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Test Bank for Business Law and the Legal Environment, 6th Edition by Beatty

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Test Bank for Business Law and the Legal Environment, 6th Edition by Beatty

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TEST BANK




TEST BANK

,CHAPTER 1 - 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.

ANS: T PTS: 1 MSC: AACSB Analytic

2. In Anglo-Saxon society, men were put into groups of ten, known as a “tithing” and were individually
held responsible for any injury caused by any member of the group. This is the forerunner of the idea
of business partnerships.

ANS: T PTS: 1 MSC: AACSB Analytic

3. A rule that establishes maximum length of work shifts for air traffic controllers is an example of an
administrative regulation.

ANS: T PTS: 1 MSC: AACSB Analytic

4. 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.

ANS: T PTS: 1 MSC: AACSB Analytic

5. Wilfred was driving too fast for the icy road conditions and hit Sally's car. Sally can sue Wilfred in
criminal court.

ANS: F PTS: 1 MSC: AACSB Analytic

6. If Milan asks a court to order Pamela to stop reprinting his copyrighted material, he is seeking a legal,
rather than an equitable, remedy.

ANS: F PTS: 1 MSC: AACSB Analytic

7. Congress can create a statute on any topic at all.

ANS: F PTS: 1 MSC: AACSB Analytic

8. If the President vetoes a bill, it can still become law if both the House and the Senate approve it with a
51% majority.

ANS: F PTS: 1 MSC: AACSB Analytic

9. The doctrine of precedent is binding on all courts from county courts to the U.S. Supreme Court..

ANS: F PTS: 1 MSC: AACSB Analytic

10. The case citation Pereda v. Parajon, 957 So.2d 1194 (2007) reveals that Pereda is the plaintiff.

, ANS: F PTS: 1 MSC: AACSB Analytic

11. Under the natural law theory of jurisprudence, an unjust law is no law at all.

ANS: T PTS: 1 MSC: AACSB Analytic

12. Common law is a body of cases decided by legislatures.

ANS: F PTS: 1 MSC: AACSB Analytic

13. The Constitution ensures that the states retain all power not given to the national government.

ANS: T PTS: 1 MSC: AACSB Analytic

14. DoorWay Computers, Inc., the trademark owner of "DoorWay," sought a court injunction to prevent
Handyman Hardware, Inc. from using the domain name, "DoorWay.com." A jury will decide whether
DoorWay is entitled to this remedy.

ANS: F PTS: 1 MSC: AACSB Analytic

15. 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 approved the district court's decision and upheld the
outcome in the case.

ANS: T PTS: 1 MSC: AACSB Analytic


MULTIPLE CHOICE

1. 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: D PTS: 1 MSC: AACSB Analytic

2. The Occupational Safety and Health Administration promulgated a rule requiring warehouse
employees to wear hardhats when in the vicinity of an operating forklift. The purpose of the hardhats
is to protect employees from danger of falling objects. This rule is:
a. an executive order.
b. a statute.
c. common law.
d. administrative law.
ANS: D PTS: 1 MSC: AACSB Reflective Thinking

3. 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: B PTS: 1 MSC: AACSB Analytic

4. 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 exercising equitable powers.
c. an executive order.
d. a subpoena.
ANS: B PTS: 1 MSC: AACSB Reflective Thinking

5. The three branches of government in the United States are:
a. the executive, legislative, and administrative.
b. the administrative, executive, and statutory.
c. the executive, legislative, and judicial.
d. the administrative, legislative, and international.
ANS: C PTS: 1 MSC: AACSB Analytic

6. 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.
ANS: C PTS: 1 MSC: AACSB Analytic

7. 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.
ANS: A PTS: 1 MSC: AACSB Reflective Thinking

8. When the Food and Drug Administration prohibits a certain drug from being marketed in the United
States, this is:
a. private law.
b. an administrative regulation.
c. legal negativism.
d. an executive order.
ANS: B PTS: 1 MSC: AACSB Analytic

9. If the title of an appellate court case appears as Jones v. Smith:
a. Jones is the plaintiff and Smith is the defendant.
b. Smith won the trial court decision.
c. you 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.

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