BADM 326 UPDATED ACTUAL PAPER 2026
QUESTIONS WITH SOLUTIONS GRADED A+
◉ Cases involving diversity of citizenship arise only between citizens
of different states.
a. True
b. False. Answer: b. 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. Answer: b. 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. Answer: True
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. Answer: b. 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. Answer: b. 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.. Answer: b.
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.. Answer: a.
, 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.. Answer: a.
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.
QUESTIONS WITH SOLUTIONS GRADED A+
◉ Cases involving diversity of citizenship arise only between citizens
of different states.
a. True
b. False. Answer: b. 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. Answer: b. 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. Answer: True
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. Answer: b. 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. Answer: b. 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.. Answer: b.
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.. Answer: a.
, 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.. Answer: a.
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.
