Business Law quizzes 1-4
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Midlands Technical College *
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Jan 9, 2024
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Chapter 1 Taylor believes that everyone should follow the rules and laws so that order is maintained in society. What theory of law is Taylor subscribing to?
The theory of positive law
A group of people has gathered at city hall to protest Chemcorp's use of animals in testing their products. The protestors are holding up signs and chanting slogans but are not violent. However, Chemcorp wants the protestors arrested. Which of the following types of law will most likely protect the protestors?
Constitutional law
The United States was founded on this theory of jurisprudence.
Natural law
While driving to work in his car, Hunter failed to stop at a stop sign at the end of a road. His car struck Mica's car. Mica is now seeking restitution for the damage to her car. What type of law provides this restitution for her?
Civil law
In 2019, President Trump initiated economic sanctions against Russia. Which of the following types of laws did the president most likely issue to initiate these sanctions?
Executive order
Judge Reynolds, in trying a case involving online piracy, based the decision on a previously decided case from three years ago that had similar circumstances. What type of law did Judge Reynolds use to make the decision?
Common law
Ajmal wants to license a dog before adopting her. He wants more information about
the laws governing dog licensing. Which of the following laws should he consult?
Local laws
Martina has been operating a stationery store out of her house. She receives a letter that the construction is in violation of a zoning ordinance. Which of the following outlines
the penalties for the violation?
The municipal code
Webshare Corporation, a tech startup, has established a new policy on employee e-
mail. The policy reads as follows: "All e-mail sent using the company server is the property of the company and is not private. Supervisors and managers shall have the right to review such e-mail. Inasmuch as the company is liable for e-mail content, it reserves the right to review it." The policy is an example of:
private law
Anna would like to incorporate her plumbing business, which is located in Flagstaff, Arizona. Where is she most likely to find the requirements for incorporation?
Arizona state codes
Chapter 2 According to the constitution of a country, the people have the freedom to express themselves using symbolic speech. During a protest, Liam burns his country's national flag and uses the law of symbolic speech to defend his actions in court. The court, however, rules that desecrating a venerable object conflicts with the constitution's natural law. Therefore, the court deems the action of burning of the country's flag illegal.
In the context, the court's decision is an example of:
positive law.
Many news agencies recently shared a report that studies had shown that drinking a certain type of juice drink was shown to have reduced the incidence of cancer in the patients studied. What the reports did not say was that the company producing that juice drink was the company who sponsored the study. Is this study unethical?
Yes, because the company has a conflict of interest in the study.
Jennifer has been waiting in line to purchase her tickets to the opening night of the newest blockbuster at the movie theatre. After 30 minutes, she is almost at the cashier's counter when a teenager cuts in front of her. What rules or laws has the teenager broken?
Normative standards
Jayshawn Smith is the CEO of International Computer Corporation. Mr. Smith pays 25 cents to the company each time a personal fax comes to him at his office. Mr. Smith's actions:
are meant to establish an effective tone at the top.
A law firm in the Phoenix area provides "sick care" for employees' children. Sick care can be used when the child is too ill to go to school or to its regular care facility. The law firm manager claims that the program has cut down on the number of sick days taken by employees to care for sick children. The program is an illustration of which type of social responsibility school?
Enlightened self-interest school
Richard Martin owns and operates a Dalmatian breeding facility. The state regulations allow him to have up to 50 puppies at any given time for a property of his size. The West family visits the facility to purchase a puppy and sees that the puppies are in cramped cages despite the large property and most of the cages having very little food and water. What type of ethical standards, if any, has Richard Martin violated?
Natural law
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The policy on travel reimbursement at Amco Consulting is that receipts for meals under $25.00 are not required. Internal auditors at Amco have recently discovered that 80 percent of all meal submissions are in a range from $12.50 to $12.99. When one manager is questioned about the manager's submissions and those of the manager's employees, the manager responds, "So, they make a little bit on meals—it helps their miserable salaries." The manager's evaluation:
demonstrates a lapse in the company's ethical culture.
