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TESTBANK for Jeffrey F. Beatty 7th Edition Introduction to Business Law - Instant Download TESTBANK

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,TESTBANK for Introduction to Business Law , 7th
Edition Jeffrey F. Beatty
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,Name: Class: Date:

Chapter 01: Introduction to Law
True / False

1. Congress passed a law imposing penalties for displaying "indecent" material online where children could see it. If the
U.S. Supreme Court subsequently rules that the statute conflicts with the First Amendment of the U.S. Constitution, the
statute is void.
a. True
b. False
ANSWER: True

2. A rule that establishes maximum length of work shifts for air traffic controllers demonstrates an agency imposing a
regulation.
a. True
b. False
ANSWER: True

3. In 1994, the Arizona Supreme Court decided the case of Hernandez v. Arizona Board of Regents and found a duty of
care to avoid furnishing alcohol to underage consumers. If in 2008 a Flagstaff, Arizona plaintiff brings a lawsuit against
an Arizona university’s fraternity for providing alcohol to members under the legal drinking age, the Hernandez v.
Arizona Board of Regents case will serve as precedent.
a. True
b. False
ANSWER: True

4. Because Alana was driving too fast for the icy road conditions and hit Blanca’s car, Blanca can sue Alana in criminal
court.
a. True
b. False
ANSWER: False

5. Congress can create a statute on any topic at all.
a. True
b. False
ANSWER: False

6. If a president vetoes a bill, it can still become a statute if both the House and the Senate approve it by a 51 percent
majority.
a. True
b. False
ANSWER: False

7. The doctrine of precedent is binding on all courts from county courts to the U.S. Supreme Court.
a. True
b. False
ANSWER: False

8. The case called Kuehn v. Pub Zone would reveal that Kuehn is the plaintiff, since the plaintiff is always listed first.
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,Name: Class: Date:

Chapter 01: Introduction to Law
a. True
b. False
ANSWER: False

9. Common law is a body of cases decided by legislatures.
a. True
b. False
ANSWER: False

10. In order to determine if the case she was hearing broke the law, Judge Jane referred to prior rulings on the same
subject. In other words, the judge is relying on precedent to make her decision.
a. True
b. False
ANSWER: True

11. DoorWay Computers, Inc., the trademark owner of "DoorWay," sought a court injunction to prevent Fixer-Upper
Hardware, Inc. from using the domain name, "DoorWay.com." A jury will decide whether DoorWay is entitled to this
remedy.
a. True
b. False
ANSWER: False

12. In the case of Panavision Int'l v. Toeppen, the Ninth Circuit Court of Appeals affirmed the district court's decision.
This means that the Ninth Circuit Court of Appeals approved the district court's decision and upheld the outcome in the
case.
a. True
b. False
ANSWER: True

Multiple Choice

13. 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.
ANSWER: d

14. In the House of Representatives, a state's voting power is based on its
a. relative wealth.
b. date of entry into the Union.
c. physical size.
d. population.
ANSWER: d
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,Name: Class: Date:

Chapter 01: Introduction to Law

15. 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.
ANSWER: b

16. Hasbro, Inc., the trademark owner of "Candy Land," sought a court injunction to stop Internet Entertainment Group,
LTD from using the domain name, "candyland.com." Internet Entertainment Group had established a sexually explicit site
at the domain name. This injunction would have to be issued by
a. a jury.
b. a judge.
c. an executive order.
d. a lawyer.
ANSWER: b

17. The three branches of government in the United States are the
a. executive, legislative, and administrative.
b. administrative, executive, and statutory.
c. executive, legislative, and judicial.
d. administrative, legislative, and international.
ANSWER: c

18. The doctrine of stare decisis
a. makes the legal process more expensive.
b. is an equitable remedy.
c. makes the law more predictable.
d. is unimportant to the common law.
ANSWER: c

19. 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 of
a. stare decisis.
b. statutory law.
c. public law.
d. criminal law.
ANSWER: a

20. When the Food and Drug Administration prohibits a certain drug from being marketed in the United States, this is
a. private law.
b. an agency regulation.
c. legal negativism.
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,Name: Class: Date:

Chapter 01: Introduction to Law
d. an executive order.
ANSWER: b

21. If the title of an appellate court case appears as Jones v. Smith,
a. then it is correct to say that Jones is the plaintiff and Smith is the defendant.
b. it means that Smith won the trial court decision.
c. one cannot determine which party is the plaintiff because when a defendant loses a trial and files an appeal,
some courts (but not all) reverse the names of the parties.
d. the trial judge was Jones, and the appellate judge is Smith.
ANSWER: c

