsgroup maintained by Online USA, Inc., an Internet service provider. Most likely to be held liable for the remark is

A.      April only.

B.      Online USA only.

C.      Both April and Online USA.

D.      None of the above.

 

 

 

 

 

31. On National Consumer Company’s (NCC) products, NCC currently uses a trademark that neither NCC nor anyone else has registered with the government. Under federal trademark law, NCC

A.      Can register the mark for protection.

B.      Cannot register a mark that has been used in commerce.

C.      Has committed trademark infringement.

D.      Must postpone registration until the mark is out of use for six months.

 

32. Best Goods, Inc., and Great Products Corporation use the mark “Good Housekeeping Seal of Approval” to certify the quality of their products. Best and Great are not in business together and do not own this mark. The mark is

A.      A certification mark.

B.      A collective mark.

C.      A service mark.

D.      None of the above.

 

33. George owns Murphy’s Grill, a restaurant in a small town in Ohio. Without George’s consent, Food Business, Inc., opens a club in New York City called Murphy’s and begins to use “Murphys” as part of the URL for the club’s Web site. Food Business has committed

A.      Copyright infringement.

B.      Patent infringement.

C.      Trademark infringement.

D.      None of the above.

 

34. Earl designs a new computer hard drive, which he names “Sci Phi.” He also writes the operating manual to be included with each final product. Earl could obtain patent protection for

A.      The hard drive only.

B.      The name only.

C.      The operating manual only.

D.      The hard drive, the name and the operating manual.

 

35. The graphics used in “Go!,” a handheld computer game featuring racing cars, are protected by

A.      Copyright law.

B.      Patent law.

C.      Trademark law.

D.      Trade secrets law.