Mico Yakamoto works for MedCo, Inc. Mico is a physician-scientist who is responsible for running the pilot tests on MedCo's new oral spray medication for individuals with adult onset diabetes. Mico has discovered that if test participants spray the medicine incorrectly or for a too short period of time, the medicine will not be as effective as it should be and will lead to insulin shock in some of the participants. Mico talks to one of her colleagues who responds, "Look, there's no need to stop the testing or the drug's release. Just inform the test participants and print in the brochures accompanying the spray that users should spray correctly, because if they do not, they may not receive the necessary dose." Mico is unsure if anyone can be a 100 percent accurate in spraying all the time. Who is affected by Mico's decision, regardless of what decision she makes?
Users of the new oral spray medication
Maria and Mark are co-workers. Mark takes a long lunch almost every day and tells Maria that it is not a big deal because everyone does it. One day, while Mark is away at lunch, his boss comes looking for him. The boss asks Maria if she has seen Mark. Maria
knows that if Mark loses his job, he will not be able to pay his son's hospital bills, but she does not want to lie to the boss as well. Using a standard of moral relativism, what would most likely be her response to the boss?
a.
"No, I haven't seen him."
An employer instituted a wellness program for all employees. The wellness program includes an exercise facility and several pay incentives for losing weight, quitting smoking, or beginning an exercise program. The program is not required under any state or national laws. Which of the following schools of social responsibility applies to this employer?
b. Enlightened self-interest school
Chapter 3 Blake ordered a computer by mail from CompUS that did not work when he received it. He attempted to get a refund but could not. Therefore, he filed suit against CompUS. Using the doctrine of s
tare decisis
, which of the following would the judge consider in making a decision?
Past cases involving products ordered by mail
Stewart Davis, owner of The Steak Pit restaurant in Billings, Montana, is suing Western Cornfed Beef, a Kansas City, Kansas, supplier, for breach of contract. Davis refuses to pay $22,000 for steaks he claims were never delivered. Where should Davis properly file suit?
A state court in either Montana or Kansas
NHT Inc. has been involved in a lengthy lawsuit involving their accounting procedures and whether they misrepresented their earnings in order to increase their stock value. NHT Inc. has appealed the latest ruling to the U.S. Supreme Court. A
writ of certiorari
has just been issued by the Supreme Court. Which of the following statements
is true of this scenario?
The U.S. Supreme Court will now hear the case.
Northern Inc. is a corporation that makes parts for automobiles. The U.S. government has charged Northern Inc. with violating the Sarbanes-Oxley Act in its facilities in Texas,
Illinois, and New Mexico. What type of jurisdiction does the federal court have in this case?
Exclusive jurisdiction
Smitty's is a bait and tackle shop near Lake of the Ozarks, Missouri, owned by Red Smith. Smitty's has a website, www.smittys.com. Smitty's Bait Shop is located in the Adirondacks in New York, owned by Buzz Smith, who also runs a catalog business. When Buzz tried to get the website, www.smittys.com, for his catalog sales, he discovered Smitty's of Missouri. He filed suit in a federal district court in New York for infringement. Buzz says, "Everyone will go to the site and think I do not have catalog merchandise! I will lose business." Red says, "I am in Missouri. How could anyone be confused? I do not sell by catalog or the Internet and I am not going to New York to defend a pointless lawsuit." Who is correct?
Red is correct.
Danica Shuman was accused of murdering two people. During the trial, the judge refused to allow video evidence into the trial that should have been admitted, and Danica was found guilty. This resulted in a reversible error, and the case was appealed. Which of the following statements would be true if the appellate court remands the case?
The case will be sent back to the trial court for further proceedings.
Aurora Starnes was discriminated against at work and is suing her employer. In which of
the following courts must Aurora file her claim?
c. A federal district court
Emma Samuels is a resident of St. Johnsbury, Vermont. She was injured in an automobile accident when a resident of Burlington, Vermont, struck her car from behind.
Emma wishes to bring suit to recover her medical costs and the costs of repair to her car totaling $45,000. Which of the following is the proper court in which Emma's suit should be brought?