22. An example of a statute would be
a. the president of the United States issuing an executive order banning the use of federal funds for abortion.
b. a North Dakota judge issuing an injunction prohibiting a man from contacting his ex-wife.
c. the Ohio legislature passing a law requiring all bicycle riders to wear a helmet.
d. the Federal Communications Commission instructing all radio stations to refrain from broadcasting "indecent"
programming during daylight hours.
ANSWER: c

23. The doctrine of precedent requires
a. that a victim testify.
b. that the defendant testify.
c. a 12-member jury of the defendant’s peers.
d. judges to base rulings on previous cases.
ANSWER: d

24. The Securities and Exchange Commission (SEC) is an independent agency whose function is to regulate securities in
the stock market. The SEC thus creates rules. These rules are
a. statutes.
b. administrative law.
c. executive orders.
d. common law.
ANSWER: b

25. In the United States, the powers of government are divided between one national government and 50 state
governments. This type of system is called
a. federalism.
b. democracy.
c. confederation.
d. oligarchy.
ANSWER: a

26. The United States Supreme Court has the power to
a. appoint judges to serve on the Supreme Court.

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,Name: Class: Date:

Chapter 01: Introduction to Law
b. void laws passed by Congress.
c. issue executive orders.
d. ratify treaties.
ANSWER: b

27. The president of the United States
a. creates federal common law.
b. can veto congressional legislation.
c. determines the constitutionality of statutes.
d. passes statutes.
ANSWER: b

28. Antonio assaulted Mark after the two argued about a parking space. The district attorney's office prosecuted Antonio
on assault charges. Subsequently, Mark filed a lawsuit against Antonio for money damages. How would each legal action
be classified?
a. The district attorney's case was a criminal case. Mark's lawsuit was a civil case.
b. The district attorney's case was a civil case. Mark's lawsuit was a criminal case.
c. Both cases are criminal.
d. Both cases are civil.
ANSWER: a

29. President Nixon issued wage-price controls in an effort to stabilize the economy. This use of executive power was
a. an unlawful taking of legislative powers that belong to the Congress.
b. a valid use of power based on Article II of the Constitution.
c. a valid use of judicial power.
d. an unlawful taking of the regulatory powers of administrative agencies.
ANSWER: b

30. Which type of law regulates the rights and duties between parties?
a. Criminal law
b. Administrative law
c. Civil law
d. Judicial law
ANSWER: c

31. Curtis filed a lawsuit against Morgan 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. Morgan has
appealed, and the Supreme Court of Iowa has remanded the case. This means that
a. Curtis automatically wins because he won in the lower court.
b. Morgan automatically wins because he lost in the lower court.
c. neither party wins because the case is being thrown out.
d. it is not clear yet who wins because the case is being returned to the trial court for additional steps.
ANSWER: d


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,Name: Class: Date:

Chapter 01: Introduction to Law
32. Lorraine sues Alan in a Kentucky court. Lorraine loses her lawsuit in Kentucky and appeals her case to a Kentucky
appellate court. The appellate court judges consider Lorraine’s appeal and decide that the trial court made an incorrect
ruling because the trial court judge received testimony from an expert witness without first qualifying the witness as an
expert. The appellate court will
a. affirm the decision of the trial court.
b. reverse the decision of the trial court.
c. not render a decision because the court docket is backlogged.
d. imprison Alan.
ANSWER: b

33. Elena is a new law student and is excited to be in her first law school class. Elena must read her first case and analyze
it in preparation for class the next day. To understand the case, Elena analyzes it in a way that helps her to thoroughly
understand all its nuances. To do this, Elena must understand the
a. facts of the case, the issue involved in the case, the decision of the case, and the reasoning behind that
decision.
b. facts of the case, the decision of the case, and the morality behind that decision.
c. classification of the law involved in the case and the source of law involved in the case.
d. role of the judges in the case, whether it is a federal or state case, and the reasoning behind the ethics of the
case.
ANSWER: a

34. Laws provide society with
a. unlimited power.
b. safe communities, functioning economies, and personal liberties.
c. the means for some members of society to oppress other members through the use of civil lawsuits.
d. an unequal distribution of wealth.
ANSWER: b

35. Our founders created federalism, which is a
a. triple-layered system of government with a national government, state governments, and administrative
agencies all exercising important but limited powers.
b. system where the state governments take precedence over the national government.
c. double-layered system of government, with the national government and state governments each exercising
important but limited powers.
d. system where the national, federal government is supreme.
ANSWER: c