A general trial court in Vermont
Big Wheel Bikes is located in Michigan and sells bikes online by shipping them to all 50 states. Bailey lives in Florida and purchased a bike, but when she received it, the bike frame was bent. When Big Wheel Bikes refused to replace the frame, she filed suit in a Florida court, but Big Wheel Bikes says the case must be heard in Michigan. Based on the idea of minimum contacts, where will the case be heard?
The case will be heard in Florida
Ubi operates a watch repair business in Mesa, Arizona. He orders most of the watch parts from out-of-state suppliers, including watch faces from a supplier in Escondido, California. The supplier does not have a sales force but relies on catalogs shipped to watch dealers throughout the country as a means of marketing. Ubi installed several of the supplier's watch faces on his customers' watches. A strange chemical reaction between perspiration and the faces of the watches caused Ubi's customers to develop rashes and nausea, with some requiring hospitalization. Ubi wishes to bring suit to
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recover damages ($250,000) from the Escondido supplier. In which court should Ubi file
suit?
Rosario Mendes was injured at a wedding reception in a private home. Rosario tripped over a piece of rebar that was sticking from the end of one portion of a sidewalk leading to the front door. Rosario's lawyer believes that the homeowners were aware of the rebar problem and that other guests to the home had tripped over it but not been injured. How can Rosario's lawyer get the information about the homeowner's knowledge?
The attorney can depose the homeowners and others who have been guests.
Alex was attending a party at his friend's house, but there was nowhere to park, so he parked across the street at Bentley's house. During the party, a storm blew over a tree in Bentley's yard, and it landed on Alex's car. Alex is now suing Bentley for the damages, but Bentley claims that Alex did not have permission to park in her yard. What
type of motion would be the best for Bentley's attorney to make to get the case dismissed quickly?
Motion for summary judgment
Trenton was in a jewelry store when it was being robbed by Casey. Trenton has now been called as a witness in the trial for the theft. During the presentation of the case and
evidence, Casey's lawyer is questioning him. What is this type of questioning called?
Cross-examination
Samuel Wasterson is the CEO of Galant, Inc. Galant is being sued by Webtech, a competitor, for antitrust violations. Webtech's CEO says that she met with Wasterson three times in 1993. She explains, "Check his calendar. Check his secretary's logs!" The
meetings are a critical part of the Webtech case. Webtech's lawyers:
will obtain the calendar and logs through mandatory discovery or a request for production.
Charu ran into Daniel's mailbox and destroyed it. Daniel replaced the mailbox that day, but Charu now refuses to pay for the replacement. The case is going to trial. Both attorneys have just received copies of the pleadings. What do they have copies of?
The complaint filed by Daniel and the answer filed by Charu
Karolyn purchased a movie-theatre style popcorn maker from Party Supply Company. The glass overheated and shattered, injuring Karolyn. She wants restitution but does not want to sue the company. She feels that the best way to handle this would be to present outlines of evidence to a judge and panel members who will issue an advisory verdict to start the settlement process. What type of dispute resolution would be best for
Karolyn?
Summary jury trial
Sam Echols was injured when he was hit while crossing the road by a car driven by Becky Samuels. Echols's lawyer suspects that Ms. Samuels was not wearing her contact lenses at the time of the accident as she is required to do by law. After filing a suit, how can Echols's lawyer find out whether Ms. Samuels was wearing her contact lenses?
By a deposition of Ms. Samuels
Jamie has been dunned by her creditors for payment of her credit card bills. "But I have disputes over some of those charges, and I want to go to court under the Fair Credit Billing Act," Jamie tells them. One of her creditors points out to Jamie that there was an arbitration clause in the terms and conditions associated with her credit card. To this, Jamie responds, "Credit card rights are given by federal law. I do not have to go to arbitration!" Which of the following is correct?
Jamie is incorrect; she can be required to go to arbitration.
Johnson Knighton is an employee of PRG Consulting. He has been called for jury duty. One of PRG's clients is Highlight Corporation. Highlight is the defendant in the case for which Johnson has been called for the jury panel. The attorney for the plaintiff who is suing Highlight:
Arbitration