36. The United States Constitution is
a. the supreme law of the land.
b. a discretionary guideline for the federal government to follow.
c. a guideline for states to follow in developing their own state constitutions.
d. stare decisis.
ANSWER: a

37. Hawaii passes a statute that does not conflict with its state constitution, and the statute is followed for three years.
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,Name: Class: Date:

Chapter 01: Introduction to Law
After a period of three years, the statute still does not conflict with the state constitution, but the U.S. Supreme Court rules
that the statute now conflicts with the Fourth Amendment of the United States Constitution. The Hawaii statute will
a. remain effective because it does not conflict with the Hawaii state constitution, which is the supreme law of
the land in Hawaii.
b. remain effective because it has been followed for three years in Hawaii.
c. no longer be effective because statutes must be revised periodically such as here as it has been in effect for
three years.
d. be void as being unconstitutional.
ANSWER: d

38. The Environmental Protection Agency (EPA) is concerned about the high levels of air pollution in American cities.
The EPA proposes a regulation that requires a city with a population density of a specific size to reduce their air pollution
by any means necessary within 12 months. The city of Los Angeles does not believe this regulation must be followed
because it is not a law passed by a government. Is the city of Los Angeles correct in its thinking?
a. Yes as this is not a statute passed by a government, and thus, the regulation does not have to be followed.
b. No because this is a regulation promulgated by an administrative agency and is therefore administrative law
and must be followed.
c. Yes because this regulation is unconstitutional and thus is void.
d. No because this is a regulation promulgated by an administrative agency and is therefore constitutional law
and must be followed.
ANSWER: b

39. When courts decide a case, they tend to apply the same legal rules that other courts have used in similar cases. The
similar case that is applied to the current case is known as
a. precedent.
b. stare decisis.
c. constitutionality.
d. civil law.
ANSWER: a

40. Roberto and Kayleigh are neighbors living in Clermont County, Ohio. Roberto builds a fence on what he believes is
the boundary of his property yet failed to have the property surveyed first. Kayleigh believes the fence is on her property,
and subsequently sues Roberto, asking the court to require him to remove the fence. An earlier Ohio case held that in all
boundary disputes, no fence may be built until a property survey occurs or the fence is subject to removal. The judge in
Roberto and Kayleigh’s case orders that the fence be removed because a survey was not done. In this case, the prior case
upon which the judge relies is
a. stare decisis.
b. precedent.
c. unethical.
d. common law.
ANSWER: b

41. Roberto and Kayleigh are neighbors living in Clermont County, Ohio. Roberto builds a fence on what he believes is
the boundary of his property yet failed to have the property surveyed first. Kayleigh believes the fence is on her property,
and subsequently sues Roberto, asking the court to require him to remove the fence. An earlier Ohio case held that in all
boundary disputes, no fence may be built until a property survey occurs or the fence is subject to removal. The judge in
Roberto and Kayleigh’s case orders that the fence be removed because a survey was not done. In this case, when the judge
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, Name: Class: Date:

Chapter 01: Introduction to Law
relies on the prior case, the judge is engaging in
a. stare decisis.
b. constitutionality.
c. precedent.
d. moral reasoning.
ANSWER: a

42. Stare decisis provides our legal system with
a. morality.
b. stability.
c. professionalism.
d. statutory law.
ANSWER: b

43. Stare decisis makes the law
a. inconsistent.
b. uncertain.
c. predictable.
d. intelligible.
ANSWER: c

44. Precedent is binding only on which courts?
a. Trial courts
b. Appellate courts
c. Higher courts
d. Lower courts
ANSWER: d

45. The Kentucky court system has different levels: the district court, a trial court of limited jurisdiction; the circuit court,
a trial court of general jurisdiction; the Kentucky Court of Appeals, an appellate court; and the Kentucky Supreme Court,
the highest court in Kentucky. The Kentucky Court of Appeals hears a case regarding preliminary breath tests and decides
that preliminary breath test results may be entered into evidence at trial. This case is binding on
a. the district and circuit courts.
b. all courts in Kentucky, including the Kentucky Supreme Court.
c. the district court only.
d. no courts, as the use of preliminary breath tests is unconstitutional.
ANSWER: a

46. Which of the following statements accurately defines criminal law?
a. Criminal law regulates the rights and duties between parties.
b. Criminal law results in equitable remedies and money damages.
c. Criminal law concerns behavior so threatening that society outlaws it altogether.
d. Criminal law is a form of constitutional law.
ANSWER: c
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